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2023 (2) TMI 508 - AT - Income TaxAddition u/s 68 - bogus share capital and share premium - HELD THAT:- Considering the facts on record and the provisions of section 68 of the Act, no addition is called for in respect of amount received by the assessee during the preceding year which has been duly accounted and reported in its audited balance sheet - We direct the ld. AO accordingly to delete the addition so made in this respect. In respect of the balance amount received during the impugned year, we note that Ld. AO without even going through and discussing the details submitted by the subscriber companies, insisted for personal appearance to prove the identity, creditworthiness of the subscribers and the genuineness of the transactions. To our mind, Ld. AO could have taken an adverse view only if he could point out the discrepancies or insufficiency in the evidence and details furnished in his office and also as to get further investigation was needed by him by way of recording of statement of the directors of the assessee and the subscriber companies. Hon'ble Bombay High court in the case of PCIT v. Paradise Inland Shipping Pvt. Ltd. [2017 (11) TMI 1554 - BOMBAY HIGH COURT] held that once the assessee has produced documentary evidence to establish the existence of the subscriber companies, the burden would shift on the revenue to establish their case. Going by the records placed by the assessee of all the share subscribing companies, it can be safely held that the assessee has discharged his initial burden and the burden shifted on the AO to enquire further into the matter which he failed to do so. It is also noted that all the investing companies have sufficient own funds available with them to make investment in the assessee. Assessee has discharged its onus to prove the identity and creditworthiness of the share subscribing companies and the genuineness of the transactions received during the impugned year - direct the ld. AO to delete the addition made towards share capital and share premium u/s. 68 - Decided in favour of assessee.
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