Dismissing the appeal of the revenue, the Tribunal held that ; Share application money cannot be treated as unexplained credit if the AO does not make any investigation on the documentary evidences filed by the assessee or ask for the production of the investors for examination u/s 131 or if adverse material is found during search to prove that share application money is bogus or an arranged affair of the assesse..( ITA No. 453/del/2016, dt. 01.01.2018)(AY. 2012-13)
ACIT v. TRN Energy Pvt. Ltd.( Delhi)(Trib) ; www.itatonline.org
S. 68: Cash credits- Share application money – Addition cannot be made as cash credits unless the AO does not make any investigation on the documentary evidence filed by the assessee or asking for production of the investors .[ S. 131 ]