AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 996
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....e has raised peripheral arguments in all other grounds of appeal. As far as charging of interest is concerned, it is a consequential in nature because charging of interest under section 234B is a mandatory aspect. Similarly challenge to initiation of proceedings under section 271(1)(c), it is a pre-mature in nature. Assessee has an independent remedy. Show-cause notice for imposition of penalty under section 274 of the Income Tax Act would be issued to it. In case penalty is imposed, then separate appellant remedy is provided. Hence this ground of appeal is also rejected. 4. Now we take the main ground of appeal, i.e. addition of Rs.11,04,51,450/-. Brief facts of the case are that the assessee has filed its return of income on 28.08.2012 declaring 'NIL' income. Its case was selected for scrutiny assessment and a notice under section 143(2) was issued and served upon the assessee. The ld. Assessing Officer has observed that assessee has raised fresh paid-up share capital of Rs.11,04,51,450/-, which includes share premium by issue of fresh share during the instant previous year. The ld. Assessing Officer straightway discussed position of law and then observed that assessee failed ....
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.... capital & premium claimed to have been received of Rs. 11,04,51,450/-. The assessee has claimed that the shares have been issued on premium to the following companies namely: (a) Mentor Insurance Brokers Private Limited. (b) Trendon Distributors Private Limited. (c) Navnidhi Commerce Private Limited. (d) Meghdoot Vanijya Private Limited. (e) Amritrashi Suppliers Private Limited. (f) Pradhan Dealers Private Limited. (g) Nishchaya Traders Private Limited. (h) Unitrenz Textiles Private Limited. The financials and the credentials and the business performance of each of the companies who have subscribed to the share capital and premium of the appellate company are discussed as follows: (a) Mentor Insurance Brokers Private Limited: (i) This company does not have any core business activity. The income from Operations during the financial year 2011-12 is loss of Rs. 3973. The income from operations i.e. from sale of goods and services in the last A. Yr. was NIL. The company had shown other income during the previous year of Rs. 16,419/-. The said figure in the last year was NIL. ....
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....he assessee company has reported a nominal income in the ITR. (e) Amritrashi Suppliers Private Limited: (i) The company is a Private Ltd Company incorporated on 22.03.2012 under the Companies Act, 1956. This company does not have any core business activity. The income from Operations during the F.Y 2011-12 is loss of Rs. 15,004/-. (ii) The assessee company has also not shown any core activity or business to justify issuance of shares at a substantial premium. The assessee company has reported a loss in the ITR. The total income as per computation of income is a loss of Rs. 15,004/-. The extent of operation does not justify the capacity of this company to pay such huge share premium. (f) Pradhan Dealers Private Limited. (i) The company is a Private Ltd Company incorporated on 20.03.2012 under the Companies Act, 1956. This company does not have any core business activity. The income from Operations during the F.Y 2011-12 is loss of Rs. 12,552/-. (ii) The assessee company has also not shown any core activity or business to justify issuance of shares at a substantial premium. The assessee company has reported a nominal income in the....
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....his case certain documents were filed before the AO however genuineness of the transaction could not be substantiated. Mere filing of documents before the AO does not absolve the assessee of its duty cast u/s 68. An assessee's duty to establish the source of the funds does not cease by merely furnishing the names, address and PAN particulars or relying on entries in the Registrar of company's website. The relationship of the assessee to the applicants should be at arm's length in such cases and this is what the appellant was required to establish. Also the concept of "shifting onus" does not mean that once certain facts are provided, the assessee's duties are over. If on verification, the information becomes false, unsatisfactory or unverifiable, the onus shifts back to the assessee. Therefore, the assessee was required to present himself before the AO for examination and verification of the documents. However, the assessee has avoided the same as the summons were not complied with. The onus to prove the three factum is on the assessee as the facts are within the assessee's knowledge. The details available reflect some paper work or documentation but genuineness, creditworthiness a....
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....ivate Limited AAHCM8012G 40000 (Rs. 1/-) 20000000 500 08 30.03.12 Amritrashi Suppliers Private Limited AAKCA2782P 30000 (Rs. 1/-) 15000000 500 09 30.03.12 Pradhan Dealers Private Limited AAGCP5008A 40000 (Rs. 1/-) 20000000 500 10 30.03.12 Nishchaya Traders Private Limited AADCN9262F 70000 (Rs. 1/-) 35000000 500 11 30.03.12 Trendon Distributors Pvt Ltd AACCT2786M 1600 (Rs. 1/-) 800000 500 12 30.03.12 Mentor Insurance Brokers Private Limited AABCM8132F 450 (Rs. 1/-) 225000 500 13 30.03.12 Unitrenz Textiles Private Limited AABCU3780H 2000 (Rs. 1/-) 1000000 500 It is observed that there is no justification for the high premium charged. The financials do not justify the premium changed. Moreover, the issue is squarely covered by the judgment of Hon'ble ITAT "C" Bench, Kolkata, in the case of ITO, Ward-5(3), Kolkata -vs.- M/s. Blessings ....