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2016 (11) TMI 651 - ITAT MUMBAIUnexplained cash credit u/s 68 - creditor/subscribers fails to respond to notices - Held that:- Assessing Officer has disbelieved the genuineness of the subscription received by the assessee as share application money, more specifically when the assessee provided the list of share subscribers, their PAN, source of the funds, therefore, mere suspicion is not enough to sustain the addition u/s 68 of the Act. Summons were issued to shares subscribers by the Assessing Officer and the same were not returned back, meaning thereby, the same were served upon them. The ld. Assessing Officer if was still apprehensive nothing prevented him to take the legal recourse available with him. The assessee also filed confirmation from share subscribers. The bank accounts of share subscribers were produced which establishes their identity. The existence of share holders is not in doubt, their identity is established and they invested the money in purchase of shares. The onus cast upon the assessee has been established, therefore, addition cannot be sustained. AO has not unearthed any wrong or illegal dealing, therefore, he cannot obdurately adhere to his suspicion and treat the subscribed capital as undisclosed income of the assessee. The Department would not be justified in drawing and adverse inference only because the creditor/subscribers fails or neglect to respond to its notices - Decided in favour of assessee
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