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2023 (1) TMI 38 - AT - Income TaxAddition u/s 68 - share capital received from 8 companies - CIT-A deleted the addition - HELD THAT:- CIT (A) while deleting the addition did not examine the shareholders of the assessee company, nor examined the directors of the assessee company, even did not inquired the assessee questions about companies operated by Mr. Dilip C Mehta and several statements. Therefore ld. CIT (A) did not consider any of the reasons of the ld. AO for which addition is made. He merely swayed by the written submission of the assessee and deleted the addition. The ld. CIT (A) even did not find it proper to question the assessee about its activities and justification of share premium to show the genuineness of the share capital. As the assessee is a private limited company, how it came in to connect with those all 8 companies for subscribing to the shares of the assessee company which does not have income generation, was not at all inquired by the ld. CIT (A). Ld. CIT (A) further failed to visualize a situation with perspective of genuineness that 8 non-descript companies investing Rs 10 Cr, having common address, in share capital of a private limited company at huge premium of Rs 180 per share and the assessee company does not have any knowledge about the whereabouts of such a valued investor in that company. Thus, the order of the learned CIT – A, is not sustainable in law in deleting the above addition. In view of this, we reverse the order of the learned and CIT – A and confirm the order of the learned assessing officer. - Decided against assessee.
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