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2023 (8) TMI 36 - ITAT MUMBAIUnexplained investment - Purchase of shares at premium - as per DR whole transaction is a pre-structured transaction and a colourable device used by the assessee only for the purpose of introducing a huge amount of undisclosed income of the assessee in the form of investments - HELD THAT:- We find that the lower authorities have found the assessee to be not doing any business activity at its premises and have found the assessee to be showing no sales/receipts and only a meagre taxable income of Rs. 8000. AO found the assessee to be having very weak financials, which cannot lead to investment to an extent of Rs. 7,93,50,000 by any prudent businessman. Accordingly, the AO treated the assessee to be a shell company, which is used to launder money as reflected in the books of account. Assessee failed to substantiate the huge investment by purchasing shares at a premium of Rs. 10,000 per share having a face value of Rs. 100 of a loss-making company. Therefore, in the absence of any contradictory material being available on record to controvert the aforesaid findings recorded by the lower authorities, grounds raised in assessee’s appeal are dismissed. Ex-parte order u/s 250 - non affording any opportunity of being heard in the matter which is against the principles of natural justice and hence the order passed be quashed - HELD THAT:- As no material has been brought on record to justify non-compliance with the various notices of hearing issued by the CIT(A). Accordingly, we find no infirmity in the impugned order whereby the appeal filed by the assessee was decided on the basis of material available on record. As a result, ground no.1 raised in assessee’s appeal is dismissed.
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