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2023 (1) TMI 1171 - AT - Income TaxUnexplained cash credit u/s 68 - Bogus share capital and share premium - genuineness and creditworthiness of the investors could not be verified due to non-production of the managing directors of share subscribing companies - HELD THAT:- Non-production of directors of the investors cannot be a ground for making addition in the hands of assessee u/s 68 when the other evidences relating to the raising share capital and also qua the share subscribers are available on record as furnished by the assessee and also the cross-verification done by the AO on the basis of notices issued u/s 133(6) - The case of the assessee is squarely covered by the decisions in the case of Crystal Networks Pvt. Ltd. [2010 (7) TMI 841 - KOLKATA HIGH COURT] wherein it has held that where all the evidences were filed by the assessee proving the identity and creditworthiness of the loan transactions the fact that summon issued were returned un-served or no body complied with them is of little significance to prove the genuineness of the transactions and identity and creditworthiness of the creditors. The assesse has furnished all the evidences proving identity and creditworthiness of the investors and genuineness of the transactions but AO has not commented on these evidences filed by the assessee. AO simply harped on the non production of managing directors of the share subscribing companies to make the addition which is not correct. CIT(A) has passed a very reasoned and speaking order discussing all facts and satisfaction of all the ingredients of section 68 while allowing the relief as stated above. We are inclined to uphold the order of CIT(A) by dismissing the appeal of the revenue.
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