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2016 (10) TMI 699 - AT - Income TaxUnexplained unaccounted cash - share application money - seizure of cash during search - assessee contended that, cash was being carried for payment of freight etc - Held that:- The assessee has to make the payment to the railway department through DD out of the cash withdrawn. This also proves that the assessee has made the payment for sugar transported from Latur between 01/04/2005 to 24/04/2006. Thus, there are contradiction in the finding given by the Assessing Officer. Even we noted that the voucher also has the same narration that the advance is given for making the draft for sugar trading at Latur. In his statement Shri Pradeep Kumar Gupta also stated that the money belongs to the company and is duly recorded in the books of the company. It is not a case where the money has been given by the company outside the books of account. Even no iota of evidence has been brought on record which may prove that the money has been given to Shri Pradeep Kumar Gupta by the company outside the books of account. In view of this fact, we are of the view that the nature and source of the said money is duly explained and it cannot be regarded to be an explained one. We, therefore, delete the addition of ₹ 25,40,000/- by setting aside the order of CIT(A). - Decided in favour of assessee Addition made u/s 68 - Held that:- Both the applicants have the PAN and, they are being assessed to income tax. This proves their identity. Both the companies have the shareholders funds. The payment has been made through cheque and banking channels. Copy of their bank accounts were placed on record. The share application money were ultimately returned by the assessee to the respective share applicants as the shares could not be allotted. The party confirmed receipt of the payment. This fact has not been denied. This is a case where the payments received by the company from these parties amounting to ₹ 57,60,000/- has duly been paid back. This fact is apparent not only from their respective confirmation but also from the bank statement. The fact remains that no share was allotted to these companies. In our opinion, the assessee has duly discharged the onus as lie before the assessee. This is not the case where the share applicants are the bogus one and the company has deposited its own money. Had it been the case, the company would have not refunded the money to both the applicants. In view of this fact, we set aside the order of CIT(A) and delete the addition made u/s 68 of the Act.- Decided in favour of assessee
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