J N J MACHINES PRIVATE LIMITED,SURAT vs INCOME TAX OFFICER - WARD 1(1)(3), SURAT

Before: SHRI PAWAN SINGH & SHRI BIJAYANANDA PRUSETH

Hearing: 16/01/2025Pronounced: 04/04/2025

आदेश / O R D E R

PER BIJAYANANDA PRUSETH, AM:

This appeal by the assessee emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) dated 20.02.2024 by the National Faceless Appeal Centre, Delhi /Commissioner of Income-tax (Appeals) [in short ‘Ld. CIT(A)’] for the Assessment Year (AY) 2012-13, which in turn arises out of assessment order passed by Assessing Officer u/s 143(3) of the Act dated 31.03.2015. Grounds of appeal

raised by the assessee are as under:

1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in partly confirming the action of the Assessing Officer by sustaining the addition of Rs.52,00,000/- out of total addition of Rs.6,52,00,000/- u/s 68 of the I.T. Act on account of bogus share application money.

2. It is therefore prayed that above addition made by Assessing Officer and confirmed by CIT(A) may please be deleted.

3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.”

Facts of the case in brief are that assessee filed its return of income declaring the Nil income. The case was scrutinized and found falling in the realm of Section 68 of the Act. The AO noticed that assessee had received equity shares money from twenty-one parties amounting to Rs.12,34,80,000/-. The assessee was asked to produce complete details regarding share application money received during the year under consideration. In reply, the assessee submitted before the AO confirmation of account, return of income, computation of income, bank statement, balance sheet, profit and loss account and capital account in case of all investors. Notices u/s 133(6) of the Act were issued to various investors, who submitted the details called for by the AO. Thereafter, AO issued show cause notice requiring assessee as to why Rs.12,34,80,000/- should not be added to the income of the assessee. Assessee filed reply which was considered by AO and he finally added Rs.6,52,00,0000/- as bogus share application money u/s 68 of the Act. It includes share application money of (i) Rs.6,44,00,000/- from M/s Jaisal Mechatronics Pvt. Ltd., (ii) Rs.4,00,000/- from C.N. Shukadia (HUF) and (iii) Rs.4,00,000/- from Shardaben Shukadia. Aggrieved by the addition made by AO, assessee preferred appeal before CIT(A).

J N J MACHINES PRIVATE LIMITED,SURAT vs. INCOME TAX OFFICER - WARD 1(1)(3), SURAT