Section 68, 69, 79 of Income Tax Act, 1961— In the instant case, revenue is in appeal against the order of CIT. Revenue contends during the course of hearing that the CIT(A) has erred in law and on facts in deleting the impugned unexplained share application money addition rightly made in the course of assessment since the assessee failed to satisfy the three relevant parameters of identity, genuineness and creditworthiness of thereof.

Held that—We find no merit in Revenue’s instant former grievance. It has come on record that impugned sum has come from assessee’s group entity M/s. Neon Healthcare & Research Institute Limited involving three components of cheuqe, medical equipments supply and pathological tests conducted involving sum of Rs. 68,50,000/-,6,00,00,000/- and Rs. 3,35,500/-.

We conclude in these facts that the CIT(A) has rightly deleted the impugned unexplained cash credits/share application money addition of Rs. 7.02 crores.

We notice herein as well that assessee’s shareholders to the extent of 51% of its stake i.e M/s. XL Enterprises and M/s. Neon Health Care had admittedly held 27.34% and 47.73% of its stake in preceding assessment year and 26.02% and 53.87% in the impugned assessment year; respectively. Coupled with this, the CIT(A) has also held that hon’ble apex court’s decision (supra) settled the law long back that section 79 of the Act does not apply on brought forward losses on account of depreciation. We therefore affirm the CIT(A)’s findings for this latter issue as well.[D.C.I.T, CIR-12 (2) , KOLKATA VERSUS P.N. MEMORIAL NEURO CENTRE & RESEARCH LTD.][2019] 17 ITCD Online (12) [ITAT KOLKATA]