AI Drafter 
TaxTMI 
TaxTMI 
2017 (3) TMI 43
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on issue of fresh capital introduction of Rs. 50 lacs during the year are not perverse and contrary to evidence on record when such amounts were not found credited in books of the previous year and could not be added as income u/s 68?" It is the case of the assessee that during original assessment proceedings for the assessment year 2008-09 a query had been made by the Assessing Officer on 29.07.2010 to the following effect: "9. Details of share application money/share capital raised during the year giving complete address & asstt. Particulars of the previous concerned. Please also furnish confirmed copies of A/cs there from. Also give details of shares allotted, if any. Please also furnish evidences regarding identity, genuine....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the assessee company vide order sheet entry dated 16 November 2010, wherein, the details regarding the issuance of share capital were sought to be filed. In response to the said query the assessee vide reply dated 23.11.2010 and 07.12.2010 (copy of the replies are enclosed herewith as Annexure 3), filed copy of form 2, list giving names and adress of all shareholders along-with the confirmations from all the shareholders regarding the purchase of shares by them. It was also apparent from the balance sheet as well as from the submission dated 07.12.2010 that the fresh capital was issued against the share application money of Rs. 54,00,000/- already received during earlier years and only a sum of Rs. 10,000/- was received as fresh amount dur....
X X X X Extracts X X X X
X X X X Extracts X X X X
...." While passing the order under Section 263 of the Act on 22.03.2013, it appears that the Commissioner of Income Tax was of the opinion that there were certain unexplained cash credits and considering that issue along with the issue of introduction of share capital, a finding has been recorded to the following effect: "As regards (b) one of the main reasons for selection of the case for scrutiny was fresh introduction of share capital of Rs. 50 lakhs there also the situation remained almost similar or identical or what has been stated in above para related to alleged unsecured loans: Gaurav Kumar HUF 1,75,000 (share capital introduction) GTI 115090/- Bank A/c Balance 145000/- (10.3.2008) In ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ground of ambiguity on the issue of introduction of share capital. The Tribunal again appears to have committed the same mistake as the Commissioner, and has not returned its finding on the objection raised by the assessee that the amount of share capital of Rs. 50 lacs had been introduced in the books of account a year earlier to the previous year relevant to the assessment year 2008-09. We have heard Shri Suyash Agrawal, learned counsel for the appellant and Shri Shubham Agrawal, learned counsel for the department and have also perused the record. It has not been disputed that the objection or explanation filed by the assessee in response to the notice under Section 263 of the Act has not been considered at all by both the autho....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year. The phrase "previous year" is very relevant. This indicates that the cash credits which has not been found satisfactorily explained can be added in the income of the assessee of that previous year in which those cash credits were recorded in the account books. " Therefore, it appears to us that it was necessary for the Commissioner and the Tribunal to have examined the issue in this light and to reach their conclusion based on the objections so raised and ev....