Latest - TMI e-Newsletter
New User/ Regiser
2022 (8) TMI 204 - Income Tax
Addition u/s 68 - addition under share application money and declaring the same as unsecured loan - addition made as the assessee has not discharged the onus - CIT-A deleted the addition - HELD THAT:- The assessee has produced details of notarized confirmation, ITRs and also the bank statement evidencing the payment to assessee company in respect of Mr. Hardeep Singh Nagra, Hrbinder Singh Athwal, Sh. Anil Shama, Sh. S. P. Dham, & Syed Arshad.
As also seen that the above named share holders, were holding the shares in assesses company even before the year under consideration and such shareholding forms part of opening balance of the Assessee as found by the CIT (A), which has not been disputed by the DR. Further, the identity of above assets, genuineness and creditworthiness had also been accepted in those years.
Therefore in our opinion, the assessee has produced enough supporting evidence to substantiate the genuineness of the creditors and has successfully discharge its onus.
In so far as, Mr. Syed Arshad is concerned, the said transaction is between the shareholders inter-se, such transfer has not resulted any increase in the share capital nor resulted in any fresh infusion of funds and the transaction has got no relation to the assessee company and such transaction does not resulting in any amount being credited in the Assessment Year 2008-09 in the books of accounts of the Company. AO has committed an error in disallowing the share application money in the name of Mr. Syed Arshad, which has been rightly deleted by the CIT (A). - Decided in favour of assessee.