2025 (6) TMI 886

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....round No. 1 is general in nature, which does not require any adjudication. 3. The issue raised in Ground No. 2 is against the confirmation of addition of Rs. 2,21,93,720/- as made by the ld. Assessing Officer by making two additions, i.e. (i) Rs. 1,90,00,000/- in respect of share capital/share premium and (ii) Rs. 31,93,720/- in respect of trading losses under section 68 by treating the same as unexplained cash credit. The assessee has raised the issue separately in Grounds No. 4 & 5 of this appeal qua the above two amounts. 4. The facts in brief are that the assessee filed its return of income on 29.09.2012 declaring loss of Rs. 1,51,081/-. The case of the assessee was stated to be assessed under section 143(3) of the Income Tax Act on 2....

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....k Exchange for procuring the details of assessee in respect of the transactions of the scrip of Scan Steel Limited, which were duly supplied. The assessee also filed necessary evidences comprising the share purchase documents along with Demat account, copy of Bank statement before the ld. Assessing Officer. The ld. Assessing Officer thereafter discussing the records submitted by the assessee as well as details from Bombay Stock Exchange and statement recorded under section 132(4) of Shri Naresh Jain concluded that the losses towards purchase and sale of scrip of Scan Steel Limited amounting to Rs. 31,93,720/- were bogus and fictitious and accordingly the same was disallowed and added to the income of the assessee. 5. In the appellate proce....

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....025". 6. It is apparent from the above that the Department was directed to submit the proof of service of the order passed under section 143(3) of the Act and the case was posted for hearing on 18.02.2025. However, on that date, the Bench did not function and the same was adjourned to 27.02.2025. However, on that date too, the Department did not furnish any evidence to prove the service of the assessment order on the assessee and then Bench decided to hear the appeal on the premise that the Department has nothing say on this issue. Even the ld CIT(A) has not commented on the non-service of order despite the same specifically raised by the assessee. 7. Considering the facts and circumstances of the issue, we are of the considered view tha....

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....wledgment, Master Data from Portal of Ministry of Corporate Affairs, Memorandum of Association, Article of Association in respect of the assessee. All the contribution to the share capital has been made through banking channel. The assessee-company has proved the identity of all the investors, their creditworthiness and genuineness of the transactions of receipt of share capital and share premium. Even source of the source amount of the shareholder company has been produced before the ld. Assessing Officer. We note that the assessee has discharged its burden to prove by furnishing all these evidences and ld. Assessing Officer without pointing out any defect or deficiency in the said documents made the addition, which is incorrect in the eye....