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2020 (11) TMI 596 - AT - Income TaxAddition u/s. 68 - Treating the Share Application Money as Unexplained Cash Credit - Addition relying upon third party statement - whether no incriminating documents/materials were found during the course of Search Action/Proceedings? - HELD THAT:- Despite the fact that share applicant have responded to the notice issue under section 133(6) of the Act and details filed along with relevant documents for establishing identity of the parties and genuineness of transaction. We also noted that the AO was excessively influenced by the information received from DDIT, Investigation Wing, Mumbai regarding search action conducted in the case of one Shri Praveen Kumar Jain and his group and the statement recorded of Shri Praveen Kumar Jain. The AO has not independently proved that the share application money is bogus and not travelled through bank account. It is a fact that these companies are duly registered under the Companies Act, 1956 and still active except one company i.e. Navlakha Agrex Pvt. Ltd., which is Amalgamated. As decided in sister concern case above [2019 (1) TMI 681 - ITAT MUMBAI] referring to details proved that the share applicant money received is genuine and explained in the absence of any contrary material brought in by Revenue. Hence, we are of the view that the CIT(A) has rightly quashed the reassessment and also deleted the addition on merits - Decided in favour of assessee.
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