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| The Tax Publishers2020 TaxPub(DT) 0605 (Hyd-Trib) INCOME TAX ACT, 1961
Section 68
Mere bank transactions coupled with existence of well-structured documents were not adequate when there was cash deposits into bank accounts of share applicants a few days before issuance of cheques to assessee. As assessee failed to explain it, AO was justified in making addition under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt of share application money - Cash deposits in bank account of share applicants a few days before issuance of cheques to assessee
Assessee-company received share application money from certain entites. AO noticed cash deposits into bank accounts of share applicants few days before issuance of cheques to assessee. As assessee failed to explain it, AO treated share application money as unexplained credit under section 68.Held: Mere bank transactions coupled with existence of well structured documents were not adequate when there was cash deposits into bank accounts of share applicants a few days before issuance of cheqes to assessee. As assessee failed to explain it, AO was justified in making addition under section 68.
Distinguished:CIT v. Lovely Exports (P.) Ltd. (2008) 216 CTR (SC) 195 : 2009 TaxPub(DT) 261 (SC).
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2006-07
IN THE ITAT, HYDERABAD BENCH
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