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2022 (7) TMI 848 - AT - Income TaxAssessment u/s 153A - Addition u/s 68 - unsecured loans - No identity of the contributor/creditor as well as the genuineness of the transactions provided - search operation under section 132 - HELD THAT:- In the absence of incriminating material found as a result of search, no addition can be made in the assessment completed under section 143(3) r.w.s. 153A/153C of the Act, if such assessments are unabated on the date of search. See Meeta Gutgutia [2018 (7) TMI 569 - SC ORDER] In this case, there is no dispute with regard to the fact that the search was conducted on 18.12.2012 and as on date of search assessment for the assessment year 2011-12 is unabated and thus in the absence of any incriminating material, no addition can be made including the addition of share capital under section 68 of the Act. In this case, if we go through the addition made under section 68 of the Act, we find that there is no reference to any incriminating material and thus, we are of the considered opinion that the addition made under section 68 of the Act cannot be sustained and thus, we direct the Assessing Officer to delete the addition made in respect of share capital under section 68 of the Act in the case of Shri Pankaj Agarwal, Smt. Shobha Agarwal and Smt. Rita Agarwal. We find that the sole basis for the Assessing Officer to make the addition under section 68 of the Act is that investigation carried out by the Income Tax Department on certain entry providers and statement recorded from them. Except this, no other evidence was available with the Assessing Officer to prove that share capital received from M/s. Kaner Investments Ltd. is accommodation entry taken to convert unaccounted income of the assessee. On the other hand, the assessee has filed all the evidences including name and address of the creditors, confirmation from the parties, financial statements, etc. to prove the identity of the creditor and also filed necessary bank statement to prove the genuineness of the transaction. Further, the investing company has sufficient source to explain the investment made to the assessee company. From the above what is clear is that the assessee has discharged the onus cast upon her as per the provisions of section 68 of the Act by filing necessary evidences. Therefore, once it is proved that the assessee has discharged her onus, then the onus shift to the Assessing Officer to prove otherwise. In this case, except statement of third party, the Assessing Officer does not have any other evidence to justify the accommodation entry was provided to the assessee. In this case, the Assessing Officer has made the addition only on the basis of the information received from the Investigation Wing ignoring all the evidences filed by the assessee and thus, the Assessing Officer has erred in making the addition under section 68 of the Act. Accordingly, we direct the Assessing Officer to delete the addition made under section 68 of the Act. - Appeal of assessee allowed.
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