2026 (6) TMI 1486

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.... and 4 challenging the order of Ld. CIT(A) confirming the addition of Rs. 1,43,35,000/-. 3. Facts in brief are that the assessee filed return of income on 30.11.2012 declaring total income of Rs. 95,350/- which was processed u/s. 143(1) of the Act. The case of the assessee was selected for limited scrutiny under CASS and notices were issued u/s. 143(2) and 142(1) along with questionnaire and duly served upon the assessee. The assessee was asked to furnish various the documents/details as called for by the AO which were furnished and test-checked by the AO and are available on record. The AO on perusal of the balance sheet of the assessee observed that the assessee has issued 14,335 equity shares at face value of Rs. 10/- each at premium ....

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....ot carried out any investigation nor pointed out any defect in the evidences by the assessee. The only reason for making addition was that as there was no compliance to the summon u/s. 131, the verification could not be done. The Ld. CIT(A) though discussed the financials of the share subscribers to uphold the finding of the AO on the ground that subscribing companies having meager income and no substantial activities and therefore there is no justification to issue shares at high premium. We note that the assessment has been framed in the case of three entities namely Amtek Financial Consultants Pvt. Ltd., Jagmangal Vanijya Pvt. Ltd. and Zircon Infracon Pvt. Ltd. u/s. 143(3) of the Act and copies of the orders are available at page no. 35,....

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....d the amount which was invested in the purchase of shares was negligible compared to their creditworthiness. Therefore, the Tribunal was satisfied about creditworthiness of all the share applicant companies. While doing so, the Tribunal also found that the identity of the share applicant companies and the genuineness of the transaction also cannot be disputed. Furthermore, in respect of the assessment made on the five share applicant companies were of scrutiny assessment under section 143(3) of the Act and those remained intact. Furthermore, source of share application money which has been received by the assessee has already been taxed in the hands of the share applicants and, therefore, it was held taxing the same amount in the hands of t....