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TMI Blog2022 (7) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that the assessee had discharged its onus ignoring the fact that the assessee had failed to establish the genuineness and creditworthiness of the transactions." 2. "on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in not considering the decision of the Hon'ble Delhi High Court in the case of MIs. Navodaya Castle Pvt. Ltd. wherein the Hon'ble High Court has made observation with respect to creditworthiness 3. The appellant prays that the order of the Ld.CIT(A) on the above ground be set aside and that of the AO be restored. 4. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary. 2. The brief facts of the case are that the assessee company is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 and 31.03.2009 is much less, to command such a huge premium and observed that they are not genuine transactions. The AO has dealt on the facts, judicial decisions, and submissions of the assessee and provisions of sec 68 of the Act and has issued show cause notice dated 10-03-2015 and one of the director of the asseessee company appeared and the case was discussed. Finally the A.O. has invoked the Best judgment Assesseement under section 144 of the Act. The AO is of the opinion that the genuineness of the transaction is not proved and therefore held that the receipt of share premium of Rs 2.25 crores i.e (15,00,000 X 15) is treated as not genuine. Whereas the AO was satisfied with the paid up value of shares of Rs.1,50,00,000/-.On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional evidences should not be accepted. The CIT(A) has dealt on the admission of additional evidences referred at Para 5.1 of the order and was admitted. Finally on the merits of the case, the CIT(A) dealt on the provisions of Section 68 of the Act and the ingredients required u/s 68 of the Act being identity, creditworthiness and genuineness of the transactions of the investor. The CIT(A) dealt on the facts and has observed that the claim of the assessee cannot be overlooked and the assessee has filed the various details/ information of the share holder. Finally the CIT(A) was satisfied on facts, law and relied on the judicial decisions and directed the A.O. to delete the share premium addition of Rs. 2.25 crores u/s 68 of the Act and part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss and the assessee has submitted the similar information and filed an application of additional evidence with the CIT(A) which was admitted and forwarded to the A.O. for comments/remand report. We find that the assessee company has issued 15 lakhs equity shares of Rs. 10 each paid up at a premium of Rs.15 per share, in the assessment proceedings the assessee has submitted the details substantiating the share application money received along with the premium from Mr. Anil Bhalla. The AO has accepted the facts of paid up value of shares to the extent of Rs. 1.5 crores and has made an addition u/s 68 of the Act share premium (1,50,00,000 x15) received Rs. 2.25 crores. On appeal, the CIT(A) has admitted the additional evidences u/rule 46A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68 of the income-tax Act, 1961 - Cash credit (Share Capital) - Assessment year 2008- pg - Whether proviso to section 68 introduced by Finance Act 2012 with effect from 1- 4.2013. Would not have retrospective effect - Held, ves - Whether where assessee-company had established identity, genuineness and capacity of shareholders who had subscribed to its shares, Assessing officer was not justified in adding amount of share capital subscription as unexplained credit - Held, yes - Whether where revenue urged that assessee had received share application money from bogus shareholders, it was for income-tax Officers to proceed by reopening assessment of such shareholders and assessing them to tax in accordance with law and it did not entitle revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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