Section 68 of Income Tax Act, 1961— In the instant case, The assessee and Revenue have filed their instant cross-appeal against the order passed by CIT(A) restricting Assessing Officer’s action treating the former share application / premium amount of Rs. 326,50,000/- as unexplained cash credits u/s 68 to Rs. 75 lac only, in proceedings u/s 143(3) of act.

We make it clear first of all that there is hardly any dispute between the parties inter alia about the basic admitted fact of the assessee to have raised the impugned share application money from eleven related parties, the Assessing Officer having taken recourse to sec. 131/133(6) process in all of their cases, these investors having replied from the other end in support of the correctness of the share application money. The assessee’s eleven share applicants confirmed the assessee’s case by fling all necessary documentary evidence as well.

Held that— We take into account all the preceding factual and legal position to conclude that the Assessing Officer erred in treating the assessee’s share application / premium amount of Rs. 3,26,50,000/- as unexplained cash credits in entirety. The CIT(A)’s findings restricting the same to Rs. 75 lac only stand reversed therefore. The assessee succeeds in its corresponding former substantive ground whereas the Revenue fails in its sole grievance as well as its main appeal.[MODERN DALKHOLA FLOUR MILLS PVT. LTD. VERSUS DCIT, CIRCLE-2 (1) , JALPAIGURI AND (VICE-VERSA)][2019] 16 ITCD Online (34) [ITAT KOLKATA]