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2023 (2) TMI 847 - AT - Income TaxAddition u/s 68 - sources of fund introduced in the nature of share capital and share premium unexplained - AO remained to be unsatisfied with the identity, creditworthiness and genuineness - HELD THAT:- Firstly the financials of the assessee company itself are so poor that by no stretch of imagination the assessee company can attract the investors to invest in its share capital and pay a huge premium of Rs. 9,990/- without having certainty of the return on such investments since there is hardly any future prospect of the assessee company giving rise to profitability. This fact itself shows that the genuineness of the transaction is in doubt. As far as identity of the share applicants is concerned, there cannot be any doubt because they all are registered with the Registrar of Companies having PAN number and regularly filing the income tax return. So far as the creditworthiness of the share applicants is concerned, we notice that there is a common pattern that in all such companies the income is very meagre and in comparison, of such income in the present as well as in the past period do not carry a weight and is beyond human probability to venture for a huge investment in the assessee company which itself has poor financials. All the transactions involving the issuing of share capital on the equity shares of face value of Rs. 10/- and share premium of Rs. 9,990/- as well as the huge investments by alleged shareholders neither prove the genuineness of the transaction nor prove the creditworthiness of such shareholders. Therefore, we fail to find any infirmity in the finding of ld. CIT(A) and the same is confirmed. Accordingly, the addition made by ld. AO u/s 68 of the Act stands confirmed. Decided against assessee.
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