Case Law Details
Morpan Merchant Private Limited Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that addition u/s 68 of the Income Tax Act towards share application money unsustainable since they are not based on any incriminating material found during the course of search.
Facts- The assessee herein belongs to Gauti Group. The assessee along with other group concerns/family members was subjected to search operations u/s. 132 of the Act on 09-03-2015 by the Investigation wing of the Income tax department. Consequent thereto, the assessments were completed in the hands of the assessee for the above said years u/s. 143(3) read with section 153A of the Act.
In the years under consideration, the assessing officer added the share application money received by the assessee as income of the assessee u/s 68 of the Act holding them to be accommodation entries. CIT(A) confirmed the same. Being aggrieved, the present appeal is filed by the assessee.
Conclusion- Held that the additions made by the Assessing Officer under section 68 of the Act towards Share Application money received by the assessee are liable to be deleted, since they are not based on any incriminating material found during the course of search. Accordingly, we set aside the orders passed by the Ld CIT(A) and direct the Assessing Officer to delete the impugned additions made in both these years.
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