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2022 (11) TMI 519 - AT - Income TaxAddition on account of share application money received - Assessee had not discharged the onus of proving the identity of creditor, the capacity of the persons advancing the money and the genuineness of the transaction regarding share application money - HELD THAT:- The respondent has proved the identity of the investor companies by furnishing their PAN, return of income filed for the year under consideration. Further, the respondent proved the genuineness of the transactions by submitting bank statements, share allotment letter. With regards to the credit worthiness of the party, the respondent has submitted the books of accounts, return of income and audit report of the investor companies. Even, both the investor companies have also submitted the documents as required by the AO. Further, the director of the company has appeared before the AO and confirmed the transactions. The transaction took place through proper banking channels. The audited books of accounts of assessee and investor companies were available with the assessee and the AO has not found any infirmity in the books. Therefore, it is quite apparent that the respondent has discharged his onus of substantiating the identity, genuineness and creditworthiness of the investors. Appeal of the Department is dismissed.
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