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TMI Blog2023 (9) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... ld to be non-genuine in the subsequent assessment year, when there is no change in the factual position. Thus, in our view the AO could not have taken an adverse view with regard to call money received in the impugned assessment year. Therefore, in our opinion, the addition made by AO in the impugned assessment year is unsustainable Even, otherwise also, the assessee has a strong case on merits as well. On going through the detailed factual analysis made FAA after verifying the documentary evidences, it is observed that the assessee has discharged its primary onus of establishing the identity and creditworthiness of the creditors as well as the genuineness of the transactions. Not only the assessee had furnished the confirmations o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Shailesh Gupta, Adv. For the Revenue by Shri Pramod Kumar, Sr. D.R. ORDER Captioned appeal has been filed by the Revenue challenging the order dated 03.09.2019 of Learned Commissioner of Income-tax (Appeals)-7, New Delhi pertaining to Assessment Year 2016-17. 2. Though, the Revenue has raised as many as 10 grounds, however, the only dispute between the parties is with regard to deletion of addition of an amount of Rs. 5,95,87,500/- made by the Assessing Officer under Section 68 of the Act. 3. Briefly the facts relating to the issue and dispute are, the assessee is a resident corporate entity stated to be engaged in real estate business. In the assessment year under dispute, the assessee filed its return of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not deemed to be satisfactory, provisions of Section 68 of the Act will apply. To ascertain the genuineness of the investments made towards share capital and share premium, the Assessing Officer proceeded to conduct independent enquiry by summoning the principal Officers of the investing companies i.e. M/s. Verma Finvest Pvt. Ltd. and M/s. Touchstone Holdings Pvt. Ltd. 5. In response to the summons issued, one of the Directors of Touchstone Holdings Pvt. Ltd., appeared before the Assessing Officer and statement on oath u/s 131 of the Act was recorded from him. Similarly, one of the Directors of M/s. Verma Finvest Pvt. Ltd., the other investing company appeared before Assessing Officer and statement was recorded from him. Analysing retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de in share capital and share premium to be genuine in the impugned assessment year, when the call money was received, the Assessing Officer cannot take an adverse view. Further, as regards the merits of the issue, on analysis of documentary evidences available on record, learned CIT(A) noticed that assessee has discharged its primary onus of establishing the identity and creditworthiness of the creditors as well as the genuineness of the transactions. Thus, he held that none of the ingredients of Section 68 of the Act are fulfilled to make the addition. Accordingly, he deleted the addition made by Assessing Officer. 7. Before us, Learned Departmental Representative relied upon the observations of the Assessing Officer. Per contra, Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record reveal that the equity shares of the assessee were bought by investing companies in the F.Y. 2014-15 relevant to A.Y. 2015-16 at a value of Rs. 300/- per share comprising of face value of Rs. 10/- per each share and premium of Rs. 290/- per share. It is also a fact that out of value of Rs. 300/- per share, in A.Y. 2015-16 on allotment of shares, the investing companies have paid a part of the value of shares, being Rs. 160/- per share comprising of Rs. 5/- towards face value and Rs. 155/- per share as share premium. Whereas, the balance amount of Rs. 140/- per share was paid as call money in the impugned assessment year. It is relevant to observe, in the year of allotment i.e. A.Y. 2015-16, in scrutiny assessment completed u/s 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere filed. On going through the audited financial statements of the investing companies, Learned First Appellate Authority has given a factual finding that both the investors had sufficient funds available with them to make the investments in the shares of the assessee company. He has further found that the source from which the investing companies received the funds to invest in the assessee company also stood explained. The documentary evidences furnished by the assessee, not only prove the source from which the assessee received the investment but the source from where the investing companies generated the funds to invest in the assessee company. Learned First Appellate Authority has given a categorical factual finding that the adverse i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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