2005 (8) TMI 67 - RAJASTHAN HIGH COURT

Assessing Officer reached his conclusion that, there has been increase in the share capital of the assessee-company on account of issue of shares. The shares have been issued to limited companies as well as individuals on the basis of receipt of share applications through banking channels - Existence of Umesh Kumar has been established as shareholding is issued in his name. No effort was made to find out the real investor as to who has made investment in the name of Umesh Kumar. Hence, additions of increase in share capital on account of share application of Umesh Kumar also could not have been sustained. Appeal is allowed. The additions made on account of increase in the share capital of the company on account of investment by Westbury Invest Trade P. Ltd. amounting to Rs. 2 lakhs and by Mr. Umesh Kumar amounting to Rs. 1 lakh are deleted