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2022 (6) TMI 566 - AT - Income TaxAddition u/s 68 - Share Capital & Security Premium' received by the assessee as unexplained credits' - HELD THAT:- We observed that the company has been found by fresh IIT graduates as a startup company looking to the future potential in online gaming business. The Assessing Officer has given categorically finding that the source of fund was not doubted. CIT(A) has also considered the decision in the case of Major Metal Ltd [2012 (4) TMI 227 - BOMBAY HIGH COURT] wherein the addition was sustained on the ground that genuineness of the transaction was not proved and creditworthiness of the creditor was also not proved whereas, in the present case the Assessing Officer has accepted the nature and source of funds. In our opinion, when the source of fund is not doubted by the Assessing Officer then he is not justified in making addition in terms of section 68 of the Act. Any addition for receipt of share premium having value more than the market value of the shares could be made in terms of section 56(2) of the Act and not u/s 68 of the Act. - Decided in favour of assessee.
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