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TMI Blog2024 (6) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in M/s Delsey India Pvt. Ltd. which was a joint venture between M/s Sapphire Trade Associates pvt. Ltd. and M/s Delsey India Pvt. Ltd. with 49% 51% share respectively. We find that the AO has made the addition on basis of observations that the assessee is a new company formed in AY 2014-15 as recorded in the assessment order wheresas is wrong as the assessee is an old company. Besides these the general observations given by the AO without pointing out any specific defect or deficiency on the evidences and explanation furnished by the assessee is wrong. We note that the AO has made detailed investigation/enquiry even by issuing notice u/s 133(6) and 131 of the Act which were duly responded and complied with by all the subscribers. As the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and evidences qua the issue of share capital/ share premium which were accordingly filed comprising the copies of ITRs, audited accounts, share application forms, share allotment letters, bank statements, memorandum of articles of associations etc. in respect of each of the share holders. Besides the AO issued notice u/s 133(6) of the Act in all the eleven (11) share holders which were duly replied by furnishing the requisite information. In most of the cases, the intimation u/s 143(1) of the Act were also furnished by the subscribers. The AO issued summons u/s 131 of the Act to six parties which were complied with by registering their personal appearances and confirming these transactions before the AO. The AO in the assessment order not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransactions with the assessee. Thereafter the A.R also pointed out that the summons were also issued u/s 131 to six parties who duly appeared before the AO and confirmed the transactions and also furnished the information/details as desired by the AO. The Ld. A.R submitted that neither the AO nor the Ld. CIT(A) has pointed out any specific defect/deficiency as to how the share capital/ share premium received by the assessee during the year fulfills the conditions as laid down in section 68 of the Act. The Ld. A.R submitted that ld CIT(A) after reproducing the AO s finding in assessment order simply affirmed the same by noting that the assessee has not controverted the finding of the AO and has not filed any evidences whereas as a matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... page 2 para (i) of the assessment order that the assessee was incorporated in AY 2014-15 whereas as a matter of fact the assessee was already a existing company. The Ld. A.R therefore prayed that the order passed by the Ld. CIT(A) is wrong and against the facts on record because of all the details were available before the Ld. CIT(A) which were ignored completely and the Ld. CIT(A) just relied by the conclusion recorded by the AO which is devoid of any merit and substance. 6. The Ld. D.R, on the other hand, stated that there is no creditworthiness of the investors though the source was available with them. The Ld . D.R therefore requested the bench that these are nothing but transactions entered into by the assessee to route its money into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has justified the issuance of share capital at a premium as the money collected were to be invested in M/s Delsey India Pvt. Ltd. which was a joint venture between M/s Sapphire Trade Associates pvt. Ltd. and M/s Delsey India Pvt. Ltd. with 49% 51% share respectively. We find that the AO has made the addition on basis of observations that the assessee is a new company formed in AY 2014-15 as recorded in page 2(i) in the assessment order wheresas is wrong as the assessee is an old company. Besides these the general observations given by the AO without pointing out any specific defect or deficiency on the evidences and explanation furnished by the assessee is wrong. We note that the AO has made detailed investigation/enquiry eve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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