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2021 (7) TMI 361 - AT - Income TaxUnexplained cash credit u/s 68 - addition on account of share capital & share premium - HELD THAT:- We note that assessee company has discharged its onus to prove three ingredients of section 68, namely, the identity, creditworthiness and genuineness of the share capital and share premium received by it from share subscribers companies. Section 68 of the Act provides that if any sum found credited in the year in respect of which the assessee fails to explain the nature and source shall be assessed as its undisclosed income. In the facts of the present case, both the nature and source of the share application received was fully explained by the assessee. The assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants. The PAN details, bank account statements, audited financial statements and Income Tax acknowledgments were placed on AO's record. Without doing so, the addition made by the AO is based on conjectures and surmises cannot be justified. In the facts and circumstances of the case as discussed above, no addition was warranted under Section 68 - CIT(A) has rightly deleted the addition. - Decided against revenue.
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