2023 (5) TMI 405

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....015. 2. Before us, none appeared on behalf of the assessee. On going through the records, we find that on the earlier dates of hearing, none had represented the assessee and adjournments were given to provide reasonable opportunity of being heard to the assessee. Shri Vijay Kumar, Addl. CIT represented the Department. The present appeal is by the department and we are inclined to adjudicate on the matter ex parte qua the assessee by taking assistance from the Ld. Sr. DR. 2. Grounds of appeal raised by the revenue are reproduced as under: "1) That on the facts and circumstances of the case and on Law Ld. CIT(A) has errred in granting relief to the assessee in respect of addition made u/s 68 of Rs.5,01,00,000/- by the AO for la....

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....the appellate proceedings, or, in the course of appellate proceedings." 3. From the perusal of the material placed on record, brief facts of the case are that assessee filed its return of income on 24.12.2013 reporting a total income of Rs.514/-. Case of the assessee was selected for scrutiny under CASS. Statutory notices were issued but were returned back with remark "Insufficient Address". Subsequently, notices were served by affixture. Ld. AO also issued notice on one of the directors Shri Amit Agarwal but it was also returned with the remark and "not known". Yet another notice was issued to the address of the another director, Shri Sanjoy Kumar Bajoria which according to the records with the Ld. AO was served but remained uncomplied.....

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....T(A) allowed the appeal of the assessee by noting that there was no infusion of cash for issue of shares and that the shares were issued by the assessee company for consideration other than cash in lieu of assessee making investment in shares in some other companies. The observations made by the Ld. CIT(A) by allowing the appeal of the assessee are worth noting and the same are reproduced as under: "6. In other words, no amount has been credited to the Books of Accounts of the assessee for purchase of shares. IT was adjusted against investments made. In other words, the share application was separate. Investment which had been made had been adjusted. The share capital was not issued on receipt of any cash. Shares were issued for co....

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....u of assessee company making investment any shares in some other company." 4.2. Ld. CIT(A) has drawn is conclusion basing on the decisions of Coordinate Benches and Hon'ble High Courts. 4.3. From ground no. 3 taken by the revenue, it has been contended that recording of receipts in the Balance Sheet of the assessee establishes the credit of the same in the books of account maintained by the assessee in the form of receipt of fresh capital including share premium during the year under consideration. 4.4. We also take note of the fact that Ld. AO could not make required enquiries in absence of the de tails and documents along with explanation which were sought from the assessee in respect of the claim that no fresh capital was introd....