TMI Blog2023 (1) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by it during the year. Assessee failed to file necessary details to explain the source of alleged sum and also unable to prove identity and creditworthiness of the cash creditors as well as genuineness of the transaction. Assessee company has miserably failed to explain the source of alleged share capital and share premium. If the assessee had sufficient details to explain the alleged sum, it could have certainly filed those details at any stage. Consistently escaping from appearing/producing the documents and alleged parties before the AO and the appellate authority( CIT-A) and non appearance before us indicates that the assessee has no plausible explanation to explain the source of alleged sum of share capital and security premiu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee, but returned unserved. It is, therefore, presumed that the assessee is not interested to prosecute its appeal. We, therefore, deem it fit and proper to adjudicate the appeal on merits ex parte assessee on the basis of material available on record and with the assistance of the ld. DR. 3. The assessee has raised the following grounds of appeal for the AY 2012-13:- 1. (a) That on the facts and in the circumstances of the case, Ld.ClT(A) is wrong and unjustified in passing order u/s. 250 of Income Tax Act, 1961 dated 21.08.2017 on exparte view for noncompliance only on last occasion. (b) That the ld. CIT(A) has erred in passing exparte order without appreciating that non compliance on 09.08.2017 was due to unavoidable circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se to notice issued u/s. 142(1) of the neither any one appeared nor filed any details requisitioned by the ld.AO. Thereafter, the ld.AO issued summons u/s. 131 of the Act to the directors/share subscribers of the assessee company, but there was no compliance. Ld. AO found that the assessee company had issued shares at Rs. 568400/- with a premium at Rs. 11,66,31,600/- but assessee failed to explain the said sum. Ld. AO found that the assessee intentionally avoided the assessment proceeding and not cooperated in completing the assessment. Finally Ld. AO completed best judgment assessment u/s. 144 r.w.s 143(3) of the Act after making addition of Rs. 11,12,00,000/- for unexplained share capital and share premium u/s. 68 and Rs. 9400/- on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000/- by the ld.AO for unexplained cash credits of share capital and share premium received during the year. We notice that the assessee company had offered income at Rs. 850/- for the AY 20012-13. The assessee company has been able to procure share capital/share premium at Rs. 11, 72,00,000/-. It creates doubt about the genuineness of the alleged transaction as to how such company with no asset and poor track record has been able to procure share capital/share premium totalling to Rs.11,72,00,000/-. The company having secured such huge magnitude of share capital and share premium must be having proper business set up. Statutory notice u/s. 143(2) of the Act duly served upon the assessee and when the case of the assessee was selected for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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