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2023 (2) TMI 563 - ITAT KOLKATAAddition u/s 68 - Assessee received premium of Rs.499/- against the value of share at Rs.1/- - submission before us was that in order to avoid registration fees, the assessee had received the share capital in cash - HELD THAT:- In response to our question about the financial health, the ld. Counsel for the assessee submitted that this is the first year of the Company and, therefore, it’s not having any taxable income, however, when we ask him the source of funds, how it contemplates to run its business, what are the project reports and what circumstance an share applicant would infuse his money in a start-up company, but nothing is available on the record. Neither the share applicant companies have any financial strength as noticed by the ld. CIT(Appeals). They have not given any explanation of the source of money in their hands for making payments to the assessee as share application money in cash. Therefore, revenue authorities have rightly treated it as bogus and sham transactions. AO has rightly made the addition - Decided against assessee.
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