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2022 (2) TMI 377 - AT - Income TaxAddition u/s 68 - addition on account of share application money - whether assessee has discharged the onus to prove the identity and creditworthiness of the share applicants/creditors and the genuineness of the transactions in accordance with section 68 ? - HELD THAT:- AO deputed inspectors to physically visit Kolkata and collect information directly from the share applicants who gave share application money to the assessee during the year under consideration. It is also an uncontroverted fact that notices under section 133(6) of the Act were issued to the said share applicants which were duly complied with. Assessing Officer himself accepted that inspectors met Shri Ashok Kumar Surekha who represented as the Chairman in these companies. The share applicant companies also provided their acknowledgement of return, copy of account of the assessee in their books of accounts, copy of share certificate and copy of their bank statement directly to the Ld Assessing Officer which were never disproved by the Ld Assessing Officer We find that with the help of supporting/corroborative documentary evidences, the existence of the share applicant companies was proved beyond doubt by the assessee. The assessee during the course of re-assessment proceedings and first appellate proceedings filed requisite documentary evidences which included share application form, extract of minutes of the meeting of the companies, Master data and signatory details, Certificate of incorporation, MOA, AOA, audited financial statements etc. so as to justify the identity and creditworthiness of the share applicants and genuineness of the transactions entered into with them. It is also an uncontroverted fact that the said documents were never disproved by the Ld AO and Ld CIT(A). The identity of the above share applicants was also independently verified by the inspectors during the course of re-assessment proceedings. Notices u/s 133(6) of the Act were issued to the above share applicants which were duly replied to by the share applicants. So far as the share application money received from remaining companies is concerned, we find that the assessee filed ample documentary evidences which discharged the primary onus cast upon it u/s 68 There was no justification for doubting the identity and creditworthiness of the share applicants and genuineness of the transactions entered into with them in the light of the aforesaid discussion and judicial pronouncements (supra). Under the given facts and circumstances of the case, we are of considered view that the assessee company properly discharged the primary onus cast upon it u/s 68 of the Act to justify the identity and creditworthiness of the share applicants and genuineness of the transactions entered into with them and accordingly, addition of made by the Ld AO on account of share application money was not justified - Decided in favour of assessee.
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