2026 (1) TMI 1193

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....ssessee explained the reasons for delay in filing the appeal. The Ld. D.R did not raise any objection in condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons and hence, we condone the delay and admit the appeal for adjudication. 3. The issue raised in ground nos. 1 and 2 is not pressed at the time of hearing and therefore, ground nos.1 &2 are dismissed. 4. The issue raised in ground no.3 to 7 is against the confirmation of addition of Rs.55 lacs by the ld. CIT (A) as made by the ld. AO in respect of share capital raised by the assessee during the year as unexplained cash credit u/s 68 of the Act. 4.1. The facts in brief ar....

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....by two corporate subscribers as unexplained cash credit on the ground that there was no compliance to the summons and the subscribers have meagre income thereby making addition of Rs. 55,00,000 /- in the assessment framed u/s 143(3). 4.2. The ld. CIT (A) confirmed the addition in the appellate proceedings. 4.3. After hearing the rival contentions and perusing the materials available on record, we find that the issue of equity shares to three subscribers. We note that the assessee has produced all the evidences before the ld. AO as well as the ld. CIT (A) qua the share subscribers. The ld. AO also issued summons u/s 131 of the Act. However, the addition was confirmed on the ground that there was no compliance to the summons and the sub....

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.....62,88,525/- in the current financial year. Similarly, the other expenses have also gone up. The assessee produced before the ld. AO the books of account to prove of payments by cheque/ cash to the employees. The ld. AO also issued letter u/s 133(6) of the Act to the employees, who also replied the said notices confirming the payments received from the employer towards salary. However, the ld. AO noted that salary and other expenses have increased astronomically during the year. 5.2. We have examined the audited accounts of the assessee during the year and find that though there is some increase in the expenses of the assessee but the income of the assessee has also gone up from 85.98 lac to 111.43 lacs. Moreover, the assessee has produc....