TMI Blog2019 (7) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... to such notice. Even they did not or could not supply necessary details and documents to establish their genuine investment in the assessee company. AO recorded that there was no reason for high premium of ₹ 30 per share being paid by the investors. The assessee company had carried out no business during the entire period, except for collection of share application money. The responding investors also could not explain the source of their investments. It was noticed that before issuance of payment by them, deposits were made in their bank accounts and immediately the investments in purchase of the assessee's shares were made. The investors could not provide photocopies of the share certificate issued by the Company and did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Appellate Tribunal ( the Tribunal for short). The following questions are presented for our consideration : (a) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in sustaining the addition u/s. 68 of the Act, in the hands of the Appellant, even though the Appellant was incorporated on 17th March, 2006 i.e. at the fag end of the year immediately preceding the relevant financial year and undisputedly, no activity was carried out by the Appellant. (b) Whether on the facts and in the circumstances of the case and in law the Hon'ble Tribunal was right in holding that the proviso to section 68 inserted by Finance Act, 2012, effective A.Y. 2013-14 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 30th May, 2018. Simultaneously, the return of the assessee was taken in scrutiny. It was noticed that during the period relevant to the assessment year in question, the assessee had issued 9,37,500 equity shares at a face value of ₹ 10 with a premium of ₹ 30 per share and thus total collection of ₹ 3.75 Crores was made by way of share application money. The assessing officer examined the source of his receipt and held that the said represented nothing but the assessee's unexplained cash credit. Matching additions were made under Section 68 of the Act. The assessee carried the matter in Appeal. The Commissioner of Income Tax called for detailed demand report. On the basis of materials on record and after considering t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e investors could not provide photocopies of the share certificate issued by the Company and did not submit the share numbers which were allotted to them. 6. During the search action against the Directors of the Company, the statement of Mr. Faria was recorded which showed that he was the main person actively involved in the Company. He admitted that the entire investment was bogus. Blank receipts were obtained from the share holders. Their signatures were obtained on blank transfer forms. There was no evidence to show that such share certificates were issued. He also admitted that the share subscription is nothing but the book entries obtained from various persons against cash payments. Such a statement was never retracted. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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