TaxTMI 
TaxTMI 
2023 (6) TMI 1112
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....the 'Act'). 2. The assessee in this appeal has taken the following grounds of appeal: "1. For that on the facts and in the circumstances of the case, the impugned appellate order confirming the order passed by the Ld. A.O. is unjustified, perverse, arbitrary and bad in law. 2. For that on the facts and in the circumstances of the case, the Ld. CIT(Appeals) was vehemently wrong and unjustified in confirming the addition made by the Ld. A.O. amounting to Rs.1,65,00,000/- u/s. 68 of the Income Tax Act, 1961 without finding any infirmity in the submission made by the appellant in regard to nature and source of cash credit. The addition is uncalled for and should be deleted. 3. For that on the facts and in the circu....
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....the director of the assessee company for recording of statement to enquire into real facts behind the raise of share capital of the assessee company and also asked to assessee to furnish the following details: "1. Address proof of your company. Please produce any utility bill like electricity bill,water bill etc. as evidence. 2. Net Worth of the company for the A.Y. 2012-13. 3. Documentary evidence of source of investment in share. 4.The bank statement of your company alongwith books of accounts for F.Y. 2011-12i.e. for A. Y. 2012-13. 5. Your photo identity and residential proof. 6. Your income tax return alongwith P/L account & Balance Sheet and bank statements for the A.Y. 2012-13. ....
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....the Assessing Officer, the Assessing Officer, considering the facts on the file and applying certain judicial decisions, held that the assessee had failed to prove the identity and creditworthiness of the share subscriber and genuineness of the transaction including the justification of high premium received by the assessee during the year. He, therefore, made the impugned addition of share capital along with share premium amounting to Rs.1,65,00,000/- holding the same as unexplained income of the assessee by passing ex parte order/best judgment assessment order u/s 144 of the Act. 6. Being aggrieved by the above order of the Assessing Officer, the assessee preferred appeal before the CIT(A). Before the ld. CIT(A), the assessee claimed t....
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....ted profit and loss account has been analysed, in detail, as discussed above. The company has not reported any substantial income as per their Income Tax Returns. The Hon'ble Ahmedabad Tribunal in the case of MAP Steels (India) Pvt. Ltd in ITA. No: 411/AHD/2015 has discussed the ingredients of a Shell Company as follows: "Securities Act Rule 405 and Exchange Act Rule 126-2 define a Shell Company as a company, other than an asset-backed issuer, with no or nominal operations; and either: • no or nominal assets; • assets consisting of cash and cash equivalents; or • assets consisting of any amount of cash and cash equivalents and normal other assets." It is observed from the perusal ....
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.... 990/- or 1990/- or others. (iii) The share applicant is a group company of the appellantcompany. (iv) The share applicant has not issued any shares in the yearunder consideration at premium. (v) The appellant company has not invested the amountreceived in any other companies in the year underconsideration. (vi) The director of the appellant company is a renowneddoctor and not a layman as in other shell companies. (vii) The appellant company is having turnover of Rs.15,67,19,802/- as compared to other shell companieswho have negligible amount of turnover. (viii) That even the turnover of the investor company was about 12,00,000/-. (ix) That the source of the funds of the investo....