Sec. 68 addition of share application money cannot be made if assessee explains nature & source of credit

ITO Vs M/s. Panchsheel Commotrade Pvt. Ltd. (ITAT Kolkata)

Conclusion:

Since all the three conditions as required u/s. 68 i.e. the identity, creditworthiness and genuineness of the transaction was satisfied by assessee and the onus shifted to AO to disprove the materials placed before him, therefore, without doing so, the addition made by AO based on conjectures and surmises could not be justified.

Held:

AO opined that the equity share capi

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