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2022 (2) TMI 219 - AT - Income TaxBogus capital created - Addition on account of alleged beneficiary of capital creation of 43 benamidars - fictitious capital were never used which were only paper entries - AO made addition by taking view that no evidence is filed by the assessee that entire transaction is owned by M D Patel in his petition before ITSC - CIT-A deleted the addition - HELD THAT:- CIT(A) in his finding has clearly held that there is no funds transfer from 43 persons to the assessee in the current year and in absence of fund for accommodation entry in the form of gifts, loan and there is no reason to tax the fictitious capital created in case of other taxpayer in the hands of assessee. Thus, in view of above factual and legal discussions and keeping in view of the decisions of Tribunal in various case of assessee’s group we affirm the order of the ld CIT(A). One more reasons to affirm the order of ld CIT(A) that the AO in case of Alkaben Amrutram and Kanchanlala Rana [2016 (8) TMI 1563 - ITAT AHMEDABAD]which were restore by Tribunal to the file of AO to verify the issue of capital crated in these cases and in pursuance of direction of the Tribunal, the AO verified the issue of bogus capital formation and completed the assessment without making additions of bogus capital created and accepted the similar version of those assessee. Thus, ground No.1 & 2 of the revenue is dismissed. Unexplained gifts - assessee has failed to prove with documentary evidence that the alleged gifts were received from the persons who were among the parties owned up by Shri M.D. Patel before the settlement commission - CIT-A deleted the addition - HELD THAT:- CIT(A) while deleting the addition of gifts recorded that before AO the assessee filed affidavit about narrating the similar facts that the amount of Gift is also owned by MD Patel, but he has not accepted it. The ld CIT(A) after considering the report of PCIT dated 04.01.2017, and other order passed by him in similar cases of group deleted the addition of gift . On perusal of various details as recorded in para-17 (supra we find that the either the AO or CIT(A) or ITSC has accepted the fact that entire transaction of capital creation is owned by MD Patel, therefore ,we affirm the order of ld CIT(A). No contrary factor law is brought to our notice to take other view. In the result, we do not find any merit in the ground No.3 of the appeal.
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