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2019 (4) TMI 2090 - AT - Income TaxAddition u/s 68 - procurement of accommodation entries through share application money from nondescript companies - HELD THAT:- As on perusal of the bank accounts of the share applicant companies filed in the paper book before us, we find that money has been deposited on various dates and almost equal amount has been withdrawn within a short period leaving a very small nominal balance. This trend has been observed almost in all the share applicants. The share applicants have paid share premium of Rs. 90 per share, whereas on perusal of the financial statement of the company for the year under consideration, we find that net profit during the year under consideration has been shown at Nil. We do not find any financial rational behind making investment by the share applicants companies at huge premium of Rs. 90 per share. No explanation has been furnished by the assessee along with evidences as to why the investor company had applied shares at a such high premium of Rs. 90 per share. In the instant case, on summon being issued by the AO, not a single director of those companies attended before the Assessing Officer and the document containing audited financial statements, balance sheet confirmation etc. have only been filed by post and that too when this fact of non-compliance by the share applicants was brought to the notice of the assessee. During physical verification by the Inspector of the office of the Assessing Officer, none of the share applicants was found at their given address. Relying on the decision of NRA Iron and Steel Private Limited [2019 (3) TMI 323 - SUPREME COURT] we set aside the finding of the Ld. CIT(A) on the issue in dispute and hold that the assessee failed to discharge its onus as required under section 68 and the Assessing Officer is justified in treating the amount received against share application money as unexplained cash credit under section 68 of the Act. The corresponding commission amount is also held as unexplained. Accordingly, the grounds of the appeal of the Revenue are allowed.
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