2025 (10) TMI 1105

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 143(3) of the Act pertaining to assessment year 2012-13. 2. Brief facts of the case are that the assessee is a company and filed its return of income on 19.03.2013, declaring total income at NIL. During the course of assessment proceedings, it was found that the assessee company has issued 62,500 shares of face value of INR 10/- each at a premium of INR 790/- each which was subscribed by 13 companies totaling to INR 5.00 crores. In order to examine the creditworthiness and genuineness of the transactions, the AO has issued notices u/s 133(6) of the Act to all the companies. However, all the notices were returned unserved thereafter, notices were issued u/s 131 to the Principal Officers of the subscriber companies which were also returne....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the creditors as well as genuineness of the transaction and credit worthiness of the creditors. 2. The appellant craves leave for the reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 4. Before us, Ld. Sr. DR for the Revenue appeared on behalf of the Revenue whereas none appeared on behalf of the assessee. The case is heard on the basis of material available on record and submission given by Ld. Sr.DR for the Revenue. 5. The main contention of Ld. Sr. DR is that the assessee has failed to prove the identity, genuineness and creditworthiness of the subscriber companies. He submits that mere furnishing the confirmations, PAN, bank accou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....33(6) of the Act to the share applicant companies as they returned unserved. Further, the notices issued u/s 131 to the Principal Officer were also returned unserved. The AO based on the bank statements of the applicant companies obtained through bank had the occasion to see the activities in the bank accounts wherein it was found that there was immediate transfer of funds before the funds were transferred to bank accounts of the assessee. The assessee has filed the financial statements of the subscriber companies alongwith confirmation, ITRs and affidavits of the applicant companies. It was observed by the AO that all these companies are having NIL or very low income as compared to the amount of investments made in the share capital of var....