BHOOMIA BUTTONS PVT LTD,NEW DELHI vs. ACIT CIRCLE-4(2), NEW DELHI

ORDER PER CHALLA NAGENDRA PRASAD: JUDICIAL MEMBER:

This appeal is filed by the assessee against the order of learned Commissioner of Income-Tax (Appeals), New Delhi dated 22.03.2019 for the assessment year 2010-11. The assessee has raised the following grounds:

“1. On the facts and circumstances of the case and in law, the learned Commissioner of Income-Tax(Appeals) has erred in law in upholding the validity of proceedings u/s 147 read with section 148 of the Act.”

2. That both the initiation of proceedings and the assessment framed without satisfying the pre-conditions for invoking the provisions of section 148 of the Act is invalid and untenable.

3. Without prejudice to the ground 1 & 2 above, on facts and circumstances of the case, the learned Commissioner of Income- Tax(Appeals) has erred in law in upholding the addition of Rs.15 lacs made u/s. 68 of the Act on account of share application money received.”

The assessment was completed under Section 143(3) read with section 147 of the Act, determining the loss at Rs.2,82,385 under normal

Act. Learned Departmental Representative further submits that while completing the assessment, the Assessing Officer disallowed Rs.15 lacs under Section 68 of the Act. The Learned DR submits that during the assessment proceedings, the assessee was required to explain the share capital/premium amounting to Rs.15 lacs received by the assessee during the assessment year under consideration from M/s. Attractive Finlay (P) Ltd. managed and controlled by S.K. Jain Group. However, the assessee did not respond to the notice and the questionnaire issued by the Assessing Officer and in the absence of any evidence adduced to prove the genuineness/identity and creditworthiness of the shareholder, the Assessing Officer treated the said amount of Rs.15 lacs as unexplained credit under Section 68 of the Act.