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2021 (12) TMI 977 - AT - Income TaxAddition u/s 68 - Bogus share transactions - onus upon the assessee to justify the cash credit received - HELD THAT:- The addition though has been made under the provisions of section 68 of the Act, but treating the same as sham transactions. Thus, the assessee cannot be given the benefit by taking the shelter that it has satisfied the conditions imposed under section 68 of the Act. It is equally not believable that a company whose fair market value stands at ₹47 but issuing the shares at a much higher premium. In simple words, no prudent businessman will acquire the shares more than its fair market value until and unless there are evidences suggesting/justify the higher value. For example, the assessee is in the process of expansion or it has been awarded some contract which will yield in future which can justify the value of the shares. But no such information is available on record. As such, the assessee has to satisfy based on the documentary evidence that the transactions involved in the given case is not a sham contract but to our understanding the assessee failed to do so. The contention of the assessee as raised in the ground of appeal that the statement furnished by Shri bagrecha was retracted on the later date cannot help the assessee. It is for the reason that there are many more circumstantial evidences, as discussed above, which are sufficient to hold that the transactions are sham business contracts. Accordingly, we don’t find any reason to interfere in the order of learner CIT (A). Hence, the ground of appeal raised by the assessee is dismissed.
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