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2021 (9) TMI 501 - AT - Income TaxAddition u/s 68 - share application money/share capital and share premium as unexplained - onus to prove - only reason to treat the share application money as unexplained cash credit is the quantum of premium charged by the assessee - HELD THAT:- Assessee has filed all the requisite documents as well as confirmations from the investor entities to substantiate these transactions. The notices u/s 133(6) has duly been responded by investor entity. The director of M/s Rossari India Biotech Pvt. Ltd. appeared before AO and confirmed the transactions. The findings, in this regard, have already been tabulated in Annexure-1 of impugned order and the same is not in dispute. Under these circumstances, it could very well be said that the assessee had duly discharged the onus in terms of requirement of Sec.68. The onus was on revenue to dislodge assessee’s documentary evidences and rebut the same by bringing on record any cogent material to demonstrate that assessee’s own money flew back in the shape of share application / share premium - nothing of that sort has been brought on record by Ld. AO. It is trite law that no additions could be made merely on the basis of suspicion, conjectures or surmises There is no doubt that the revenue authorities were not required to put blinkers while looking at the documents produced before them and they were entitled to look into the surrounding circumstances to find out the reality of the documents produced before them - no such inquiries have been made by AO except for the allegations that the share application was bogus in nature only because the quantum of premium was high - there is nothing on record to substantiate the allegation that the assessee’s own unaccounted money was routed in the books in the garb of share capital. In the absence of such findings, the impugned additions could not be sustained in law - Decided against revenue.
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