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2022 (1) TMI 1150 - AT - Income TaxAddition u/s 68 - unexplained share application money - addition on account of sale proceeds of shares received by invoking the provisions of section 68 of the IT Act on the ground that the existence of the parties at the given address is not verifiable - CIT-A deleted the addition - HELD THAT:- We do not find any infirmity in the order of the CIT(A) on this issue. We find, the ld. CIT(A), while deleting the addition, has relied on his decision for AY 2013-14 in the case of Maurya Udyog Ltd. [2019 (1) TMI 204 - ITAT DELHI] which is the sister concern of the assessee wherein similar additions were also made by the AO on account of sale of shares of the same parties - we uphold the order of the CIT(A) and the ground raised by the Revenue on this issue is dismissed. Addition on account of unexplained cash - CIT(A) deleted the addition - HELD THAT:- We find, the addition made by the AO in the case of Maurya Udyog Ltd. was deleted by the CIT(A) as facts of the case in hand show that the assessee was never found to be in possession of any real money. The addition having been made only on the strength of some notings found in some file extracted from the computer of Shri Rohtash, clearly establish that the provisions of section 69A of the Act do not apply - there is no mention of the assessee's name in the impugned document. The Assessing Officer has simply assumed that the reference to the impugned amount is in relation to the assessee. In our understanding, no addition can be made on the basis of presumptions and surmises. Assuming, yet not accepting that the amounts were received by the assessee, the same were returned back on the very same date as per Exhibit 85 of the paper book. Even on this count, addition is uncalled for - Decided in favour of assessee. Unexplained share application money received from non-genuine parties - CIT-A deleted the addition - HELD THAT:- The assessee has established the identity of the share applicants by the KYC particulars forwarded by the assessee's bankers to RBI. Further, the bank has informed the RBI that it has received the proceeds from NRI in the form of inward remittances certificate for each amount received. RBI has noted that the assessee has followed due procedure which is required to be followed for issue of shares to foreign share applicants. Moreover, the Department's query from share applicants during extended period of time barring recorded no adverse remarks. Under these circumstances, we do not find any infirmity in the order of the CIT(A) deleting the addition on this issue. Accordingly, the same is upheld and the ground raised by the Revenue on this issue is dismissed.
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