2026 (5) TMI 1460

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....he Income Tax Act, 1961 ("the Act") dated 13.12.2018, passed by Asst. Commissioner of Income Tax - Circle 1(3)(1), Mumbai. The ground of appeal are as under: 1. That on the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) ("Learned CIT(A)) has erred in confirming the additions of Rs. 1,38,30,000/- made under Section 68 of the Income Tax Act 1961 as unexplained cash credit in respect of the alleged share application money without properly appreciating the Written Submissions, evidences, explanations and material placed on the record by the Appellant. 2. That the Learned CIT(A) has erred in confirming the addition of Rs. 1,38,30,000/- without appreciating that the Impugned amou....

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.... 7. That the addition sustained by the Learned CIT(A) is wholly unsustainable as it amounts to taxing a capital receipt reflected in the audited annual accounts since Financial Year 2009-2010 which is impermissible in law. 8. The Appellant craves leave to add and/or amend and/or delete and/or modify and/or alter aforesaid grounds of appeal as and when the occasion demands. 2. Brief Facts: The assessee is a private limited company. Selected for scrutiny assessment for the relevant for the reason of the large share application / capital / premium received. Notices under section 143(2) and 142(1) were issued. Primarily the assessee had submitted certain information and authorized representative of assessee attended the office of l....

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....ok us to the audited balance sheets of the assessee for FY 2010-11 (AY 2011-12) (PB Pg 53), showing some increase in the share capital as well as the security premium. However, no increase has been noticed as per audited financials of the assessee in FY 2011-12 (AY 2012-13) and FY 2014-15 (AY 2015-16) (Pb Pg 72 & 93). It was the submission that since there was no increase in the share capital of the assessee company or Security Premium Account during the year under consideration, no addition under Section 68 or any explanation on behalf of the assessee to explain the reason for increase or the source of such increase was called for, therefore, the addition made was unwarranted and without basis. It was the prayer that on the basis of facts ....