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2024 (1) TMI 602 - AT - Income TaxUnexplained cash credit - disbelieving the receipt of share capital along with share premium - addition u/s 68 - AO observed that against the face value of Rs. 1/- each share, the assessee has received the subscription money at Rs. 50/-, in other words, it received 49 rupees as premium - area of difference between the assessee and the ld. Assessing Officer is as to why the subscriber will invest in a Company, who is making losses - CIT(A) deleted addition - HELD THAT:- CIT(Appeals) has held that it is for the businessman to decide how it wants to use its funds. The subscribers have not borrowed the money for making investment with the assessee-company. The group concern might have decided to start some activity on substantial basis in the assessee-company, therefore, it could be a support from the group concern. The ld. 1st Appellate Authority has also examined whether, this excess premium paid by the subscribers is to be construed as a gift to the assessee within the meaning of section 56(2)(vib) of the Income Tax Act but held that this provision is applicable from A.Y. 2013-14 and not in A.Y. 2012-13. On due consideration of the order of ld. CIT(Appeals), we are of the view that it does not call for any interference at our end. Accordingly, the appeal of the Revenue is dismissed on merit.
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