TaxTMI 
TaxTMI 
2025 (12) TMI 274
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....are premium received by the assessee. Accordingly, notice u/s 143(2) and 142(1) of the Act were issued along with questionnaire which were duly served upon the assessee. The assessee filed detailed submissions along with necessary evidences and documents vide letter dated 05.10.2014. The ld. AO in order to independently verify the transactions of issue of shares and receipt of money received by the assessee issued u/s 133(6) of the Act to all the subscribers which were duly replied by them by filing the necessary information/ documents. The ld. AO noted that during the year the assessee company has issued share capital/ share premium of Rs. 5.00 crores comprising share capital of Rs. 5 lacs + share premium of Rs. 4,95,00,000/-. The assessee issued equity share at a face value of Rs. 10 each at a premium of Rs. 990/- aggregating to 50,000 equity shares to four parties namely; (i)M/s Vibhakar Trading Pvt. Ltd., (ii) M/s Vrajesh Marketing Pvt. Ltd., (iii) M/s Briravi Commercial Pvt. ltd. (iv) M/s Ganesh Stockist Pvt. ltd. The ld. AO issued summons u/s 131 of the Act to the directors of the assessee company for in person deposition and producing the documents, which were duly produced.....
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....see on legal issue challenging the proceedings u/s 153A of the Act by following the decision of Hon'ble Apex Court in the case of PCIT v. Abhisar Buildwell P. Ltd. (2023)454 ITR 212(SC). Now, with the passing of the said order the assessee has challenged the addition confirmed by ld. CIT (A) in the order framed u/s 143(3) of the Income-tax Act, 1961 (the Act) which is being adjudicated in the ensuring paras. 06. Ld. Counsel for the assessee vehemently submitted before the bench that the order passed by the Ld. CIT(A) is wrong and against the facts on record and various decisions given by different judicial forum. The Ld. AR,while referring to the evidences filed by the assessee as well as by the subscribers, submitted that the assessee as well as the subscribers have filed all the evidences proving the identity and creditworthiness of the subscribers as well as genuineness of the transactions. The Ld. AR referred to the replies filed in response to notice u/s. 133(6) of the Act and in response to summons u/s. 131 of the Act and submitted that the AO has not pointed out any defect or deficiency in these evidences, which abundantly proved the three conditions of section 68 of ....
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....ined. We note that the ld. AO has relied on the decision of Durga Prasad More (Supra)by ignoring the facts available on record and evidences filed by the assessee as well as subscribers. Though, the summons u/s 131 of the Act were not complied with by the assessee by making the physical appearance before the ld. Assessing Officer, however, the information desired were duly furnished before the ld. AO. In our opinion, the addition confirmed by the ld. CIT (A) is incorrect and can not be sustained as the assessee as well as the subscribers had furnished all the evidences before the AO which are also available before the ld CIT(A). The case of the assessee is squarely covered by the decision of the jurisdictional High Court in case of Principal Commissioner of Income-tax vs. Sreeleathers [2022] 448 ITR 332 (Calcutta)[14-07-2022], wherein the Hon'ble Court has held as under:- "In the absence of any such finding, it is held that the order passed by the Assessing Officer was utterly perverse and rightly interfered by the Commissioner (Appeals). The Tribunal re-appreciated the factual position and agreed with the Commissioner (Appeals). The Tribunal apart from taking into con....
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....er hand the assessee has filed all the evidences called for by the AO qua the subscribers. We also noted that even the notice issued u/s 133(6) of the Act were fully complied with and same by position with regard to summon issued u/s 131 of the Act as all the details called for by the AO were duly furnished nonetheless no personal appearance was made for deposition. The case of the assessee finds support from the following: Under the circumstances, we are not in a position to sustain the order of Ld. CIT(A). We find support from the decision of Hon'ble Supreme Court in the case of Orissa Corporation Ltd. (supra), wherein it has held as under:- "That in this case the respondent had given the names and addresses of the alleged creditors. It was in the knowledge of the Revenue that the said creditors were income-tax assessee's. Their index numbers were in the file of the Revenue. The Revenue, apart from issuing notices under Section 131 at the instance of the respondent, did not pursue the matter further. The Revenue did not examine the source of income of the said alleged creditors to find out whether they were creditworthy. There was no effort made to pursue the so-called a....
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....age 463, the Supreme Court has observed as follows: "The Income-Tax Appellate Tribunals performs a judicial function under the Indian Income-tax Act. It is invested with authority to determine finally all questions of fact. The Tribunal must, in deciding an appeal, consider with due care all the material facts and records its findings on all the contentions raised by the assessee and the Commissioner, in the light of the evidence and the relevant law." The Tribunal must, in deciding an appeal, consider with due care all the material facts and record its findings on all contentions raised by the assessee and the Commissioner, in the light of the evidence and the relevant law. It is also ruled in the said judgment at page 465 that if the Tribunal does not discharge the duty in the manner as above then it shall be assumed the judgment of the Tribunal suffers from manifest infirmity. Taking inspiration from the Supreme Court observation we are constrained to hold in this matter that the Tribunal has not adjudicated upon the case of the assessee in the light of the evidence as found by the Ld. CIT(A). We also found no single word has been spared to up set the ....