https://www.taxtmi.com/caselaws?id=446900 The ITAT Mumbai dismissed the Revenue's appeal challenging additions under section 68 for unexplained cash credits of Rs. 2 crores received as share capital with premium. The AO alleged that 8 out of 15 investor companies were controlled by an individual providing accommodation entries. The ITAT held that mere association with the said individual does not render transactions bogus when investors' identity and creditworthiness were established through submitted documents. The tribunal noted that all investor companies were operational entities with substantial funds, continuing business activities and statutory compliance. Since preference shares were properly issued and redeemed at premium before any search operations, and no specific evidence of manipulation was found, the genuineness of transactions could not be doubted solely based on group association. en-us Mon, 11 Dec 2023 00:00:00 +0530 Thu, 14 Dec 2023 08:29:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446900 The ITAT Mumbai dismissed the Revenue's appeal challenging additions under section 68 for unexplained cash credits of Rs. 2 crores received as share capital with premium. The AO alleged that 8 out of 15 investor companies were controlled by an individual providing accommodation entries. The ITAT held that mere association with the said individual does not render transactions bogus when investors' identity and creditworthiness were established through submitted documents. The tribunal noted that all investor companies were operational entities with substantial funds, continuing business activities and statutory compliance. Since preference shares were properly issued and redeemed at premium before any search operations, and no specific evidence of manipulation was found, the genuineness of transactions could not be doubted solely based on group association. Case-Laws Income Tax Mon, 11 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446900