TaxTMI 
TaxTMI 
2021 (6) TMI 816
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....al Services Pvt. Ltd. without realizing the money in a fair and transparent manner and therefore AO was justified in treating the share capital along with share premium money received by the assessee as unexplained u/s 68 of the Act. He has further erred in making various observations which are irrelevant and contradictory to each other while sustaining the addition." 2. None has appeared on behalf of the assessee. It is noted that the appeal was filed way back in the year 2017 and the matter has been scheduled for hearing on multiple occasions. It is further noted that the ld. Counsel who was appointed by the assessee had since withdrawn from the case on 18.03.19 and thereafter, the Registry has tried to serve notice on the assessee on mu....
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....,60,88,000/- was made U/s 68 of the Act. The relevant findings of the AO are contained at para 4 of the assessment order which read as under:- "4.0 In view of the above it seems that all these things are make believe arrangements assessee Co. and M/s Emmthree Financial Services Pvt. Ltd and it appears that assessee company has been formed for special purpose vehicle on paper to introduce a huge sum of money as its capital from against false debts and investment. The company was formed in the year April, 2008 since then no business activity has been carried out. During the year consideration the assessee company has received share application money for a share of nominal value of Rs. 10 each per share at a premium of Rs. 790 each. Apparent....
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....ue of the share, earning per share and book profit of the company. As the company is not making any profit and is regularly making losses therefore there is no book profit etc. and the fair market value of its shares would be definitely below the face value of the share. It is also noticed that the share holder Co. M/s Emmthreee Financial Services Pvt. Ltd., New Delhi is also in loss on perusal of the return filed for A.Y. 2012-13. By no stretch of imagination it can be said that examination under section 68 of disproportionate share premium money hinges on the provision of section 56 (viib). Admittedly this sub section was inserted by the Finance Act, 2012. Simply because this section was inserted with effect from 01-04-2013 it cannot be....
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....para clearly throws light on the modus operandi adopted by the assessee company and certainly creates suspicion and doubts as regards the genuineness and reasonableness of the alleged transactions. In the light of the analysis of the documents furnished by the assessee in this regard and also in view of the discussions made in the above forgoing paras it is held that the assessee had failed to discharge the creditworthiness and genuineness of the transactions. For the reasons as discussed above the share capital along with premium is held to be unproved and unexplained. Therefore , an addition of Rs. 2,01,100/- towards share application money and Rs. 1,58,89,900/- towards share premium are hereby made invoking provisions of section 68 o....
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....ices Pvt. Ltd. also involves properties transfer to the appellant company. 6. That there are 3 key players involved in the transaction of certain property assets during the year under consideration i.e M/s Emmthree Services Pvt. Ltd., M/s Aditya Infrarealtors Limited and M/s A P Constructions. 7. That there is an assignment deed signed on 30/03/2012, between M/s Emmthree Services Pvt. Ltd. as Assignor and M/s Aditya Infrarealtors .Ltd. as assignee, when the assignor has passed on property worth Rs. 1,60,88,493/- to the assignee. 8. That there is another assignment deed signed on 31/03/2012 between M/s Aditya Infrarealtors Ltd. as assignor and M/s A P Constructions where the same property assets were assigned to M/s A P Constructions b....