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2021 (6) TMI 607 - AT - Income TaxBogus share capital - Addition u/s 68 - identity and creditworthiness of subscribers proved or not? - admission of additional evidence by assessee - HELD THAT:- Once having accepted the fact that identity and creditworthiness of subscribers is not in doubtful, there is no reason for the AO as well as the ld.CIT(A) to doubt the genuineness of transactions merely for the reason that share certificates issued to shareholders was not furnished. CIT(A) himself has recorded in his appellate order that the assessee has filed all forms required to be filed before the Registrar of Companies for increase in authorized share capital. Once, necessary statutory forms are filed before competent authorities, then issue of share certificates to shareholders is only a formality. Therefore, for that reason doubting genuineness of transactions is not correct. Be that as it may, the assessee has filed paper-book enclosing copies of share certificates issued to shareholders - The assessee claimed that copies of share certificates were not placed before the lower authorities. Therefore, we are of the considered view that the issue needs to go back to file of the AO to verify additional evidences filed by the assessee. Hence, we set aside the appeal to file of the AO and direct him to relook the issue after considering additional evidences -Appeal filed by the assessee is treated as allowed for statistical purpose.
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