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2021 (9) TMI 354 - AT - Income TaxAddition u/s 68 - onus tp prove - identity, creditworthiness of the lenders / investors to advance such monies and genuineness of the transactions not proved - HELD THAT:- As seen that the assessee has duly discharged the primary onus of establishing the identity of the investor entities, proving their respective creditworthiness and to establish the genuineness of the transactions. The same stem from the fact that the assessee had furnished name, addresses, PAN, relevant bank statements, financial statements, Income Tax return copies of the share applicants, their respective confirmations, copy of Form No.2 filed with ROC towards allotment of shares etc. It is the findings of Ld. CIT(A) that the investments were sourced from transfer entries and there was no immediate cash deposit in the account of the investor entities. Onus was on revenue to rebut these evidences by bringing on record cogent material to dislodge assessee’s evidences. However, except for relying upon the investigation findings, no independent enquiries or verifications have been done by Ld. AO. The sole basis of addition is the third party statements given by the directors of these entities. These were merely third party statements which, on standalone basis, could not form the basis of making additions in the hands of the assessee - allegations are not supported by any corroborative evidences. Once the initial onus was discharged by the assessee, it was incumbent upon revenue to carry out further investigation to support the allegation that the credits were unexplained - nothing of that sort has been shown to have been carried out. It is trite law that no additions could be based merely on doubts, conjectures or surmises - additions as made by Ld. AO are not sustainable in the eyes of law. - Decided in favour of assessee.
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