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TMI Blog2023 (9) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 5,95,87,500/- made by the Assessing Officer under Section 68 of the Act. 3. Briefly the facts relating to the issue and dispute are, the assessee is a resident corporate entity stated to be engaged in real estate business. In the assessment year under dispute, the assessee filed its return of income on 26.07.2016 declaring income of Rs. 90,73,860/-. In course of assessment proceedings, the Assessing Officer, on verifying details furnished by the assessee, noticed that in the F.Y. 2014-15, the assessee had issued 12,29,375 partly paid equity shares of Rs. 10/- each at a premium of Rs. 290/- each. Out of which, Rs. 160/- per share including Rs. 155/- as share premium was received by the assessee on allotment of shares in A.Y. 2015-16 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one Holdings Pvt. Ltd., appeared before the Assessing Officer and statement on oath u/s 131 of the Act was recorded from him. Similarly, one of the Directors of M/s. Verma Finvest Pvt. Ltd., the other investing company appeared before Assessing Officer and statement was recorded from him. Analysing return of income and other materials relating to the investing companies, the Assessing Officer ultimately concluded that the investing companies did not have the creditworthiness to invest in the share capital and share premium of the assessee company. Thus, he ultimately concluded that neither the genuineness of transactions nor the creditworthiness of the creditors could be established by the assessee. Accordingly, he treated the call money re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions. Thus, he held that none of the ingredients of Section 68 of the Act are fulfilled to make the addition. Accordingly, he deleted the addition made by Assessing Officer. 7. Before us, Learned Departmental Representative relied upon the observations of the Assessing Officer. Per contra, Learned Counsel appearing for the assessee strongly relied upon the observations of Learned First Appellate Authority. Further, he submitted, when in A.Y. 2015-16 the Assessing Officer has accepted part of the investment received by the assessee from the investing companies towards share capital and share premium, the balance part out of the total consideration cannot be treated as unexplained cash credit in the impugned assessment year. Proceeding fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 5/- towards face value and Rs. 155/- per share as share premium. Whereas, the balance amount of Rs. 140/- per share was paid as call money in the impugned assessment year. It is relevant to observe, in the year of allotment i.e. A.Y. 2015-16, in scrutiny assessment completed u/s 143(3) of the Act vide order dated 30.03.2017, the Assessing Officer after verifying relevant facts and evidence has accepted the investment made by investing companies towards share capital and share premium as genuine. The only disallowance made by him was an amount of Rs. 7,84,957/- towards share issue expenses. 9. Thus, once the issue was examined in the year of initial investment and allotment of share by the Assessing Officer and the transaction was foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, not only prove the source from which the assessee received the investment but the source from where the investing companies generated the funds to invest in the assessee company. Learned First Appellate Authority has given a categorical factual finding that the adverse inference drawn by the Assessing Officer that share holders of the assessee company as well as the investing companies are closely related cannot lead to the conclusion that the transactions are non-genuine. He has further observed that adverse inference drawn by the Assessing Officer with reference to Silpi Cables Technologies is unsustainable, as, the assessee has not carried out any transactions with the said company. Thus, from the detailed factual analysis r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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