|The Tax Publishers2020 TaxPub(DT) 4897 (Mum-Trib)
INCOME TAX ACT, 1961
Assessee by filing plethora evidences proved identity and creditworthiness of investor companies and transaction of receipt of share application money and therefore, amount received could not be treated as unexplained credit under section 68 merely based on third party statement recorded by Investigation Wing.
Income from undisclosed sources - Addition under section 68 - Receipt of share application money - Treatment as unexplained credit based on third party statement recorded by Investigation Wing
AO based on third party statement recorded by investigation wing, treated share application money received by assessee as unexplained credit and made addition under section 68. Held: Assessee by filing details as regards Name, Address, PAN, Income Tax jurisdiction, etc., of Investor companies, Copies of acknowledgement of ITRS of Investor companies, forms of application for equity shares filled by Investor companies, (d) Copies of allotment advices given by the assessee to the Investor companies Director Report, Audit Report, Profit & Loss Account and Balance Sheet of Investor companies Bank statement/Confirmations of Investor companies showing amount paid to the assessee and Copy of Form No. 2 filed with Registrar of Company towards allotment of shares proved identity and creditworthiness of the parties and genuineness of transaction and, therefore, amount received could not be treated as unexplained credit under section 68 merely based on third party statement recorded by investigation wing.
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, MUMBAI BENCH
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