TaxTMI 
TaxTMI 
2026 (1) TMI 820
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....ssee in this appeal is against the confirmation of addition of Rs. 55,00,000/- by ld CIT(A) as made by the AO on account of share capital as unexplained cash credit u/s 68 of the Act. 3. The facts in brief are that, the assessee is a private limited company promoted by Goel family and is engaged in the business of real estate. The assessee filed the return of income on 24.12.2012 declaring total income of Rs. 68,130/-. The case of the assessee was selected for scrutiny and statutory notice u/s 143(2) and notice u/s 142(1) of the Act were issues with questionnaire to the assessee and were duly served. During the financial year 2011-12, the company had decided to acquire certain immovable property for which it had obtained a bank loan and ....
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....te proceedings, the Ld. CIT(A) had examined the source of funds of each of the four (4) shareholders and found that only the source of source of funds of one (1) shareholder, Mr. Brahmanand Goel was verifiable and that the source of source of funds of other three (3) shareholders viz., Mr. K.B. Goel, Mr. Sunil Goel and their company, M/s Vikrangee Sales & Services Pvt. Ltd were suspicious. The Ld. CIT(A) accordingly deleted the share capital of Rs. 5,00,000/- issued to Mr. Brahmanand Goel and confirmed the balance addition of Rs. 55,00,000/- b y partly allowing the appeal.. 5. Assailing the action of Ld. CIT(A), the Ld. AR, referring to the evidences filed by the assessee as well as by the share subscribers, submitted that the assessee a....
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....hat the AO at no point of time had doubted the source of funds of the share subscribers, all of whom belonged to the same group. We thus find that the observations made by the Ld. CIT(A) doubting the source of funds of the shareholders was driven by suspicion, without bringing on record any tangible evidence or material. 7. We note that the assessee had raised Rs. 13,50,000/- each from Mr. K B Goel and Mr. Sunil Goel respectively. As observed above, both these share subscribers had furnished the relevant evidences including their ITRs, bank statements, audited financial statements before the lower authorities. According to Ld. CIT(A), while the share subscription monies were received from their bank statements but their source of funds w....
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....ayment of loan which was earlier advanced to another group concern, M/s KBG Consultants Pvt Ltd. Hence, we agree with the Ld. AR that, the source of funds of this shareholder is also explained. 9. Coming to the justification of share premium, it is noted that, the Director of the assessee had given the explanation regarding the same when he was examined u/s 131 of the Act. We also note that, the year involved is assessment year 2012-13 and the proviso to section 68 of the Act introduced by Finance Act, 2012, is prospective and is applicable from 01.04.2013 effective from A.Y. 2013-14. We observe that, the amendment to Section 68 by inserting proviso is not retrospective and is applicable prospectively as has been held by the Hon'ble ....