9911796707
TMI Blog2024 (12) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO in respect of share capital/share premium u/s 68 of the Act. 3. Facts in brief are that the assessee filed return of income on 03.09.2012 declaring total income at Rs. 4,20,011/-. The case of the assessee was selected for scrutiny under CASS and statutory notices were duly issued and served on the assessee which was replied by the assessee by submitting various documents/details as called for by the AO. The AO in order to independent verify these transactions also issued summon u/s 131 to the assessee on 20.02.2015. The AO even admitted the ld. Counsel of the assessee filed all the details which were placed in the assessment folder. Thereafter the AO issued a final show cause notice on 25.02.2015 which was complied with by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied with. The AO has noted that the issue of equity shares at such high premium was not justified. We also note that the assessee has issued shares based on the valuation report a copy of which is attached at 164 to 172 of the PB which justified the issue of equity shares at such a premium. We note that the said valuation was filed before the AO vide written submission dated 07.02.2015 and vide para no. 11 the assessee stated that the equity shares of face value of Rs. 10/- each with share premium of Rs. 990/- per equity shares was based upon the CA certificate along with copy of valuation of the property of the company. Even we note that there was no application of mind by the AO at the time of assessment and similarly in the appellate pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dences. Similarly in respect of final subscribers M/s Sunview Tradelinks Pvt. Ltd. details were filed before the AO as well as before the Ld. CIT(A). We note that in the case of first subscriber the assessment was framed u/s 143(3) / 147 of the Act vide order dated 24.05.2019 whereas in respect of second, third and fourth subscribers the assessments were made u/s 143(1) of the Act and are available in the paper book. We note that all the subscribers have filed their replies before the AO confirming the investments along with source of fund with copies of ledger accounts, bank statements, ITRs and audited statement of accounts etc. However both the authorities below have failed to carry out any investigation and enquiry on the documents furn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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