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2021 (5) TMI 853 - AT - Income TaxAddition u/s 68 - unexplained share capital addition - HELD THAT:- It is not in dispute that both the lower authorities decline to accept the assessee's share capital in involving 42 investors. It is an admitted fact that of these 42 parties have duly filed confirmations both in the course of assessment as well as remand proceedings. The assessee has also submitted a detailed paper book before us running into more than 200 pages comprising of all the details of the said 42 investor parties. This is not the Revenue's case that the assessee had failed to prove identity of investors in the course of factual verification. The Assessing Officer as well as CIT(A) have observed that the said investors land holdings are very much disproportionate to the corresponding share capital money. Learned department representative failed to indicate the so called disproportionate investment qua the share capital investors' land holdings Apart from merely making sweeping remarks, neither the Assessing Officer nor the CIT(A) have examined the assessee's detailed evidences as well as the confirmations from all the remaining parties on merits. We thus conclude in this factual matrix that the impugned unexplained share capital addition made in respect of the assessee's 42 investor parties does not deserve to be upheld. The same is directed to be deleted for this precise reason only. - Decided in favour of assessee.
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