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2021 (1) TMI 735 - AT - Income TaxAddition u/s 68 - Assessee received as preference share capital including share premium front parties unexplained - admission of additional evidence by CIT-A while deleting the addition - HELD THAT:- CIT(A) has admitted the additional evidence relying on the facts and the judicial decisions in particular of Coordinate Bench of Hon'ble tribunal in the case of Shahrukh Khan and DCIT [2006 (7) TMI 532 - ITAT MUMBAI] where it was held, that after calling for remand report from the A.O. on merits as envisaged in Rule 46A of IT Rules, 1962, the CIT(A) has no discretion to refuse to admit the additional evidence. Considering the overall facts in respect of admission of additional evidence, the Ld CIT(A) plays a vital role in exercising his powers and they are co terminus in line with the A.O. and further opportunity was provided to the A.O. by calling for the remand report. The assessee was provided time to file the counter arguments therefore, the CIT(A) action in admitting the additional evidence is within his jurisdiction supported by the judicial decisions and facts and in accordance with law. The Revenue cannot agitate that the CIT(A) should not have admitted the additional evidence. Addition u/s 68 - We find that the Ld. AR has substantiated his arguments with the judicial decisions and the material facts with the evidences which cannot be disputed and the Ld. CIT(A) has also considered the legal aspects and the remand report and took a reasonable decision. We also find that in respect of third ground raised by the revenue, that the CIT(A) has not considered the findings of the A.O. in the remand report in respect of two investors who have nothing to do with the investment but only accommodating operations. Whereas, the Ld CIT(A) having received the remand report has dealt at para 6.4.1 of the order, where these companies have been tested and investigated by the DDIT, (Inv) Ahmedabad and the documentary evidence was filed. CIT(A) accepts that these companies actually exist and have capacity to make investments in assessee company as it was proved in the case of the investigation at Ahmedabad and Baroda. The CIT(A) also observed that the assessee has discharged his onus of burden of proof in respect of identity of investor, creditworthiness and genuineness of the transaction. As relying on M/S. AMI INDUSTRIES (INDIA) P. LTD. [2020 (2) TMI 269 - BOMBAY HIGH COURT] we find that the CIT(A) has passed a reasonable and logical order considering the provisions of law, judicial decisions, remand report and the assessee's own case, and applied the ratio of the judicial decisions to the present case and deleted the addition. The Ld. DR has submitted that the order of the Ld. CIT(A) is bad in law and supported his arguments relying on the order of the A.O. and remand report and could not controvert the findings of the CIT(A) with any new or cogent evidence - Decided against revenue.
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