MATRA KAUSHAL ENTERPRISES LTD.,SECUNDERABAD vs. ACIT, CENTRAL CIRCLE- 3, NEW DELHI

This appeal is filed by the assessee against the order of the ld CIT(A)-4, Hyderabad dated 03.06.2016, wherein, the addition of Rs. 25 lakcs made by the ld AO u/s 68 of the Act on account of amount invested as share capital in the assessee company by another company.

The brief facts of the case shows that the assessee is a company engaged in trading of Voltage Stablizer. It filed its return of income on 28.09.2013 declaring Nil income. It is assessed u/s 143(3) on 31.03.2016 @Rs. 25,00,000/-.

The ld AO noted that M/s. Kaushalya Global Limited amalgamated with the assessee company by the order of Hon'ble High Court w.e.f 16.09.2012. The share capital of the amalgamated company got increased and the details were asked from the assessee. The investor company M/s. Gawaraja Merchants Pvt. Ltd having address of P-27, Prince Street, 3rd Floor, Kolkata invested Rs. 25 lacs in the share capital of the assessee company. On enquiry, it was found that at the address given, investor is not available. The assessee also admitted before the ld AO that they are not in a position to file any confirmation. Thus, the addition of Rs. 25 laks was made by the