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2009 (11) TMI 335 - HC - Income TaxCash Credits- Share capital- The assessee company was incorporated as a public company for which purpose share capital was invited from the public all over India. On account of chance in law under which the limit for public limited company was raised, the assessee could not achieve the target of share capital. The assessee suffered loss because the whole investment went waste and the activities of the assessee came to a standstill. The Assessing Officer passed ex parte orders making addition of the sum received as share capital, because the orders making addition of the sum received as share capital, because the assessee was not able to file confirmations since there were no activities in the company and the person not co-operating. The Tribunal dismissed the appeal of the assessee, and partly allowed the appeal filed by the Revenue thereby reducing the amount of relief granted by the commissioner (Appeals) held that- the company was dead and defunct from 1999 and since then its directors had been doing odd job and from 2002 they were in private service with other companies. However, this company never declared any dividend because of losses. Therefore the addition made by the Assessing Officer was to be deleted.
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