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2019 (7) TMI 875 - AT - Income TaxAddition u/s 68 - unexplained share capital - as alleged shareholders premises were found locked and in some cases summons could not be served remain on complied - Search and survey operation u/s 132 /133A - addition of commission that was claimed to be paid thereon to the entry operator - HELD THAT:- AO has made enquiry by issuing letter under section 133 (6) and which were found to be replied created suspicion in the mind of the AO. Further, the directors were not produced by the assessee. In response to summons u/s 131 on the companies, no replies were received. There is no indication that how these companies have managed to invest in the appellant company, which is a private limited company where there is no dividend, issued or there is any likelihood of substantial investment return to these companies - information of the investment by the shareholders was unearthed during the course of search on Shri SK Jain. The assessee being private limited company should be in the know of things of the investors when they have made such a huge investment in the assessee company. CIT – A has not even looked at the fact that what the assessee company is doing and what is the reason that nine companies operated by one person, comes together, and invest ₹ 70,00,000/- in the assessee company as share capital, in short span of time, which does not have any chance of return or earning huge dividend. All these facts considered in one compass clearly show that the identity of the creditors, creditworthiness of those creditors and genuineness of the transaction is just a make-believe story. AO is correct in making an addition u/s 68 representing unexplained share capital and consequent addition of the commission thereon. - Decided in favour of revenue
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