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TMI Blog2024 (5) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... - assessee has not been able to explain the source of source - as alleged assessee has received accommodation entry by way of share capital and share premium from the overseas entity - HELD THAT:- Assessee has issued the shares with premium and submitted the relevant information before the AO to prove the onus on it towards the identity, capacity and genuineness of the transaction. There is no red flag raised by any other authorities including the RBI and all the approvals are obtained within the norms of FDI. Further at that point of time, there was no requirement for the assessee to prove the source of source, the relevant amendment was came into effect from AY 2013-14. Similarly the issue of restriction on issue of share premium also cam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re premium charged. 3. Deleting the addition of Rs. 5,550,300/- made by disallowing commission paid for obtaining the above bogus share application money Share premium and added back by the AO u/s 68 when the assessee had failed to discharge its onus of proving the genuineness of the transaction. 4. The appellant craves leave for reserving the right to amend, modify, alter and or forego and ground(s) of appeal at any time before or during the hearing of this appeal. 3. At the time of hearing, the Ld. DR brought to our notice the facts of the case involving disallowance u/s 14A and addition of share application money and share premium received by the assessee u/s 68 of the Income Tax Act, 1961 ( the Act for short). The Ld. DR submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same was appealed before the Ld. CIT(A)-4, Kanpur (the assessee company was amalgamated with M/s M.G. Metalloy Pvt. Ltd.). In the above proceedings, the Ld. CIT(A) decided the issue in favour of the assessee vide appellate order dated 07/01/2019 and held that there is no incriminating material found during the search. In further appeal by the Revenue before the Hon ble ITAT, the ITAT decided the issue in favour of the assessee and dismissed the grounds raised by the Revenue on technical issue that there is no incriminating material found during the search. 6. On merits, the Ld. AR submitted that the AO has made the addition based on the following reasons: a) That the assessee has not been able to explain the source of source . b) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Ld. CIT(A) on 29/05/2015 allowing the grounds raised by the assessee on merits of the case. However, in the subsequent proceedings initiated u/s 153C, the exactly similar additions were made by the AO and against the same, on appeal before first appellate authority and coordinate bench has decided the issue in favour of the assessee that there is no incriminating material found during the search as well as subsequent satisfaction recorded by the AO. Since in the appellate proceedings, the issue was decided on the technical issue that there is no incriminating material found during the search proceedings. In the impugned appeal, the revenue has raised the grounds on the merits, which has not reached finality. Therefore, we pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quirement for proving source of source before AO and also there were no restrictions on issue of share premium at that point of time. Considering the above facts on record, Ld CIT(A) has allowed the grounds raised by the assessee. Against which, the revenue is in appeal before us. 8. We observe from the record that the assessee has issued the shares with premium and submitted the relevant information before the AO to prove the onus on it towards the identity, capacity and genuineness of the transaction. There is no red flag raised by any other authorities including the RBI and all the approvals are obtained within the norms of FDI. Further at that point of time, there was no requirement for the assessee to prove the source of source, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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