TaxTMI 
TaxTMI 
2024 (2) TMI 1630
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.... made by Ld. Assessing Officer of Share capital of Rs. 5,07,00,000/- including share premium u/s 68 of the Income Tax Act, 1961." The assessee has taken additional grounds. But during hearing the additional ground was not pressed. 3. Brief facts of the case is that the assessee is a manufacturer of quilts and pillows at Falta Special Economic Zone, West Bengal and to export them. The major customer of the Company is IKEA. During the impugned assessment year the assessee raised share capital amount to Rs. 5,07,00,000/- by way of issue of equity shares number 202800 by charging Rs. 10/- each and at a premium of Rs. 240/- each. The assessment proceeding was initiated against the assessee and the verification of investors were started. The notice u/s 131 was issued calling for personal appearance of the Directors of assessee company. Further the notice was issued in direction to appear the directors of the invested company but all are remained non-compliance. The assessee complied notice u/s 142(1) of the Act by submitting the financial documents, proof of identity, the transaction through banking channel and creditworthiness related investment. Due to lack of verification, th....
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.... U74999WB2011PTC162893 AABCO4774B 14 Surbhika Vyapaar Pvt Ltd. 4, Synagogue Street, Kolkata- 01 U51109WB2005PTC102301 AAJCS0680C 15 Ritesh Commercial Holdings Ltd 53A, Mirza Ghalib Street Kolkata- 16 U27106WB1986PLC40985 AABCR1974J 16 Darshan Consultant Pvt Ltd 53A, Mirza Ghalib Street Kolkata- 16 U74140WB211PTC162872 AABCD8334Q 17 Storewell Shipping Pvt Ltd. 11, Government Place (East) Kolkata-69 U35111WB199PTC084198 AAECS8523K 18 Charisma Enclave Pvt Ltd. 53A, Mirza Ghalib Street Kolkata- 16 U74999WB2011PTC162892 AAECS8523K 19 North City Creations Pvt Ltd. 4, Synagogue Street, Kolkata- 01 U74999WB2012PTC172258 AADCN8759R 20 Real Sunrise Marketing Pvt Ltd. 4, Synagogue Street, Kolkata- 01 U74999WB2012PTC172263 AAFCR6675L 21 Salasar Sarees Pvt. Ltd. 53A, Mirza Ghalib Street Kolkata- 16 U1722WB2009PTC139272 AANCS5332F 22 Speed Business Pvt Ltd. 53A, Mirza Ghalib Street Kolkata- 16 U51909WB2000PTC092400 AAECS9293C 23 Veenus Financial Consultants Pvt Ltd. 53A, Mirza Ghalib Street Kolkata- 16 U74140WB2009PTC135145 AADCV0051C ....
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....ments and evidence to substantiate the identity, genuineness and creditworthiness of the shareholders. The documents are also submitted in APB-1, pages 1 to 436 in which following details in respect of each shareholders are submitted: i) Share application form ii) source of funds iii) bank statement iv) audited accounts v) copy of income tax acknowledgment vi) copy of PAN card The Ld. A.R in argument further relied on the order of ITAT, Kolkata "A" Bench in the matter of ITO vs. Indus Realty Pvt. Ltd. in ITA No. 666/Kol/2023 for AY 2012-13 pronouncement date 08.11.2023. The relevant paragraph extracted as below: - "7. During the course of hearing, it was pointed out that all these four companies are Group Company of the assessee. They filed positive return income every year though small in number. For instance first group Concern is Citizen Securities Pvt. Ltd., who has net worth of Rs. 3.91 crores and this Concern invested only Rs. 25 lakhs, i.e. less than 10% of its own net worth. The Directors of this Company appeared before the ld. Assessing Officer and deposed that the Company has made investment with the assess....
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....e was non compliance on the part of the assessee company. The assessee company failed to totally discharge its onus to prove a transaction to be true even though the statutory notices and further refixation notices and further notice U/s 131 of the Income Tax Act'61 was issued to the Directors of the assessee company for personal appearance and recording of statement and obtaining deposition and to substantiate that the alleged transaction was from genuine sources and not a bogus transaction and also to produce the details and documentary evidences of the sources of the source of funding of the shareholders and justification of ^ issue of shares at such a huge premium. Assessee failed to discharge onus: Even though opportunity of" being heard was provided to the directors but there was non-compliance to the said 131 notice. The directors of the company failed to produce evidences required to substantiate the transactions along with the source of funding of such Shares/ Premium / applications. The assessee company and the directors of the assessee company failed to discharge the onus to provide a transaction as being genuine and failed to discharge his duties."....