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2019 (3) TMI 792 - AT - Income TaxAddition u/s 68 - genuineness of the share application money received - AO issued notices u/s 133(6)to all subscribers -Reply to all the notices were received by the Assessing Officer alongwith ledger account, bank statements and copies of Income tax returns - discharge of initial onus cast upon assessee - HELD THAT:- Once the appellant company filed complete details before the Assessing Officer, then the initial onus upon the assessee company has been discharged to prove the identity of the investor. The appellant company has provided the balance sheet of the investor company's alongwith with their company profiles and details with the Registrar of Companies. The subscriber companies themselves have provided the bank statements and their respective PAN details. It is not the case of the Revenue that the subscriber companies are name lenders or entry providers. Their details are available on public domain on the website of the Registrar of Companies. In the case of Lovely Exports Pvt Ltd [2008 (1) TMI 575 - SUPREME COURT OF INDIA] has laid down the ratio that the assessee has to be merely identified as the share holder and the initial onus u/s 68 of the Act stands discharged on mere identification. CIT Vs. Sophia Finance Ltd [1993 (8) TMI 62 - DELHI HIGH COURT] has laid down the ratio that if the share holders are identified and it is established that they have invested in the purchase of shares, then the amount received by the company would be regarded as capital received. The assessee has no further onus. Exhibits 123 to 139 of the paper book reveal the proportion of investment made by the share applicant companies in the share capital of the appellant company. The percentage of their investment ranges from 5% to 40%, which means that the share applicant company portfolios include investment in other companies also. There is nothing on record to suggest that the other investments made by the share applicant companies have been treated as bogus in the hands of other companies. The applicant company has successfully discharged the initial onus cast upon it by the provisions of section 68 and, therefore, no addition is called for u/s 68 as unexplained cash credit. - Decided in favour of assessee.
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