2011 (7) TMI 661

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....editors and creditworthiness of the share applicant as well as creditors and genuineness of the transactions and made the additions of Rs. 28,15,000/-. Likewise, Rs. 2,25,000/- which was given by Mr. G.L. Sharma, father of the Managing Director of the company, the Assessing Officer took the view that the creditworthiness of Mr. G.L. Sharma was not proved and thus made additions of Rs. 2,25,2000/- as well on account on unexplained cash credit under Section 68 of the Income-Tax Act. In fact Mr. G.L. Sharma had also subscribed to the share capital in the sum of Rs. 12,50,000/- which was part of the addition made by the Assessing Officer insofar as share application money is concerned. The appeal of the assessee was Bartly allowed. The CIT (A) ....

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.... has no unexplained money which could have been routed through Shri GL Sharma. It has received the share application money prior to the commencement of the commercial production. Apart from the above assessee has produced a document alleged to be will of Shri GL Sharma. It exhibits the distribution of property amongst the worth family members. He has agricultural land in the past and house which means that he is a man of means and he distributed lots of assets among the beneficiaries on account of natural relationship. His creditworthiness in a way cannot be doubted. Therefore, we delete the addition of Rs. 12,50,000/- confirmed by the CIT (Appeals)." 2. Even with regard to other share applicants, the ITAT has held that the assessee has ....