2016 (6) TMI 965

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.... the assessee. The assessee has come up in appeal. The question formulated at the time of admission of the appeal on 6th June, 2007 reads as follows : "(a) Whether and in any event, the Tribunal was justified in law in upholding the addition of share capital to the extent of Rs. 8,77,500/- under section 68 of the Income Tax Act, 1961 on the basis of incomplete investigation made by the Assessing Officer and its purported findings in that behalf are arbitrary, unreasonable and perverse ? " The facts and circumstances of the case, briefly stated, are as follows : The assessment for the relevant year was completed on 31st March, 1986 under section 144, that is to say, best judgement assessment was made at a total income of Rs. 27,05,365/-....

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....e notice of the assessee by the assessing officer. The assessee replied by its letter dated 22.03.2002, contents whereof according to the assessing officer was as follows;- "...that this is not practicable and feasible for the assessee company to search, identify and produce the shareholders because the matter of 15 to 17 years back. He did not challenge facts of the case and draw backs informed to them. He argued that in view of decision of Hon'ble Delhi High Court in the case of CIT Vs.Steller Investment Ltd. 192 ITR 287 (Delhi) which held that, even if it be assumed the subscriber to the increased share capital were not genuine, under no circumstances could the amount at share capital be regarded as undisclosed income of the company. H....

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....IT (A) in his turn by an order dated 21.09.2005 arrived at the following conclusion; - "In view of above discussion of facts and material positions, I decline to agree in toto the contention of the appellant company that since the issue of equity shares was made to public at large with the approval of the appropriate authority and as listed by Calcutta Stock Exchange and also since the application and allotment money was directly deposited by the subscribers with the bankers and the whole share transaction money has to be treated as genuine. I am, therefore, of the view that it would be fair and just to accept the claim of the appellant company to the extent of the share allotment and the payment receipt although the shares were claimed t....

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....bunal were of the opinion that it could be said that he had been able to explain up to Rs. 9,90,000/-. It is not the case of the assessee that any piece of evidence adduced by the assessee was ignored either by the assessing officer or by the CIT(A) or by the learned Tribunal. It is only on the basis of the evidence adduced by the assessee that the view was taken by the CIT (A) that it could be said that the assessee had succeeded in explaining an aggregate sum of Rs. 9,90,000/-. The learned Tribunal concurred with the finding of the CIT (A). Therefore, the question of the view taken by the learned Tribunal being perverse or arbitrary does not arise. Mr. Khaitan, learned Senior Advocate relied upon a judgement of this Court in the case of (....