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2015 (2) TMI 1037 - HC - Income TaxAddition u/s 68 - ITAT confirming the order of the CIT (Appeals) who had reversed the AO's decision to disallow share application money of ₹ 1.65 crores under Section 68 - Held that:- AO’s suspicions formed the basis of including the amounts under Section 68 of the Act; whilst suspicion can be the basis for further enquiry, it can never be the ground for a conclusion. In the present instance, the AO apparently had the books and all the relevant information pertaining to the share applicants. n the present case, the course of proceedings indicates that the CIT(Appeals) had called for the Remand Report. That Remand Report clearly pointed to the three share applicants not only being genuine business concerns but also having substantial business activities and further having reasonably sized turnovers. In these circumstances, to establish implausibility on the part of the share applicants to have possessed the means when they applied, the AO ought to have probed further. He did not do so as is evident from the Remand Report where the AO did not offer any comments upon the materials taken into account by the CIT (Appeals). Consequently, the ITAT’s order cannot be faulted. - Decided in fvaour of assessee. Unaccounted cash deposits - ITAT deleted addition - Held that:- AO did not comment adversely in respect of the assessee’s explanation pertaining to the cash deposits in the bank accounts even in the remand report, the inference drawn by the CIT (A) that when the balance matches with the balance sheet and cash book, no addition u/s 68 of the Act is sustainable and later the ITAT cannot be held unreasonable - Decided in fvaour of assessee.
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