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2022 (11) TMI 355 - AT - Income TaxBogus share transaction - off-market share transactions as not genuine transactions - HELD THAT:- Entire case-records were confronted by the revenue authorities to the assessee and the modus of operation regarding these purchases and sales of shares through off-market trading but the assessee could not provide any answer. A.R before us also admitted that the share transactions entered into by the assessee were off-market transactions and not done through any recognized stock-exchange. A.R could not submit any reason why such off-market trading was resorted to when the share transactions could genuinely be done through recognized stock-exchange. Therefore, upon examination of the facts and circumstances of this case, we are in conformity with the submissions of the D.R that the modus of operations of the share transactions adopted by the assessee through off-market trading and the corresponding claim of loss and also the profit are fictitious, fabricated, false and bogus. We do not find any reasons to interfere with the findings of the CIT(A) and the same is upheld. Ground No. 1 of the appeal of the assessee is dismissed. Addition of share subscription money received - HELD THAT:- The assessee-company was under legal obligation to prove the genuineness of the transactions, identity and creditworthiness of the creditors and the investors and whether they have financial capacity to make the investments in question. This primary onus of the assessee has not been discharged as contemplated u/s 68 of the Act. A.O has done his duty by issuing summons and has done detailed examination of the facts and circumstances of the case. However, the assessee-company has not submitted any documentary evidences for ascertaining whether the transactions were genuine or not and neither have established through any materials/documents that the share subscription money received were not bogus or that they were not name-lending entries. In fact, the summons remained unanswered by these shareholders which were issued and served by the ld. A.O. We are therefore, of the considered view that the creditworthiness of the shareholders are not established, the genuineness of the transactions are also not established and in majority cases the identity of the creditors also not established by the assessee. Thus, there is no reason to interfere with the findings of the CIT(A) in this issue and the additions made by the ld. A.O of Rs. 2,55,00,000/- and as confirmed by the ld. CIT(A) is hereby upheld. Ground No. 2 of assessee’s appeal is dismissed.
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