April 2022
Proviso to section 68 inserted vide Finance Act, 2012 requiring the Assessee to prove source in respect of share premium money; operates prospectively from A.Y. 2013-14. Merely because the lender parties did not respond to summons/notices of the Assessing Officer; that cannot be sole ground to make addition u/s 68 when otherwise the documentary evidences were duly produced by the Assessee
By Jagdish T. Punjabi | Chartered Accountant
Devendra Jain | Advocate
4 AdhoiVyapar (P.) Ltd. vs. ITO
[2021] 91 ITR(T) 582 (Mumbai-Trib.)
ITA No.: 7308 to 7311 (MUM.) of 2019
A.Ys.: 2009-10 to 2012-13;
Date of order: 1st October, 2021
Proviso to section 68 inserted vide Finance Act, 2012 requiring the Assessee to prove source in respect of share premium money; operates prospectively from A.Y. 2013-14. Merely because the lender parties did not respond to summons/notices of the Assessing Officer; that cannot be sole ground to make addition u/s 68 when otherwise the documentary evidences were duly produced by the Assessee
FACTSAssessee-company received share application money from various parties. As evidence, the assessee furnished various documents like share application form, PAN Card, confirmation from share-applicants regarding investment, relevant pages of bank passbook/statement, income-tax acknowledgement for the year, statement of income, financials for the relevant year and letter of allotment. It also submitted copies of Board Resolution, Memorandum and Articles of Association in case of corporate applicants. The assessee summarized the net worth position of all the share-applicants which substantiated that all the entities had sufficient net worth to make the investment in the assessee-company and were filing their ITRs since past several years ranging from 5 to 15 years.
Because few of the applicants failed to respond to summons u/s 131, the Assessing Officer concluded t
