2026 (5) TMI 84

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....('AO' for short) for Assessment Year 2018-19. 2. By the impugned orders, an addition of Rs. 57,60,000/- is made to the total income of the appellant for the relevant year under section 68 of the Income Tax Act ('Act' for short). 3. The brief facts are that the appellant is a Non-Banking Financial Company (NBFC), registered with Reserve Bank of India (RBI) and is mainly involved into providing credit facility. The appellant filed its Return of Income for the relevant year on 30.06.2018 declaring total income of Rs. 2,83,82,280/- which was duly processed under section 143(1) of the Act. Thereafter, the case was selected for complete scrutiny for the reason that the assessee had transaction with a company whose registration has been canc....

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....heard parties. Perused records. 7. It is submitted by the ld. AR that no fresh share capital or money was received by the appellant during the year under consideration from M/s.Ramdut Infra Project Pvt. Ltd. and thus, the impugned addition made with reference to Section 68 of the Act cannot be sustained. It is submitted that the share capital was introduced in Assessment Year 2012-13 when M/s.Ramdut Infra Project Pvt. Ltd. was active and legally existing. It is submitted that the First Appellate Authority is in error in holding that the striking off of M/s. Ramdut Infra Project Pvt. Ltd., by the RoC rendered the share capital as taxable. It is submitted that the fact that the name of the said company has been struck off by the RoC does n....

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....ear. In the present case, we find that there is no such evidence brought on record, except that the name of the company which is the shareholder of the appellant has been struck off from the Registrar of Companies by the RoC vide order dated 30.06.2017, which incidentally falls during the financial year relevant to assessment year 2018-19 to which the present appeal relates. 11. It is necessary to note that the appellant claims that the name of M/s. Ramdut Infra Project Pvt. Ltd. has been struck off due to certain non-compliances but the said company has not been dissolved or liquidated. It is further pointed out that the name of the company can be restored back on making certain compliances of filing certain forms. 12. It is necessar....