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2020 (2) TMI 424 - AT - Income TaxUnexplained cash credit u/s 68 - share application and share premium money received from various entities - identification & creditworthiness of the shareholder/investor company and the genuineness of the share transaction. - HELD THAT:- We are unable to accept the findings of the Assessing Officer that the investors companies are not having sufficient creditworthiness to invest in the assessee company. In light of same, we are of the considered view that the assessee company has discharged the initial onus cast on it in terms of identity and creditworthiness of these two investor companies as well as demonstrating the genuineness of the transaction. The explanation offered and material submitted by the assessee company in support of its explanation is wholesome, credible and verifiable and which has not been correctly appreciated by the lower authorities and in light of the same, the addition so made by the Assessing Officer u/s 68 of the Act is not justified is hereby set aside. In the result, the ground No. 1 of assessee’s appeal is allowed. Adhoc disallowance of various expenses by the CIT(A) - HELD THAT:- We find that there are no specific findings by the Assessing Officer in terms of the expenses not been incurred for the purpose of business or bogus in nature. Therefore, in absence of specific defect been highlighted by the Assessing Officer, the adhoc disallowance so made and confirmed by the ld. CIT(A) is hereby deleted.
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