ORDER

Per Rajesh Kumar, Accountant Member:

The present appeal has been preferred by the Revenue against the order dated 10.11.2014 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2010-11.

2. The only ground raised by the Revenue is against the deletion of addition of Rs.4,83,50,000/- by the Ld. CIT(A) as made by the AO towards share application and share premium received by the assessee during the year.

3. The ground is reproduced as under:

"The Ld. CIT(A) has erred in deleting the addition of Rs. 4,83,50,000/- claimed to be received as share application and share premium money by assessee, ignoring the factual finding by the AO that neither the identity of investors nor the creditworthiness of investors nor the genuineness of the transaction is proved.

The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the AO be restored.

The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary.”

4. The facts in brief are that the assessee filed the return of income on 15.10.2010 declaring an income of Rs.10,38,75,710/- and book profit under section 115JB of the Act at Rs.10,97,76,007/-. The return was processed under section 143(1) of the Act. Thereafter, the case of the assessee was selected for scrutiny and statutory notices were duly issued and served upon the assessee. The assessee is engaged in the business of construction and engineering. During the course of assessment proceedings, the AO observed that during the year, the assessee has raised share capital to the tune of Rs.4,83,50,000/- comprising 9,67,000 equity shares issued of face value of Rs.10/- each at a premium of Rs.40/-. Accordingly, a notice under section 142(1) dated 16.07.2012 was issued to the assessee calling upon to furnish the various details concerning the said transactions. The assessee filed before the AO the necessary details which are given in para 4.2 of the assessment order comprising the details of source of income of the investor companies and their nature of business, confirmations of transaction from the investors, balance sheets of the investors along with MOA and IT returns, copies of bank statements evidencing the payment received through account payee cheques and banking channels, bank statement of the investors evidencing the investments made in the assessee company. The assessee also submitted before the AO that the assessee is an old company and has been doing business and showing a consistent growth in the business and there were reserves as on 31.03.2009. It was also stated that the valuation of share was based upon DCF calculation at that time and copy of the same was also submitted before the AO besides assessee filing share allotment forms, proofs of delivery of shares through courier, board resolutions, share certificates etc. The assessee raised the share application money from the following parties:-