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2023 (1) TMI 487 - HC - Income TaxAddition u/s 68 - unexplained credits in the books of account - unexplained credits in the books of account concerned infusion of share capital money and money by way of share premium in the respondent/assessee company - triple test of creditworthiness, identity and genuineness of the investment made proved or not? - ITAT deleted the addition - HELD THAT:- In this case, there was one investor, i.e. Mr Taran Pal Singh Kandhari who had invested Rs.4,87,99,855/-.This investment was made by way of purchase of equity stake in the respondent/assessee company. The said investor, as per the findings of fact returned by the Tribunal, had purchased 2,63,783 equity shares of a face value of Rs.10/- each at a premium of Rs.175/- per share. The source of funds was the investor’s salary, who is also a Director in the respondent / assessee company, amounting to Rs 24 lakhs, while the balance amount was secured by him via unsecured loans amounting to Rs 4,78,00,000/-. The above extract from the Tribunal’s order,lists out the eight companies from which unsecured loans were received. Clearly, the respondent/assessee had furnished the documents to establish that it was a genuine transaction where the companies which provided unsecured loans to the investor, i.e., source of source, were identified, insofar as the creditworthiness is concerned. Insofar as the valuation of shares was concerned, the respondent/assessee had also produced the valuation report of the Chartered Accountant which indicated that as per the audited accounts of the respondent/assessee, its shares were worth Rs.185 per share inclusive of premium. Not only were creditworthiness, identity and genuineness established, but also the valuation stood established. Pertinently, nothing contrary to be valuation report produced by the respondent/assessee is available on record. No substantial question of law arises.
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