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2016 (2) TMI 114 - ITAT DELHI

2016 (2) TMI 114 - ITAT DELHI - TMI - Addition u/s. 68 - CIT(A) deleted the addition - Held that:- CIT(A) has rightly deleted the addition in dispute, because the assessee has furnished all necessary documentary evidence for substantiating the claim in dispute.

The issue in dispute is also squarely covered by the judgment of PR. CIT vs. Rakam Money Matters Pvt. Ltd. 2015 (10) TMI 2057. In view of the above, we do not find any infirmity in the order of the Ld. CIT(A), hence, we uphold .....

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- 1. The order of the Ld. CIT(A) is erroneous and contrary to facts and law. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 59,00,000/- made u/s. 68 as all the 17 shares applicants failed to establish creditworthiness and genuineness of transactions. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) failed to appreciate that the onus of establishing the creditworthiness of creditors and g .....

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of at the appeal raised above at the time of hearing. 2. The brief facts of the case are that the assessee filed the return of income for the AY 2007-08 on 25.10.2007 declaring income of ₹ 2,50,220/- and the same was processed u/s. 143(1) of the Act. Subsequently, the case was selected for scrutiny and statutory notice u/s. 143(2) was issued and duly served upon the assessee. The assessment was completed u/s. 143(3) vide order dated 24.12.2009 by the AO at an income of ₹ 61,50,220/- .....

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sked the assessee to furnish the requisite information to establish the genuineness of receipts of share application money and establish the genuineness thereof and creditworthiness and identity of the share holders. In response to the same, assessee filed some information. The AO examined the same and found that the money deposited in the Bank Account of the share applicant and later on issuance of cheque to the assessee company were originated from the assessee company and the socalled alleged .....

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filed the Synopsis in which he has narrated the facts of the case supported with the various decisions rendered by the Hon ble Jurisdictional High Court. He further stated that the issue is squarely covered in favour of the assessee by the decision of the Hon ble Jurisdictional High Court passed in the case of PR. CIT vs. Rakam Money Matters Pvt. Ltd. 2015 (10) TMI 2057 - Delhi High Court decided vide ITA No. 778 of 2015 dated 13.10.2015. He has filed the copy of the said judgment with the advan .....

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essee in the present case to prove the identity, genuineness and creditworthiness of the companies who had subscribed to its shares. Among the materials produced were the Income Tax Returns and the PAN card details of the eight companies. Even if the Directors of these companies did not respond to the summons issued by the AO, it was not impossible for the AO to make proper enquiries to ascertain the genuineness of these entities and satisfy himself of their creditworthiness. As pointed out by t .....

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Likewise, the view taken by the ITAT concurring with the CIT(A) on facts cannot be said to be perverse. 15. The decisions cited by Mr. Sahni turn on their own facts. As far as the broad principles governing the law under section 68 of the Act is concerned, the Court is satisfied that the order of the CIT(A) as confirmed by the ITAT suffers from no legal infirmity. No substantial question of law arises. 16. The Appeal is dismissed. 7.1 After going through the aforesaid judgment of the Hon ble Hig .....

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nowledgement of IT Return, Cheque number through which the payment was received, Copy of bank account, copy of driving license/ration card, share application form and signed confirmation of all the investors to the AO during the assessment proceedings. b. Copies of income tax returns along with computation and balance sheets of all the investors filed by them for the AIY. 2006-07 before your good self. Perusal cash in hand as on 31.03.2006 to deposited the same in their respective bank accounts. .....

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made by them with the appellant company." 5.1.4 The appellant has relied on the legal prepositions as laid out in the following cases:- 1. In case of Commissioner of Income Tax Vs. Dolphin Can Pack Ltd [2006] 283 ITR 190 (Delhi) Delhi High Court inter-alia held that: "Where the credit entry relates to the issue of the share capital, the ITO is entitled to examine whether the alleged shareholders do in fact exist or not. In the course of said enquiry, "The assessee had disclosed to .....

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79 Taxman 1 (Delhi) Delhi High Court. Inter-alia hela as under: "The revenue can make addition under section 68 only if the assessee is unable to explain the credits appearing in its books of account. In the instant case, the assessee had filed subscription form of each of the investors. The said subscription forms contained details, which set out not only the identity of the subscriber, but also gave information with respect to their addresses as well as PANs. During the course of scrutiny .....

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rt Inter-alia held as under: "Even if it be assumed that the subscribers to the increased share capital were not genuine, nevertheless, under no circumstances can the amount of share capital be regarded as on undisclosed income of the assessee. It may be that there are same bogus shareholders in whose name the shares had been issued and the money may have been provided by some other persons. If the assessment of the persons, who are alleged to have really advanced the money, is sought to be .....

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