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2020 (11) TMI 693 - AT - Income TaxUnexplained share capital - share premium and share application money made u/s.56(1) / u/s 68 - AO has said that since the premium charges are in excess of intrinsic value of the shares, the provisions of Section 68 of the Act could also be applied - Quantum addition deleted by CIT-A - HELD THAT:- This issue has been dealt with in length in the appellate order, wherein the Ld.CIT(A) has categorically held that the provisions of Section 56(1)(viib) of the Act are not applicable to the year under consideration, since new provision is introduced by the Finance Act, 2012, which is effective from AY.2013-14. CIT(A) after considering the assessee’s contentions and submissions has given finings that the provisions of Section 68 of the Act were also satisfied by the assessee. Ld.CIT(A) has noted as assessee has filed the confirmation letters, copies of ITRs, copies of bank statements of five parties, who invested share capital. Besides, the assessee has filed the allotment letters, returns as filed with the AO along with Board’s resolution for allotment of shares. Under these circumstances, we do not find any reason to interfere with the order of Ld.CIT(A), which otherwise appears to be quite reasoned and correct. - Decided in favour of assessee.
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