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2021 (12) TMI 985 - AT - Income TaxAddition u/s 68 - no genuineness of the transaction and the identity and creditworthiness of the creditors not proved - HELD THAT:- Appellant had given adequate information in order to proof the genuineness of the transaction as well identity of the creditors whereas the condition of the provision of Section 68 is this that when any sum is found credited in the books of the assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not in the opinion of the AO satisfactory, the same so credited to be charged to Income Tax as the income of the assessee. Where the assessee is a company where the public are not substantially interested and the sum so credited consists of Share Application Money, share capital, share premium or any such amount by whatever name called, the explanation offered by such assessee shall be deemed to be not satisfactory unless the person in whose name such credit is recorded in the books of the company also offers and explanation about the nature and source of such sum so credited which has been found to be satisfactory the addition under Section 68 is maintainble. Thus, the provision of 68 does not speak about mere belief of the Revenue in regard to the proof of the genuineness of the transaction as well as identity and creditworthiness of the creditors but must have a clear finding on this aspect. Main ingredients of the provision of Section 68 has not been satisfied and taking into consideration this particular aspect of the matter we find that the Ld. AO rightly added the impugned amount in the hands of the assessee - Decided in favour of Revenue.
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