2023 (5) TMI 359 - AT - Income Tax

Addition u/s 68 - Unexplained share capital and share premium - HELD THAT - We find that the assessee has received share capital and share premium, but it did not submit any detail justifying this transaction demonstrating the identity of the applicants as well as their creditworthy and genuineness of the transaction. It has not submitted anything before the ld. CIT(Appeals), therefore, it is very difficult for the Tribunal to discuss the details. There are very limited information available on the record. There is no denial to the fact that fresh capital has been introduced by the assessee and it failed to explain the source of such capital with the plausible evidence. Therefore, we do not have any hesitation in confirming the finding of the revenue authorities - Appeal of the assessee is dismissed.

Summary

Issues:
The appeal before ITAT against the order of ld. Commissioner of Income Tax (Appeals) confirming addition u/s 68 of the Income Tax Act.

Details:
The assessee filed return of income showing a loss. Original assessment order u/s 147 read with 143(3) was passed. Ld. Commissioner set aside the order u/s 263, and a fresh assessment order u/s 144 was passed. It revealed receipt of fresh share capital with premium. Ld. Assessing Officer made addition of Rs.3,93,00,000 as the assessee failed to respond to investigation summons.

The assessee appealed to CIT(Appeals) but did not respond to notices, leading to an ex-parte confirmation of the addition. Tribunal issued notices which were returned undelivered. With no submissions justifying the transaction, identity, creditworthiness, or genuineness, the Tribunal upheld the addition due to lack of evidence. The appeal was dismissed for lack of merit.

Result:
The appeal of the assessee was dismissed by ITAT Kolkata on April 27, 2023.