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2018 (10) TMI 1122 - AT - Income TaxAddition u/s 68 - unexplained capital receipt - "onus' on the assessee to prove to satisfaction of the A.O the "nature" and "source" of the credits in the books of accounts." - Admission of additional evidences by hte CIT(A) - Held that:- All the aforesaid evidences have been filed at the instance of the Ld.CIT(A) and, therefore, the said evidence is covered by Rule 46A(4) which does not require to satisfy the conditions of Rule 46A(1) of Income-tax Rules, 1962. We further notice that under the provisions of section 250(4), the CIT(A) has wide discretion to make such further enquiry, as he thinks fit or to direct the AO to make further enquiry in the light of grounds taken by the assessee. Even rule 46A(4) clarifies that nothing contained in Rule 46A(1) shall curtail the CIT(A)’s power to direct the production of any document or the examination of any witness to enable him to dispose of the appeal Definition of income as provided u/s 2(24) of the Act at the relevant time did not define as income in consideration received for issue of shares in excess of its fair market value. This came into the statute wef 01-04-2013 and thus would have no application to the share premium received by the respondent assessee in the previous year relevant to the AY prior to 2013-14. Similarly, the amendment to section 68 of the Act, by addition of Proviso was made subsequent to previous year relevant to the subject assessment year and cannot be invoked. Therefore, we are of the considered view that even under this count no addition can be made towards share premium u/s 68 of the Act, as it is on account of capital a receipt does not come within the ambit of definition of “income”. CIT(A) has rightly deleted the additions - decided in favour of assessee.
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