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2023 (9) TMI 1150 - ITAT KOLKATAAddition u/s 68 - Unexplained sundry creditors - CIT(A) deleted the additions - HELD THAT:- It is a case of issue of shares for consideration other than cash for which nothing is brought on record in respect of relevant compliance and documentary evidence under the Companies Act. CIT(A) has not enquired on this aspect which is vital before concluding to give relief to the assessee. Further, identity and creditworthiness of the creditors and the genuineness of the transactions have not been satisfactorily explained as required u/s. 68 of the Act, more importantly, when this information is stated to be the source of investment in the share capital of CMHPL. We set aside the finding given by Ld. CIT(A) and restore the order of AO wherein addition has been made. We also note that even if we presume that the basis adopted by the CIT(A) is correct then also the nature and source of making an investment in the share capital of CMHPL by the assessee remains unexplained when no payments have been made to the stated 71 sundry creditors and, therefore the relief granted by Ld. CIT(A) on the basis of considering sundry creditors as of earlier years would not hold field to bring the assessee out of the burden casted on him to explain the source and nature of investment made by him in the share capital of CMHPL. Accordingly, we allow the grounds taken by the Revenue.
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