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2022 (9) TMI 817 - AT - Income TaxAddition u/s. 68 r.w.s 115BBE - disallowance of investments in the form of share capital and share premium received - HELD THAT:- As gone through the assessment order in the name of company granting investment to assessee passed U/s. 143(3) rws 147 of the Act wherein the fact that the company received funds by issuing equity shares at a premium was recorded in the assessment order. We therefore find merit in the argument of the Ld. AR that these funds were utilized by the investor company in the assessee company in the form of investment as share capital. We also see from the ledger accounts and bank statements submitted by the Ld. AR that the amounts were received through banking channels. CIT(A) has rightly observed that an amount of Rs. 1,95,25,000/- being the opening balance in the ledger account of M/s. Express Dealers Private Limited and the balance amount of Rs. 1,60,27,000/- was received into the bank account of the assessee during the current AY, and hence if the AO wished to tax the income u/s. 68 he should have added only on Rs. 1,60,27,000/- being the receipts during the current financial year and not the opening balance. We also observe from the ledger accounts submitted by the Ld. AR of M/s. Charansheela Consultants Private Limited the amounts were received through banking channels from 2011-12 onwards. AO has erred in treating the investments in the assessee company as unexplained cash credits u/s. 68 r.w.s 115BBE of the Act is not valid in law and we therefore find no infirmity in the order of the Ld. CIT(A) and hence no interference is required. - Decided against revenue.
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