2025 (1) TMI 804

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....declaring taxable income at Rs. 13,930/- on 27.10.2016, the same was processed under section 143 (1) of the Income-tax Act, 1961 (for short 'the Act'). Subsequently, the case was selected for limited scrutiny through CASS for the reason that there are large share premium received during the year (applicability of section 56(2)(viib) of the Act). The statutory notices u/s 143(2)/142(1) alongwith questionnaire were issued on the assessee. In response, ld. AR for the assessee submitted relevant information through electronical mode. 3. During assessment proceedings, the Assessing Officer observed that assessee is engaged in the business of trading in Khal. On perusal of the balance sheet, he noticed that assessee has issued/allotted 12,000 ....

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....he company exists at the given address. In support of the above submission, assessee submitted a copy of assessment order for assessment year 2012-13. With regard to low income, assessee has submitted and relied upon the decision of Hon'ble High Court of Rajasthan in the case of CIT vs. ARL Infratech Ltd.. He further submitted that there is no direct or indirect relation with the assessee company and the share applicants. Therefore, it will not fall under the provisions of Section 68 of the Act. It was submitted that creditworthiness has to be verified from the financial statements. 4. After considering the submissions of the assessee, Assessing Officer rejected the same and observed that from the bank statement of the investor company, ....

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....enuineness of the transaction and also to establish the source of source. He submitted that the Assessing Officer has made the addition on the basis that assessee has failed to prove identity and creditworthiness of shareholder. He submitted that assessee has submitted bank details, bank statement and also assessment order for assessment year 2012-13 to prove the identity of the investor. Further, he submitted that as per the record of Ministry of Corporate Affairs, the abovesaid company is still showing with active status. He filed a copy of the company information from the record of ROC dated 27.05.2024. Further, he brought to notice page 155 of the paper book wherein the investor has filed income-tax return for Assessment Year 2016-17 an....

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....ddress supplied by the assessee based on the Inspector's report and after analysing the bank statement, he observed that the company does not have sufficient funds to make such investment in the assessee's company. Accordingly, he came to the conclusion that the identity and creditworthiness are not proved in the case of the assessee. After considering the detailed submissions made by the assessee, we observed that the day to day movement of the funds in the bank statement does not prove the creditworthiness of the company. However, it is brought to our notice that the investor has huge shareholders funds in its balance sheet which is placed at page 157 of the paper book and also brought to our notice that there are sufficient trading activ....

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....mpany Class of Company Private ACTIVE compliance ACTIVE Compliant Authorised Capital (Rs) 11,00,000 Paid up Capital (Rs) 1,00,000 Date of last AGM 28/09/2015 Date of Balance Sheet 31/03/2015 Company Status Active Jurisdiction   ROC (name and office) ROC Delhi RD (name and Region) RD, Northern Region Index of Charges 6/27/24, 1:34 PM Ministry Of Corporate Affairs - MCA Services No Records Found Director/Signatory Details Sr. No DIN/PAN Name Designation Date of Appointment Cessation Date Signatory 1 03189380 VIJAY PAL RAWAT Director 01/09/2010 - Yes 2 03180063 BHUSHAN GOEL Director ....