In the present matter the assessee had received Rs.2.50 crores from the six companies in the form of share capital and share premium and the same is added by AO as unexplained cash credit. on Appeal before ITAT it was held that –
In the case of the assessee, summons issued by the Assessing Officer to the shareholder companies were duly served upon them and the shareholder companies responded to the Assessing Officer by affirming the investment made by them in the shares of the assessee company and also produced the necessary evidence in support of such investment. The assessee has produced copy of acknowledgement of filing of income tax returns by all the companies, copy of their bank accounts in which amount paid to the assessee is debited, their balance sheet which shows substantial share capital, and in the schedule forming part of the balance sheet, the investment made in the shares of the assessee company was duly disclosed. None of these evidences was rebutted by the Revenue and as such addition of Rs.2.50 Crore deleted by the CIT (A) is upheld.