TaxTMI 
TaxTMI 
2017 (3) TMI 74
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....the action of the Income-tax Officer 2(3)-4, Mumbai (hereinafter referred to as the Assessing Officer) in issuing notice under section 148 of the Act. The appellants contend that on the facts and in the circumstances of the case and in law, the issue of notice under section 148 is bad in law and needs to be quashed. 2. The CIT(A) erred in confirming the action of the Assessing Officer in making an addition under section 68 of Rs. 15,00,000, being amount received on account of allotment of share capital. The appellants contend that on the facts and in the circumstances of the case and in law, the CIT(A) ought not to have confirmed the impugned addition made by the Assessing Officer inasmuch all details of the share applicants have been....
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....d truly all material facts necessary for his assessment. 5. On merit of addition it was submitted that the assessee has furnished all the particulars with regard to share application money so received in support of the identity, genuineness of transactions of share application money. As par Ld. hear payment was received by account payee cheque. Learned AR further submitted that they requested the Assessing Officer to issue summons under the powers vested in him under section 131 of the Act and required them to furnish all the necessary details required to conclude the genuineness of the transactions and to furnish the bank statements from where they have issued the cheques to the appellants and further requested to make them available for ....
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....72 Taxman 44 (SC)] 3) CIT v. Value Capital Service P. Ltd. (order dated 25/04/2008) 9. On the other hand, Ld. DR contended that as par statement of Shri. Ashok Kumar M/S Bhagwan Krishan Investment & Trading Company Pvt. Ltd. has issued accommodation cheque, therefore AO has correctly made addition by declining share capital so received by the assessee. 10. We have considered revival contentions and gone through the orders of the authority below and also deliberated on the judicial pronouncement referred by lower authorities in their respective of orders as well as cited by AR and DR during the across of hearing before us. From the record we found that in this case, assessment was completed u/s.143(3) on 31.12.2007 assessing the total Inc....
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....as received share application money by cheque and no cash was given to Bhagwan Krishan Investment & Trading Co Pvt Ltd. The fact that no amount of cash was ever given to the company which is proved by the fact that the bank account of the investor-company Punjab National Bank, Azadpur Branch, (which was also furnished to the Assessing Officer - shows that there is no such cash deposit in the bank account of the said company and that the amount of share application money is received out of sale consideration of old investments. 14. We also found that even after asking by the assessee the Assessing Officer has not issued any summons under section 131 or notice under section 133(6) to the Directors of Bhagwan Krishan Investment & Trading Co P....