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2020 (9) TMI 452 - AT - Income TaxDisallowance of expenditure debited into profit and loss account - HELD THAT:- Business of the assessee has been setup and has commenced during the year under consideration and consequently, necessary expenditure incurred for the purpose of business needs to be allowed s deduction, whether or not any revenue is generated for the year under consideration. CIT(A) after considering relevant facts has recorded categorical findings that the assessee business has been set-up and has commenced its activities and accordingly, all expenditure incurred for the purpose of business needs to be allowed. Facts remains unchanged. The revenue has fails to bring on record any evidences to prove that the findings of facts recorded by the Ld.CIT(A) is incorrect. Assessee has filed necessary evidences to prove that it has commenced its business activity and has generated income from business operations. Therefore, we are of the considered view that the Ld.CIT(A) was right in deleting additions made towards disallowances of expenditure and hence, we are inclined to uphold the findings of Ld.CIT(A) and reject ground taken by the revenue. Addition towards share application money received u/s 68 - HELD THAT:- Assessee has received share application money through proper banking channels. The creditor has filed its financial statements and ITR acknowledgment, which clearly suggest that the creditor has enough source of income to explain the capacity to advance share application money. The other facts brought out by the Ld. AO, as well as the Ld.CIT(A) regarding change of name and subsequent closer of the company is not material to decide the issue, because what is relevant to see is whether, three ingredients provided u/s 68 has been satisfactorily explained or not. In this case, on perusal of details filed by the assessee, we find that the assessee has discharged its onus and prove the credit being share application money received from Global Emission Management Pvt.Ltd with all possible evidences. AO, as well as the Ld.CIT(A) were erred in confirmed additions made towards share application money received from Global Emission Management Pvt.Ltd. Hence, we direct the Ld. AO to delete additions made towards share application money received from Global Emission Management Pvt.Ltd. Appeal filed by the revenue is dismissed
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