2025 (6) TMI 1689

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....enue is against the deletion of addition of Rs. 1,97,00,000/- by Ld. CIT(A) as made by the Assessing Officer u/s. 68 of the Act. 3. The facts in brief are that the assessee filed its return of income on 26.09.2012 declaring total income of Rs. Nil. Thereafter, the case of the assessee was selected for scrutiny through CASS. Accordingly, notices u/s. 143(2) and 142(1) were issued and served on the assessee. During the course of assessment proceedings, the Assessing Officer observed that the assessee has received share capital including share premium of Rs. 1,97,00,000/- comprising of fresh capital of Rs. 20,60,000/- plus fresh premium of Rs. 1,76,40,000/- during the impugned financial year. The assessee filed before the Assessing Officer ....

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.... share subscribers, summons u/s 131 of the I.T. Act'1961 were issued to the Directors of the share subscriber companies. It is noted that there was compliance to these summons, as a director of six share subscribers companies and one individual subscriber appeared out of total nine (9) share subscribers whose deposition were recorded under oath. The A.O noted that the assessee company was incorporated in A.Y.2012-13 and each share was purchased by the individual subscriber /subscriber companies at the face value Rs. 10/- along with the premium of Rs. 90/- per share. The A.O further observed that all the share holders of the newly incorporated assessee company justified their investment in the assessee company on the rationale that the asses....

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....ge and travel accessories, with around 6000 active sales outlets and having a turnover of about 130 Million Euro as of 2010. It holds second place in the global luggage market, behind Samsonite. Delsey SA had presence in India since 2001 through a distribution arrangement with Piramal- owned VLP industries. Considering the fact that the luggage market in India was registering growth rate of 12-15 percent every year and was estimated to be about Rs 2,500 crore, they felt that their brand needed a more strategic involvement to establish its premium positioning and expansion of its retail footprint in India. Consequently, in 2011 they decided to snap their 10 years long association with VIP and form a Joint Venture with local Indian P....

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....se for the A. Y 2016-17 during which the AO had enquired into details of share allotment as during the said AY, it had issued shares to same allottees, and the A.O, had on investigation, considered the share allotment as genuine. Therefore, the Department has also subsequently examined and affirmed the genuineness of the transaction and identity and creditworthiness of the share applicants. Taking all the above facts and findings into consideration, it is held that treatment by the A.O of the sum of Rs. 1,97,00,000/- being the amount of share capital/premium issued by the assessee company as unexplained cash credit u/s 68 for the A.Y 2012-13 is unjustified. Accordingly, the addition so made is deleted, and grounds 1 to 3 of appeal ....