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TMI Blog2024 (6) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A) as made by the AO u/s 68 of the Act on account of unexplained share capital /share premium. 3. Facts in brief are that the assessee filed return of income on 29.09.2014 declaring total income of Rs. Nil. The case of the assessee was selected for scrutiny through CASS and statutory notices were duly issued and served on the assessee. The assessee is engaged in the business of investment in shares/securities. The AO during the assessment proceedings called for various documents and evidences qua the issue of share capital/ share premium which were accordingly filed comprising the copies of ITRs, audited accounts, share application forms, share allotment letters, bank statements, memorandum of articles of associations etc. in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank statements and other evidences were not filed to prove the creditworthiness of the parties. 5. The Ld. A.R vehemently submitted before us that the assessee has filed all the evidences qua these shares/share premium before the AO as stated hereinabove proving the identity and the source of money thereby proving the creditworthiness and genuineness of the transactions. The Ld. A.R referred to that notice issued u/s 133(6) which were duly replied by all the parties confirming the transactions with the assessee. Thereafter the A.R also pointed out that the summons were also issued u/s 131 to six parties who duly appeared before the AO and confirmed the transactions and also furnished the information/details as desired by the AO. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stment on the ground that it was going to invest in M/s Delsey (I) Pvt. Ltd and the said company is a joint venture between M/s Delsey SA France and M/s Sapphire Trade Associates Pvt. Ltd. with 51% and 49% partnership respectively. The Ld. A.R also referred to page 12 which contained the details of investment in schedule VI in unquoted investment in the equity shares of M/s Delsey India Pvt. Ltd. amounting to Rs. 1,96,00,000/- . The Ld. A.R also controverted the findings recorded by AO at page 2 para (i) of the assessment order that the assessee was incorporated in AY 2014-15 whereas as a matter of fact the assessee was already a existing company. The Ld. A.R therefore prayed that the order passed by the Ld. CIT(A) is wrong and against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties which were accepted by the revenue to be genuine in the assessment proceeding which culminated in the assessment order u/s 143(3) a copy of which is filed at page 786 to 788 of PB. We have also examined the valuation of shares as made by SDP& Associates for the purpose of section 56 read with Rule 11UA of the Rules and note that the premium has been computed at Rs. 95.27/- per equity shares whereas as a matter of fact the shares were issued at premium of Rs. 90/- each. We also note that the assessee has justified the issuance of share capital at a premium as the money collected were to be invested in M/s Delsey India Pvt. Ltd. which was a joint venture between M/s Sapphire Trade Associates pvt. Ltd. and M/s Delsey India Pvt. Ltd. w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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