2017 (3) TMI 1544

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....f industrial and speciality oils. The assessee is a public limited company. The main object of which is to produce industrial oils and hydrocarbon of various natures. 4. During the course of the scrutiny assessment proceedings, the A.O. noticed that the authorized share capital of the assessee has been increased to 3 crores as against Rs. 1 crore shown in the immediately preceding assessment year. The assessee was asked to furnish details of share application money along with PAN, Name of shareholder, amount, date, mode of payment with cheque no. and name and address of the branch of the bank. 5. Vide a letter dated 10.11.2004; the assessee filed the details of share application money. On perusal of the details filed by the assessee, the ....

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....ld be in the knowledge of the assessee company and, therefore, it is not impossible to locate the share applicants and the assessee failed to establish even the identities of the share applicants. The ld. CIT(A) further observed that the cheques issued were in serial nos. from 00490, 200503 of the same bank. The ld. CIT(A) was of the firm belief that it would be farfetched that applicants located in different villages would issue cheques from the same cheque-book. The ld. CIT(A) was finally convinced that the A.O. failed to discharge the initial burden cast upon it by the provisions of Section 68 of the act and accordingly confirmed the additions made by the A.O. 10. Aggrieved by this, the assessee is before us. 11. The ld. counsel for th....

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....accounts in the form of share application money. 15. Our view is fortified by the fact that the alleged share applicants who are agriculturists have applied for the shares of an unlisted company from which they are not going to derive any benefit whatsoever in future by the appreciation in the market value of the shares. 16. In our considered opinion, in the context of the preponderance of probabilities, the impugned share application money is not genuine and the assessee has grossly failed in discharging the initial burden cast upon it by the provisions of Section 68 of the Act. We, therefore, decline to interfere with the findings of the First Appellate Authority. 17. Before parting, the ld. counsel for the assessee placed reliance on ....