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2023 (7) TMI 677 - AT - Income TaxAddition u/s 68 - creditworthiness of investor unexplained - non discharge on mandatory onus - arguments of assessee are that all the transactions are among sister concerns which are asset to tax and scrutinized u/s. 143(3), it is not the case where cash has been deposited and entries are taken, additions have been made on the basis of conjectures and surmises despite the fact that the assessee has successfully explained not only source but also sources of the source of receipt of share application money and premium - HELD THAT:- The identical issue was placed in the case of Riddhi Promoters Pvt. Ltd. [2015 (4) TMI 338 - DELHI HIGH COURT] wherein examining the requirement of sec 68 as held that it is not sufficient that the identity of share applicant or the creditor should be establish by the assessee to discharge the initial onus upon the assessee but under the requirement of sec 68 the assessee has to further satisfied the revenue as to the creditworthiness of share applicant/creditor and genuineness of transaction. In the present case the assessee has failed to discharge such mandatory onus. Thus we reach to a logical conclusion that the documents submitted to prove the genuineness of transaction are itself from to be malaises created with the intention to cover up the true nature of transaction and thus the CIT(A) rightly held that the amount received by the appellant company as share capital and premium are nothing but arranged transactions to introduce its unaccounted income/money as share capital through group concerns to give a clear color to the undisclosed income of assessee. Accordingly, grounds of assessee are dismissed.
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