2022 (10) TMI 1029

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....he case was called for, none appeared on behalf of assessee. A perusal of file shows that notice of hearing was sent I, therefore, deem it proper to adjudicate the appeal on merits ex parte assessee on the basis of material available on record and with the assistance of the ld. DR. 3. The assessee has raised the following grounds of appeal for the AY 2012-13:- 1. That the order of the Ld. Commissioner of Income Tax (A) is bad in law and on facts of the case. 2. That the Ld Commissioner of Income Tax (A) erred in sending all the notices at address other than that stated in Form 35 (The Appeal Memo). 3. That the Ld. Commissioner of Income Tax (A) erred in confirming the view of Ld. Income Tax Officer "no actual b....

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....le at page-2 of the AO's order. The ld. AO found that there was no compliance to these notices issued to the parties in respect of serial nos. 1 to 3 and in respect of remaining parties the notices were undelivered. The ld. AO was not satisfied with the genuineness of share capital and share premium/security premium received by the assessee company. He accordingly completed assessment order u/s. 143(3) of the Act making addition u/s. 68 of the Act for unexplained share capital and security premium totalling to Rs. 32, 51,00,000/- and also disallowed Rs. 22,670/- u/s. 14A of the I.T Act, 1961 and Rs.1,303/- u/s. 115JB. 5. Aggrieved, the assessee preferred appeal before the ld. CIT(A) only challenging the impugned addition made u/s. 68 of ....

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.... The assessee company has been able to procure share capital at Rs. 2,57,00,000/- and security premium on this share capital at Rs. 29,94,00,000/- totalling to Rs.32,51,00,000/-. It certainly creates doubt about the genuineness of the alleged transaction as to how a new company with no asset has been able to procure share premium of Rs. 29.94 cr. and share capital of Rs. 2.57 cr. The company having this magnitude of share capital and share/security premium must be having proper business set up. Statutory notice u/s. 143(2) of the Act duly served upon the assessee and when the case of the assessee was selected for scrutiny the assessee's authorised representative time to time appeared before the ld.AO. But the assessee failed to produce the ....