TaxTMI 
TaxTMI 
2022 (7) TMI 553
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....d. 4. The representatives of both the sides were heard at length, the case records carefully perused. 5. Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings, and on perusal of the financial statements, the Assessing Officer came to know that the assessee has issued 65,886 shares at premium, for total amount of Rs. 2,95,56,417/. 6. When called for, the assessee furnished the details of share application money and share holders which is as under: Sr. No. Particulars No. of shares issued @ 10 each Share Capital (Rs.) Share Premium @ 450 each (Rs.) Amount (Rs.) i) M/s Karda Traders (P) Ltd. 6666 66,660 29,33,040 29,99,700 ii) M/s Capative Equity Management (P) Ltd. 11111 1,11,110 48,88,840 49,99,950 iii) M/s Neat & Clean Infratech (P) Ltd. 5555 55,550 24,44,200 24,99,750 iv) M/s Movers Realtech (P) Ltd. 3333 33,330 14,66,520 14,99,850 v) M/s Shree Aeran Marketing (P) Ltd. 17000 1,70,000 74,80,000 76,50,000 vi) M/s Macro IT Systems (P) Ltd. 5555 55,550 24,44,200 24,99,750 vii) M/s Sai Infoweb (P) Ltd.....
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....lders have denied investment made in the assessee company, nor the documents placed could be disproved by the Revenue and, therefore, addition should be deleted. 17. Per contra, the ld. DR placed strong reliance on the orders of the authorities below and read the relevant part of the assessment order and the order of the ld. CIT(A). 18. We have given thoughtful consideration to the orders of the authorities below. It is not in dispute that the assessee has furnished complete details in relation to share applicant companies, their confirmations, Income tax particulars, bank statements and financial statements. The evidences include the following: i) Name and address of the investor; ii) PAN of the investor; iii) Income tax Jurisdiction of the investor; iv) Detail of amounts received and made of receipt, cheque no, date of cheque, amount of cheque; v) Confirmation by the investor company; vi) Share application form and share certificate; vii) Bank statement of the investor company; viii) Master dat from ROC online sites of the investor company showing them as active company; and ix) Acknowledgement....
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....le to the AO for his perusal, all the information contained in the statutory share application documents. In the case of private placement the legal regime would not be the same. A delicate balance must be maintained while walking the tightrope of Section 68 and 69 of the IT Act. The burden of proof can seldom be discharged to the hilt by the assessed; if the AO harbours doubts of the legitimacy of any subscription he is empowered, nay duty-bound, to carry out thorough investigations. But if the AO fails to unearth any wrong or illegal dealings, he cannot obdurately adhere to his suspicions and treat the subscribed capital as the undisclosed income of the Company." XXX XXX 15. At this stage, we would like to refer to the judgment of the Bombay High Court in the case of CIT Vs. M/s Creative World Telefilms Ltd. (in ITA No.2182 of 2009 decided on 12.10.2009). The relevant portion of this order is reproduced below: "In the case in hand, it is not disputed that the assessee had given the details of name and address of the shareholder, their PA/GIR number and had also given the cheque number, name of the bank. It was expected on the part of the Assess....
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....urrent findings of fact. While doing so, the legal position contained in Section 68 of the Act was explained by the Supreme Court by assessing that a bare reading of Section 68 of the Act suggests that (i) there has to be credit of amounts in the books maintained by the assessee; (ii) such credit has to be a sum of money during the previous year; and (iii) either (a) the assessee offers no explanation about the nature and source of such credits found in the books or (b) the explanation offered by the assessee, in the opinion of the AO, is not satisfactory. It is only then that the sum so credited may be charged to income tax as the income of the assessee of that previous year. The expression "the assessee offers no explanation" means the assessee offers no proper, reasonable and acceptable explanation as regards the sums found credited in the books maintained by the assessee. The opinion of the AO for not accepting the explanation offered by the assessee as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on the record. The opinion of the AO is required to be formed objectively with reference to the material on ....