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2022 (9) TMI 503 - Income Tax
Addition u/s 68 - Unexplained share application money and premium thereon - HELD THAT:- Assessee sought for adjournment on various occasions and produced a piecemeal, not the relevant information as called for by the AO. In the first occasion, the assessee filed only the details of the shareholders name, address, number of shares and amount of investment, but without furnishing PAN number, copies of Return of Income, confirmation letters and bank statement of the share subscribers. In spite of seven opportunities given to the assessee, assessee could not produce the details before the AO - During the appellate proceedings, the assessee filed as additional documents namely the confirmation letters and cheque amount involved and PAN No. details.
The confirmation letters are all dated November 2010. There is no details about the folio number of the shares allotted to the shareholders. Further study of the consent letters of 10 shareholders submitted before the A.O. shows that several of them were not having any d-mat account though they have been shown to have subscribed to huge amounts of shares. The very fact that these shares were not issued by means of public offer shows that the promoters and the directors of the assessee company must know the alleged shares subscribers personally.
Despite thus the assessee failed to proof of identity, creditworthiness and genuineness of the transaction of the shareholders with the assessee company. Thus it clearly shows that the assessee has not produced the available documents with it before passing the assessment orders and the same is produced which is six years old before CIT(A) as additional documents which cannot be entertained. Perusal of the list of investors and their returned income was between the range of Rs. 1,65,764/- to Rs. 2,60,109/- but they invested ranging from Rs. 56 lakhs to Rs. 84 lakhs. Thus the creditworthiness of these investors are not proved beyond doubt.
No hesitation in confirming the orders of the lower authorities and the ground and additional ground raised by the assessee has no merits and the same are dismissed.