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2024 (1) TMI 359 - AT - Income TaxUnexplained cash credit u/s 68 - Original assessment proceedings the assessee did not appear before the AO nor any compliance was made to the summons issued u/s 131 of the Act - CIT(A) came to the conclusion that the assessee has satisfied all the ingredients of Section 68 of the Act while allowing the appeal and analyzed the credentials of the subscribers through financial data - HELD THAT:- CIT(A) has taken a reasoned view by passing a detailed and speaking order which does not require any interference at our end. Moreover the contentions of the revenue does not carry any force when the AO has examined all the details, evidences, share subscribers and issued summons u/s 131 of the Act. In most of the cases we observe that where the subscribers did not appear personally , they filed all the details/evidences in compliance to summons issued u/s 131 of the Act. Meaning thereby that the identity, creditworthiness of the subscribers and genuineness of the transactions were substantially proved. We also note that the ld CIT(A) has also considered the issue that there is no bar on issuing shares at a price higher than the FMV in the instant assessment year as provisions of section provisions of section 56(2)(viib) of the Act are effective from assessment year 2013-14. While allowing the appeal of the assessee we observe that the ld. CIT(A) has relied on a series of decisions as discussed by ld CIT(A) in his order and also distinguished the Hon’ble Apex Court decision in the case of CIT Vs NRA Steel [2019 (3) TMI 323 - SUPREME COURT] In our opinion the ld CIT(A) arrived at a correct conclusion after considering all the facts of the assessee’s case and the ratio laid down in various decisions as referred to in the appellate order. Therefore, we do not find any merit in the appeal of the revenue and consequently the same is dismissed.
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