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TMI Blog2019 (6) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the lenders accounts and thereafter they were given to the assessee company by account payee cheque. It is the finding of the CIT(A) that AO has not disputed the above facts nor has brought any material on record to suggest that the said transfers are not genuine transfers as and the lenders also confirmed giving funds to the assessee through account payee cheque and shares were also allotted by the assessee company against such funds. CIT(A) concluded that assessee has established not only the credit worthiness and identity of the said creditors but also established the genuineness of the transaction. None of the finding of the CIT(A) has been dislodged by the revenue with evidences. In the circumstances, we uphold the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn of income, bank statement etc. ignoring the logical findings of the Assessing Officer based on human probabilities, that the financial standing of the alleged subscriber companies being small and meager parties with low incomes and some having written losses, which could not be satisfactorily explained by the assessee. 3. Respondent - Assessee is a limited Company. The issues arise out of the return of income for the assessment year 2010-11. Assessee had shown borrowings of ₹ 3 Crores (rounded off). Assessing Officer verified the same and was of the opinion that the transactions are not genuine. He made addition of ₹ 2,66,00,000/- (rounded off) out of the said sum of ₹ 3 Crores under Section 68 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit worthiness of the creditors is not established for the reason that according to the Assessing Officer the parties who gave the loans are deposited their amounts in the bank accounts just before issue of loans to the creditors and they have not appeared before him. The Ld. CIT(A) after considering the averments of the Assessing Officer and the details furnished before him by the assessee deleted the addition accepting the contentions of the assessee that share application money cannot be assessed in the hands of the assessee in view of the fact that the assessee has allotted shares to 9 creditors out of 12 and the remaining 3 creditors, two are sister concerns and the assessee had repaid part of the loans taken from them and they are a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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