2025 (2) TMI 982

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....any as eight grounds. The gist of grounds raised in appeal is ad under: (i) In ground no. 1 and 2 of appeal, the assessee has assailed addition of Rs. 3,30,00,000/- u/s. 68 of the Income Tax Act,1961(hereinafter referred to as 'the Act') (ii) Ground no. 3 and 4 of appeal are in respect of addition of Rs. 61,00,000/- u/s. 69A of the Act on account of cash deposits in cash credit loan account. (iii) Ground no. 5 of appeal, the assessee has assailed addition of Rs. 40,000/- on account of alleged difference in loan account. (iv) Ground no. 6 & 7 of appeal are in respect of disallowance of Rs. 16,82,240/- on account of depreciation on plant & machinery. (v) Ground no. 8 of appeal is general in nature.....

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....round that there is no such plant and machinery, no addition was warranted in respect of share capital and share premium. The AO and the CIT(A) should either have believed entire statement made by the assessee or should have rejected statement in whole. He finally submitted that in facts of the case, no addition on account share capital and share premium could have been made by the AO. To support his contentions, he placed reliance on the following decisions to contend that where the balance sheet was window dressed for obtaining higher banking facilities, no addition could have been made under the provisions of the Act: (i) DCIT vs. M/s Galss Tech India, ITA No. 6241/2017, dated 25.03.2022 (Del.); (ii) ITO vs. Zexus Air S....

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....banks. The banks confirmed that the details of bank accounts were not genuine. Even confirmations from the so called subscribers and the statement of their bank accounts were found not to be genuine. Hence, the AO made addition of share capital and share premium of Rs. 3.30 crores u/s. 68 of the Act. During First Appellate proceedings, the Chartered Accountant of the assessee Shri Saurabh Bhardwaj filed an affidavit before the CIT(A) stating that to secure higher bank credit facilities, the balance sheet of company was window dressed Rs. 3.30 crores was added on both sides of Balance Sheet. On liabilities side Rs. 3.30 crores was increased on account of share capital and share premium and on the assets sides equal value of plant and machine....