TaxTMI 
TaxTMI 
TaxTMI 
2024 (4) TMI 1293
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.....2012 reporting total income at Rs.770/-. Assessee is engaged in real estate business. During the year under consideration, assessee raised share capital of Rs.1,34,00,000/- including share premium on account of total shares issued 1,64,000. Assessee issued 1,40,000 shares to three individual share subscribers at a face value of Rs.10/- each. Nine other share subscribers were allotted shares with a face value of Rs.10/- and a premium of Rs. 490/- per share aggregating to Rs.1,20,00,000/-. The details of allotment of shares are tabulated as under: 3.1. Ld. AO called for explanation in respect of issue of share capital along with premium to the above share subscribers. Summon u/s. 131 of the Act was issued on the director of the assessee for personal appearance. One director Shri Kunal Mehta appeared before the Ld. AO whose statement was recorded and is placed on record. Assessee furnished necessary documentary evidence and explanations before the Ld. AO. Ld. AO also wanted directors of share subscribing companies to appear before him. In absence of their personal appearance, Ld. AO held that genuineness and creditworthiness of the share subscribing companies could not be establis....
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....tails of the investors who had made their submissions before the AO. (b) The Hon'ble Court also observed that the Tribunal has noted about the assessee had produced all the documents, disclosed the names and addresses and PAN of the investors including several other documentary evidence. (c) Hon'ble Court also observed that AO had issued notices u/s. 133(6) of the Act for carrying out independent verification of the transaction and thus investors duly responded to the said notices and filed the requisite details. (d) Also, the assessment years framed u/s. 143(3) of the investors were placed on record. (e) Tribunal also noted that the only reason for making the addition was that the directors of the assessee company did not respond to the summons issued by the AO u/s. 131. Thus, the non-appearance of the director formed the basis of making the addition. 8.1. From the above stated observations and notes, the Hon'ble High Court came to the conclusion that there was no question of law much less substantial question of law which arose for consideration in the said appeal and thus, the appeal filed was dismissed. A reference was also made by the Hon....
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....fore, the attendance of the witnesses pursuant to the summons issued in our view is not important. The important is to prove as to whether the said cash credit was received as against the future sale of the produce of the assessee or not. When it was found by the CIT (Appeal) on fact having examined the documents that the advance given by the creditors have been established the Tribunal should not have ignored this fact finding." 11. Ld. AO has not bothered to discuss or point out any defect or deficiency in the documents furnished by the assessee of the share subscribing companies. These evidences furnished have been neither controverted by the Ld. AO during the assessment proceedings nor anything substantive brought on record to justify the addition made by him. Ld. AO has simply added the amount of share capital and share premium on the ground that assessee has not produced the directors/shareholders. Thus, going by the records placed by the assessee of all the share subscribing companies, it can be safely held that the assessee has discharged its initial burden and the burden shifted on the Ld. AO to enquire further into the matter which he failed to do so. It is also noted ....
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....16.00,000 VES ETESUR TRADECOM PVT. LTD. 21/1, MAHENDRA NATH LANE,DHOLA APARTMENT, FLAT 402, 4TH FLOOR, HOWRAH- 711101 2000 10.00.000 VER & EVESOR TRADECOM PVT. LTD. 21/1, MAHENDRA NATH LANE,BHOLA APARTMENT, FLAT 402. 4TH FLOOR, HOWRAH- 711101 AACCE0020D 2000 10.00,000 YES ROSE COMMOSALE PVT. LTD. 67A, BALRAM DEY STREET, KOLKATA- 711101 AAECR2224G 2000 YES 7 RADHASHYAM DEAL TRADE PVT. 221H.STRAND ROAD, 2ND FLOOR, R.NO. 02, KOLKATA-700001 AAFCR8225E 3000 15,00,000 YES CASTLE FINGUN [P)LTD. KAVERI HOUSE, 132/1. M.G.ROAD, 4TH FLOOR, KOLKATA 700007 AA5001200L 1000 20,00,000 VEe TOTAL 1,10,00,000 21/1, MAHENDRA NATH LANE,DHOLA APARTMENT, FLAT 402, 4TH FLOOR, HOWRAH- 711101 21/1, MAHENDRA NATH LANE,BHOLA APARTMENT, FLAT 402. 4TH FLOOR, HOWRAH- 711101 List of Allotees (No Addition) Name of the Allotee Address of the Alletee PAN No of Shares Alloted Total 133(5) Nolice Complied 9 SHASHI MEHTA 210, SARAT BOCE ROAD, KOLKATA-700020 AFGPM90328 70000 7,00,000 YES 10 AMIT MEHTA 2/10. SARAT BOSE ROAD, KOLKATA-700020 AHCPM8306L 35000 3,50,000 YES 11 KUNAL MEHTA 2/10. SARAT BOSE ROAD, KOLKATA-700020 AHBPM2547E 3,50,000 YES 12 ARREN TIE UP PV....