2023 (8) TMI 73 - AT - Income Tax

Reopening of assessment - Addition of Share Capital made u/s 68 - creditworthiness of the shareholders had remained unexplained because assessee had failed to substantiate its claim that money had come from the coffers of the shareholders - HELD THAT - We find that CIT(A) after considering the submissions of the assessee, remand report of the AO, assessee s reply to the remand report and after considering the various decisions cited in his order has upheld the reopening and also on merits has upheld the addition. Before us, no material has been placed by the Assessee to point out any fallacy in the finding of lower authorities. In such a situation, we find no reason to interfere with the order of CIT(A). Thus the grounds of assessee are dismissed.

Summary

Issues involved:
Reopening of assessment and addition of Share Capital u/s 68 of the Act.

Reopening of assessment:
The case involved the reopening of the assessment u/s 148 of the Act based on information received indicating the Assessee's involvement in bringing in bogus Share Capital. The Assessee failed to substantiate the identity, creditworthiness, and genuineness of the transaction regarding the raised Share Capital. The Assessing Officer (AO) concluded that the Share Capital introduced was bogus, resulting in an addition u/s 68 of the Act. The Commissioner of Income Tax (Appeals) upheld the AO's decision after considering submissions, remand report, and relevant decisions.

Addition of Share Capital u/s 68 of the Act:
The Assessee challenged the reassessment proceedings and the addition made on merits before the Tribunal. The Tribunal noted the absence of the Assessee during various hearings, indicating a lack of seriousness in pursuing the appeal. The Assessee's failure to cooperate led to the dismissal of the appeal. The Assessee's representative argued that the lower authorities were justified in making the addition, emphasizing the Assessee's inability to prove the genuineness of the funds received as Share Capital. The representative highlighted that the Assessee failed to provide essential documents to establish the identity, capacity, and genuineness of the transaction.

Judgment:
After reviewing the material on record, the Tribunal found no grounds to interfere with the Commissioner of Income Tax (Appeals)'s decision to uphold the reopening of assessment and the addition of Share Capital. The Tribunal dismissed the Assessee's appeal, affirming the lower authorities' findings. The lack of evidence presented by the Assessee to challenge the decision resulted in the dismissal of the appeal.

Separate Judgment:
No separate judgment was delivered by the Judges in this case.