TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 1213
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....ncome Tax Appellate Tribunal is right in sustaining the order of the CIT (Appeals) who confirmed the order of the assessing authority treating the entire share capital of the assessee/appellant as its income without conducting any enquiry in that regard." One of the two issues decided against the assessee, in respect of which this appeal is field, is whether the Assessing Officer (for short, 'A.O.') was correct in treating the sum of Rs. 48,58,000/- as the assessee's income from undisclosed sources. The assessee has taken the stand before the A.O. that the said money was collected through share capital from 464 persons. The A.O. has given the assessee an opportunity of submitting books of accounts, vouchers and confirmation letters of the....
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....n the assessee to satisfy the A.O. that the amount found as cash credit is not chargeable to income tax as the income of the assessee of the previous year and that notwithstanding a number of opportunities presented to the assessee by the A.O., the former failed to avail such opportunities and produce any material whatsoever to satisfy the A.O. in that regard. She has also submitted that except furnishing the names of the persons who allegedly contributed to the share capital, not even their addressees have been furnished and no attempt whatsoever was made by the assessee to secure statements of the said persons. She has further submitted that the assessee has not filed any books of accounts or vouchers proving the receipt of money from the....
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....ties. Except submitting a list of the persons from whom share capital was allegedly collected, no other material, such as books of accounts, vouchers, receipts or bank statements etc., was produced. A perusal of the list during hearing shows that except in a very few cases, even door numbers of the persons shown in the list have not been furnished. In Hindusthan Tea Trading Company Limited (3rd supra), the High Court of Calcutta held that the extent of the power of the A.O. while considering the material produced by the assessee is very wide and that the A.O. is empowered to lift the corporate veil and examine the real nature of the transaction and in the process, it may exercise its power of examining the material and it may require the as....