2023 (8) TMI 36

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....appeared on behalf of the assessee nor was any application seeking adjournment filed. From the perusal of the record, we find that the notice of hearing sent to the assessee at the address mentioned in Form no.36 has been returned unserved by the postal authorities with the remark 'not known/left', despite the fact that there is no change in the address of the assessee as mentioned in orders of lower authorities. Therefore, in view of the above, we proceed to dispose off the present appeal ex-parte, qua the assessee after hearing the learned Departmental Representative ("learned DR") and based on the material available on record. 3. In its appeal, the assessee has raised the following grounds:- "1. On the facts circumstances of the c....

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....s concealed nor any inaccurate particulars were furnished. 6. The appellant craves leave to add, alter, modify and delete all or any of the aforesaid grounds of appeals on or before the date of hearing." 4. We have considered the submissions of the learned DR and perused the material available on record. The brief facts of the case are that the assessee is a company and filed its return of income on 11/08/2012 declaring a total income of Rs. 1349. The return filed by the assessee was initially processed under section 143(1) of the Act. Subsequently, on the basis of information received from DGIT (Investigation), Mumbai as well as the Registrar of Companies, Mumbai that the assessee has invested/purchased shares at a premium of Rs. 10,000....

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....estment and added the same to the total income of the assessee. 5. During the proceedings under section 147 of the Act, the assessee was also asked to furnish details/documents/information to explain the nature, source, and genuineness of the transaction involving the receipt of share application money of Rs. 7,93,50,000. The AO also issued notices under section 133(6) of the Act to the share applicants to prove the nature, source, and genuineness of the transactions involving share application money received. However, till the finalisation of the assessment proceedings, no submission was received from the share applicants in response to the notice issued under section 133(6) of the Act. The AO, vide assessment order, held that since the a....

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....come of Rs. 8000. Further the AO also found the assessee to be having very weak financials, which cannot lead to investment to an extent of Rs. 7,93,50,000 by any prudent businessman. Accordingly, the AO treated the assessee to be a shell company, which is used to launder money as reflected in the books of account. Further, as noted above, the assessee failed to substantiate the huge investment of Rs. 13,19,00,000 in M/s Parvesh Construction Ltd. by purchasing shares at a premium of Rs. 10,000 per share having a face value of Rs. 100 of a loss-making company. Therefore, in the absence of any contradictory material being available on record to controvert the aforesaid findings recorded by the lower authorities, we are of the considered view ....