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2020 (4) TMI 90 - AT - Income TaxAddition u/s 68 on account of Share Application - onus to prove - HELD THAT:- In the present case the shareholder directors were existing and have also responded and participated in the reassessment proceedings initiated against them. They have admitted to them having invested in Share Capital of the assessee Company. Neither the AO of assessee company nor the AO of the Directors have alleged that the source of Share Capital was from assessee Company. None of them have doubted the FIRC’s submitted by the assessee and the directors. The Assessee has filed all relevant evidences proving the identities and the credit worthiness of the Directors which also have not been doubted by the AO. AO has not appreciated that the return of income filed by the Directors will only include incomes from sources in India considering that their residential status is that of a ‘Non-resident’. Moreover, the CA certificate filed has also been rejected by the AO on whimsical grounds without bringing on record facts to objectively disbelieve the same. We also note that the ratio laid down by the Hon’ble Apex Court in NRA’s case (supra) on the contrary supports the case of assessee. In the present case, undisputedly, the enquiry conducted by the AO has not unearthed anything negative so as to disbelieve the evidences furnished by the assessee in support of genuineness, identity and credit worthiness of the shareholders directors. Under the circumstances, we are of the considered view that the order of the Ld CIT (A) is correct and needs no interference. Accordingly we dismiss the grounds raised by revenue by upholding the order of Ld CIT (A). - Decided against revenue.
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