The Tax Publishers2019 TaxPub(DT) 3497 (Kol-Trib)

INCOME TAX ACT, 1961

Section 68

Where assessee submitted that various evidences submitted by him were not even considered by AO as the assessment was made with a pre-determined mindset that the share capital and premium received by assessee was not genuine, therefore, in the interest of justice, matter was remanded back to AO for de novo adjudication and decide the same in accordance with law

Income from undisclosed sources - Addition under section 68 towards share capital and share premium - Evidences submitted by assessee not considered -

AO observed that assessee had raised share capital with premium. It was observed that assessee had not received any revenue from its operations during the year. Notice under section 133(6) was issued to verify the share capital raised together with its premium and the allotment thereon. No replies were received in response to notice under section 133(6). Summons under section 131 was issued to signatory director seeking his personal appearance and to produce the investors but none appeared in response thereto. AO observed that books of account and bank statements of assessee were also not produced. Hence he concluded that source of capital raised and the high premium on its allotment remained unexplained warranting addition under section 68. Held: Assessee submitted that various evidences submitted by him were not even considered by AO as assessment was made with a pre-determined mindset that the share capital and premium received by assessee was not genuine. Hence, he pleaded for setting aside of this issue to AO. Hence, in these peculiar facts and circumstances, in the interest of justice, matter was remanded back to AO for de novo adjudication and decide the same in accordance with law.

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. :



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