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| The Tax Publishers2020 TaxPub(DT) 3362 (Mum-Trib) INCOME TAX ACT, 1961
Section 158BD Section 158BC
Since AO failed to link any incriminating material found during the course of search to additions made towards share capital in block assessments and assessee had proved that share capital raised during block period was accounted in regular books of account and same had been scrutinized by AO in scrutiny assessment, therefore, additions made towards share capital under section 68 could not be sustained.
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Search and seizure - Block assessment - Addition on account of bogus share capital without incriminating material found during search -
AO while framing block assessment under section 143(3) read with section 158BD read with section 158BC pursuant to search conducted at assessee's premises, made addition towards bogus share capital. Assessee challenged this on the ground of no incriminating material found during search. Held: It is an admitted fact that has failed to link any incriminating material found during the course of search to additions made towards share capital in block assessments. In fact, assessee had proved that share capital raised during block period was accounted in regular books of account and same had been scrutinized by AO in scrutiny assessment proceedings passed under section 143(3). Therefore, additions made towards share capital under section 68 could not be sustained.
Supported by:CIT v. Ravikanth Jain (2001) 250 ITR 141 (Del) : 2001 TaxPub(DT) 1243 (Del-HC), CIT v. Elegant Homes (P) Ltd. (2003) 259 ITR 232 (Raj) : 2003 TaxPub(DT) 378 (Raj-HC) and Asstt. CIT v. K.L. Jolly & Sons (2007) 18 SOT 501 (Del-Trib) : 2007 TaxPub(DT) 1488 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 1-4-1998 to 28-4-1998
INCOME TAX ACT, 1961
Section 158BD Section 69C
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