2022 (9) TMI 250

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....12-13. 2. Notice of hearing of the appeal was sent to the assessee by physical mode through RPAD as well as electronic form at the e-mail address of the assessee. However, no one has put in appearance on behalf of the assessee. The registered envelope containing the notice has been received back with the remand of the postal authority dt. 08/08/2022 "refuse". Therefore, it is evident that the assessee is no more interested in pursuing his appeal. Even a perusal of the impugned order of the ld. CIT(A) reveals that the assessee did not appear before the ld. CIT(A) also despite several opportunities and the ld. CIT(A) has passed an ex-parte order. In view of this, we proceed to adjudicate this appeal of the assessee on merit after hearing t....

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....n relief prayed for. 8. For that the appellant craves leave to add, alter or withdraw any ground/s of appeal on or before hearing of the appeal." 4. A perusal of the above grounds of appeal would show that the assessee is aggrieved by the action of the lower authorities in making/confirming the addition of Rs.5,38,16,000/- on account of share capital and share premium received by the assessee. 5. The Assessing Officer during the assessment proceedings noted that the shareholders fund has been shown as reinvested in different Private Limited Companies. That, both receiving of share application money and investing in other Private Limited Companies has been done through chain of transactions of share allottee companies, assesse....

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....Officer noted as under:- i) They are in their initial years of operation ii) Are basically investment companies iii) Income tax returns show a nominal income/loss iv) No business activity v) investor companies received share capital with huge premium was in turn invested in the assessee company and similar other companies as well. 6. The Assessing Officer further observed that in line of the above facts it was important to understand as to how investment that too at huge premium were given and whether the applicants had their own profit making apparatus to invest and further whether the transactions in the bank statements were merely for rotating money or the transactions were commensurate wit....