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2019 (8) TMI 1333 - AT - Income TaxAddition u/s 68 - share application money alongwith premium - HELD THAT:- There is hardly any dispute between the parties inter alia about the basic admitted fact of the assessee to have raised the impugned share application money from eleven related parties, the AO having taken recourse to sec. 131/133(6) process in all of their cases, these investors having replied from the other end in support of the correctness of the share application money. The assessee’s eleven share applicants confirmed the assessee’s case by fling all necessary documentary evidence as well. There is further no issue between the assessee and the department about their identity, at least with satisfies first of the three relevant parameters identity genuineness and creditworthiness involving unexplained cash credits sec. 68 - We wish to emphasise here that all eleven parties happen to be assessee’s associate concerns / individuals i.e. eight of them are its directors’ relatives and the remaining three turn out to group entities. Assessee has produced oral or documentary evidence. Learned departmental representative at this stage submits that there is no justification for assessee’s extra-ordinary exorbitant premium in case of investor parties having meagre source of income. We find no merit in Revenue’s stand since there is no evidence on record which could suggest that any of the assessee’s eleven investor had been having any dubious transactions in their accounts. Assessing Officer erred in treating the assessee’s share application / premium amount as unexplained cash credits in entirety. The CIT(A)’s findings restricting the same to ₹75 lac only stand reversed therefore. - Decided in favour of assessee
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