Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 103 - ITAT KOLKATAUnexplained cash credit u/s 68 - bogus share capital/share premium - book value of share was 212/- per share whereas the premium at which the equity shares were issued was approximately five times higher - as per DR mere fact that subscribers have sufficient funds or net worth would not automatically proved that they have creditworthiness to invest the money and transactions are genuine - HELD THAT:- We find that during the year the assessee has raised money from five subscribers by issuing equity shares of face value of 10/- each and at a premium of Rs. 990/-. The net worth or the book value as per share as per books of account of the assessee was 212/- per share whereas the assessee was issued shares at a premium of Rs. 990/-. We also note that the assessee company was incorporated in 2007 and over a period of four years the value of shares was increased by 20 times and it is only based on this growth trajectory and potential of the assessee, equity shares have been prised at Rs. 1,000/- each inclusive of premium of Rs.990/-. Provisions of Section 56(2)(viib) of the Act are effective from AY 2013-14 and are not applicable to the year under consideration. We find that the assessee has filed all the evidences as stated above consisting of copies of ITRs, audited accounts, certificates of incorporation, Memorandum and Articles, Annual Returns filed with ROC, bank statements, replies to summons issued u/s 131, source of source certificates, assessment orders u/s 143(3) and intimation u/s 143(1) of the Act in all five investors and the authorities below have failed to pin point any defect of deficiency. Thus we are inclined to hold that the addition has wrongly been confirmed by the CIT(A) and we are not in a position to sustain the same. Consequently the order of CIT(A) has set aside and AO is directed to delete the addition. Decided in favour of assessee.
|