2022 (10) TMI 315

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....), Kolkata under section 147 read with section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the 'Act') dated 20.12.2019 for assessment year 2012-13. 2. Grounds of appeal relate to the addition of Rs. 10,00,000/- received from shareholders towards allotment of equity shares, which has been added under section 68 of the Act. 3. Assessee has also challenged the jurisdictional aspect of the assessment by taking additional grounds filed on 14.03.2022. In the course of appellate proceedings before the Tribunal, ld. Counsel for the assessee submitted that the additional grounds of appeal are not pressed. Accordingly, additional grounds submitted by the assessee challenging the jurisdictional issues under section 147 are....

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....cause letter dated 16.12.2019 was also issued to the assessee to explain with corroborative evidences, the basic three parameters noted above, in respect of the transaction of Rs. 10,00,000/-. In this respect, ld. Assessing Officer noted that no compliance was done, both by the investor company as well as by the assessee and thus concluded to hold the amount of Rs. 10,00,000/- as unexplained cash credit under section 68 of the Act and accordingly made the addition. Aggrieved, the assessee went in appeal before the ld. CIT(Appeals). 5. Ld. CIT(Appeals) noted that in respect of meeting the compliance towards three basic parameters, i.e. identity, genuineness of transactions and creditworthiness of share applicants, assessee without furnishin....

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.... law is upheld CIT v Kwick Travels, SLP(Civil) No. 15056 of 1992: (1993) 199 ITRfSt.) 85-86(SC). On the basis of above position of law which is applicable in the instant case for the reason the credits being issued share capital of the company, the AO had acted beyond power in treating the credit as income of the assessee without proving the share holders to be non existent/bogus. 4.5. In respect of point mentioned in 3.6, the appellant states that the AO computed other source income Rs. 4,28,106/- straight without mentioning in the order the reason and circumstances that binds her/him to compute Income under Other sources on Gross figure without considering related expenses and inter/intra head adjustment From this it is clear that the....

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....s a meagre amount of Rs. 1,020, who has charged a premium of Rs. 490/- on the face value of Rs. 10/- for issuing its shares. He also referred to the Bank Statement placed at page 31 of the paper book to point out that there is a negative balance of Rs. 9,41,306.98 on 01.10.2011 in the Bank Statement of the investor company from where the amount of 10,00,000/- rupees has been paid to the assessee against issue of shares and thus submitted that the addition made is ought to be sustained. 9. We have heard the rival contentions and perused the relevant material placed on record. We note that in the peculiar set of facts in the present case before us, relevant and detailed enquiry to establish the basic three parameters of identity, genuineness....