2025 (12) TMI 343

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....ld. AO u/s 68 of the Act in respect of share capital / share premium. 2.1. The facts in brief are that the assessee filed the return of income on 26.08.2009, disclosing the total income at Rs. 23,411/-. The case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 28.02.2011. Accordingly, the order was framed on 02.09.2011. Thereafter, the ld. PCIT revised the said order on 11.03.2014, directing the ld. AO to frame the assessment afresh. The notice u/s 142(1) of the Act was issued to the assessee which was complied with by the assessee by furnishing the details of directors and shareholders along with all the evidences proving the transactions of shares allotment. The ld. AO also called upon the directo....

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....e original order u/s 143(3) by the Hon'ble CIT-III, Kolkata u/s 263 of the Act. The main issues in this case were crediting of Rs. 8,29,750/- and Rs. 3,23,70,250/- as fresh share capital and share premium respectively. During the course of assessment proceeding summons u/s 131 of the Act were issued to the fresh shareholders and the then directors of the company in question for examination of their identity, genuineness and credit worthiness. But none of them were appeared before the AO and some of then submitted documents. A good no of the issued summons were returned, un-served. After thorough verification the AO found that the above mention shareholder company has low total income, meager revenue from operations, almost low ....

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....hat the assessee issued shares to 12 subscribers qua which the details as noted above are available from page no. 1 to 226. The ld. AO made the addition on the ground that as per the replies received from these subscribers' u/s 131 of the Act, the income of the subscribers is very low, meager revenue from operation, almost no fixed assets and large reserves and surplus and investments. The order of the ld. AO has been upheld by ld CIT(A) by passing a very cryptic order. In our opinion the assessee has discharged its onus by filing all the evidences before the ld. AO as well as before the ld. CIT(A). Moreover, the addition u/s 68 of the Act cannot be made merely on the ground of low income, meagre revenue or low fixed assets and reserves and....