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2019 (2) TMI 991 - AT - Income TaxAddition u/s. 68 - unexplained credits in the form of share capital/share premium during the year - assessee had discharged the onus of proving the identity and creditworthiness of the share subscribers and the genuineness of the subscription - Held that:- Assessee-company received share application money with huge share premium from corporate entities, merely because said amount was received through banking channel, AO was not justified in accepting said transactions as genuine without making proper enquiries and, therefore, impugned revisional order passed by Commissioner setting aside assessment was to be upheld. Regarding the investment made by Hi-Fi Infotech, AR has contented that it is a group company having three companies as share holders, namely Geemad Promoters Pvt. Ltd., Hightech Valuation Consultant and M/s. Wizard Developers Pvt. Ltd. and the fund received as share capital from these three companies by Hi Fi Infotech was invested into assessee company. The investment made in M/s. Hi-Fi Infotech has been accepted by the Assessing Officer of that company and therefore, there is no valid reason to doubt the investment made by M/s. Hi-Fi Infotech into the assessee company. Assessee has produced copy of order passed u/s. 143(3) in the case of this investor company, which was also stated to have been submitted before the AO. In presence of these facts, once the investment in the said company stands accepted by the Revenue authorities, it is not justified to doubt the investment made by the same company into the assessee company on the basis of suspicion and presumption of bogus share capital. The contentions of the assessee could not be controverted on behalf of the Revenue. We, therefore, are of the opinion, that the CIT(A) has rightly deleted the addition made u/s. 68 with respect to this company. - Decided against revenue
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