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2022 (7) TMI 433 - AT - Income TaxReopening of assessment u/s 147 - addition on account of share capital and share premium treating the same as an unexplained cash credit u/s 68 - HELD THAT:- We find that assessee has filed its return of income, the same return of income has been accepted as it is without any scrutiny, later on the information is available in the form of statement during the course of survey of the directors of one of the group companies that the share capital obtained by the assessee is bogus, the learned assessing officer cannot be found fault for issuing a notice u/s 148 of the act beyond four years as assessee has failed to disclose the true character of the share capital issued by it. The case of the assessee is squarely covered in favour of the revenue by the decision of the honourable Supreme Court in case of Raymond woolen Mills Ltd versus ITO (1997 (12) TMI 12 - SUPREME COURT] and ACIT versus Rajesh Jhaveri stockbrokers private limited (2007 (5) TMI 197 - SUPREME COURT]. Therefore, we hold that there is a tangible material available with the assessing officer to form a reason to believe that the income of the assessee has escaped assessment. Accordingly, ground numbers 1 – 3 of the appeal are dismissed. Addition on account of share capital and share premium treating the same as an unexplained cash credit u/s 68 - the assessee could able to substantiate its case and satisfy three ingredients being identity, creditworthiness and genuineness of the transactions - As elaborately on the net worth of these companies and percentage of the investments are comparatively lower than total net worth of the investor companies. Accordingly, set aside the order of the CIT(A) and direct the assessing officer to delete the addition and allow this ground of appeal in favour of the assessee
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