SACHDEV STEEL WORKS PVT. LTD. ,KOLKATA vs. ITO, CIR-1(1), KOLKATA. , KOLKATA

The assessee in this appeal has agitated against the confirmation of addition of Rs.2,48,00,000/- made by the Assessing Officer treating the share application money received by the assessee as unexplained income of the assessee invoking provisions of section 68 of the Act.

At the outset, the ld. Counsel for the assessee has invited our attention to the impugned assessment order to submit that the Assessing Officer during the assessment proceedings noted that the Assessment Year: 2012-13 Sachdev Steel Pvt. Ltd assessee had received share application/share allotment money from the following three parties: Name of the applicants Amount received Bharat Bhushan Sachdev HUF 3000000/- Shangrila Builders Pvt. Ltd. 4500000/- Spoxy Vincom Pvt. Ltd. 17300000/- Total 24800000/- 3.1 The ld. Counsel has further submitted that on being asked to explain about the identity and creditworthiness of the creditors and genuineness of the transaction, the assessee furnished the necessary documents and explained that no fresh share application money was received from the above-noted share subscribers. That the above-noted share subscribers were the group companies/related parties of the assessee company. That there were old outstanding loans of these parties towards the assessee, which were converted into share application money and share were allotted to the assessee company in discharge of old loan liability. However, the Assessing Officer did not examine or consider the above submission and simply made the addition of the aforesaid amount observing that the assessee has not produced any investor for examination before him.

The ld. CIT(A) confirmed the addition so made by the Assessing Officer.

Before us, the ld. Counsel for the assessee has referred to the copy of the paper-book and documents which were also filed before the Assessing Officer. The ld. Counsel for the assessee has invited our attention to page 13 of the paper-book, which is a copy of balance sheet