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2021 (10) TMI 75 - AT - Income TaxUnexplained cash credit u/s 68 - not providing the creditworthiness of the parties and the genuineness of the transactions - scope of pre-amended Sec. 68 - HELD THAT:- As the year in the case of the assessee before us is A.Y. 2010-11, therefore, the aforesaid ‘proviso’ to Sec. 68 of the Act would not be applicable. To sum up, we concur with the view taken by the CIT(A) that not only the assessee had duly substantiated the identity and creditworthiness of the investor companies, as well as proved the genuineness of the transactions in question i.e receipt of share capital and share premium from the aforementioned three shareholder companies, however, independent of that, even otherwise as the aforementioned amounts were received by the assessee company from the abovementioned shareholder companies whose complete details were furnished by the assessee with the A.O, therefore, the same as per the pre-amended Sec. 68 of the Act could not have been assessed as an unexplained cash credit in the hands of the assessee. No infirmity in the view taken by the CIT(A) that the amount received by the assessee company as share capital and share premium from the aforementioned three shareholder companies could not have been assessed as an unexplained cash credit u/s 68 - Decided in favour of assessee.
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