2022 (11) TMI 538 - AT - Income Tax
Addition u/s 68 - Unexplained share capital/share premium received by the assessee during the year - HELD THAT:- We note that the said investment was made out of funds generated by liquidating the investment of the company thus in both the above cases even the creditworthiness is not proved and transactions are genuine. Considering all these facts we are not in concurrence with the conclusion of the CIT(A) that this transaction are not genuine besides we note the assessee company has raised sales near real estate projects at Lucknow for which piece of land was already acquired besides we note the assessee company has entered into for number of purchase agreements and also sold some property and thus realized the profit from the said transaction.
We also note that the AO has invoked First proviso to Section 68 which states that the source of source of such credit has to be proved. We observe from the perusal of the Act that First proviso was inserted by the Finance Act, 2012 and is applicable from 01.04.2013 meaning thereby the immediate effect for AY 2013-14 and not from the instant assessment year. Considering the above facts and circumstances of the case, we are inclined to set aside the order of CIT(A) by allowing the appeal of the assessee.