TMI Blog2020 (12) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal deleted the additions. As assessee has discharged its initial onus to prove the identity, genuineness of the transaction and creditworthiness of the parties by filing all these documents direct the AO to delete the additions made towards share capital u/s. 68 - Decided in favour of assessee. Assessment u/s 153A - Disallowance u/s 14A - HELD THAT:- We delete the disallowance in the absence of any seized materials for making the disallowance u/s. 14A while completing the assessment u/s.143(3) r.w.s. 153A -AO was erred in making additions towards disallowances of expenditure, in relation to exempt income u/s 14A r.w.Rule 8D(2), in absence of seized materials - Decided in favour of assessee. - ITA NO. 2565/MUM/2018 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rove identity, genuineness of the transaction and creditworthiness of the parties by filing numerous documents. The addition was made without carrying out further enquiries in order to ascertain the claim of the assessee, the Assessing Officer jumped into conclusion on the basis of financial statements of subscribers that none of them had enough sources of income to establish creditworthiness, thus, the Tribunal deleted the additions. In the case on hand before us the assessee submitted the following information to prove the identity, genuineness of the transaction and creditworthiness of the shareholders. S.No. Particulars 1. Letter dated 27.10.2015 filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vt. Ltd. 15. Bank statement of Network Synthetics Pvt. Ltd. highlighting payment for share application to appellant 16. Details of directors of Ken Securities Ltd. and Network Synthetics Pvt. Ltd. 17. Form 2 - Return of allotment of shares filed by appellant before ROC 18. Bank statement of appellant showing receipt of share application money from Ken Securities Ltd. and Network Synthetics Pvt. Ltd. 19. Justification for issue of shares at share premium submitted during the course of assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from share holders cannot be regarded as undisclosed income of the assessee. 18. In this view of the matter and considering the facts and circumstances of this case and also taking into consideration various case laws as discussed hereinabove, we are of the considered view that the assessee has discharged its initial onus to prove identity, genuineness of transactions and creditworthiness of the parties by filing various documents. The AO, without carrying out further inquiries in order to ascertain the claim of the assessee, jumped into conclusion on the basis of financial statements of the subscribers that none of them had enough source of income to establish creditworthiness. Therefore, we are of the view that the AO was erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) r.w.s. 153A of the I.T.Act, 1961, without reference to any incriminating material found as a result of search. It is settled position of law that in order to make any additions in the assessments, which are framed u/s 153A, the additions qua incriminating material is a must. Unless, the AO has incriminating material in his possession to prove that any item of addition is supported by incriminating material found, as a result of search, no additions could be made in the assessments framed u/s 153A, if such assessment has been completed /unabated as on the date of search. In this case, the facts with regard to no reference to incriminating material, in respect of additions towards disallowances of expenditure u/s 14A r.w.Rule 8D is not di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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