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TMI Blog2024 (11) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account. We therefore hold that addition of share capital has not been made based on incriminating material found during search. AO in the assessment order u/s 153A has assessed income at Rs 9,40,000/- against returned loss of Rs 60,000 , thus making only addition of share capital of Rs 10,00,000 u/s 68 of the Act. Therefore, in view of case of Abhisar Buildwell (P) Ltd [ 2023 (4) TMI 1056 - SUPREME COURT] addition cannot be sustained in present case without there being incriminating material. We accordingly delete the addition of share capital u/s 68 of Income Tax Act made by the AO - Assessee appeal allowed. - Shri Ss Viswanethra Ravi, Judicial Member And Shri Jagadish, Accountant Member For the Appellant : Shri Rakesh Joshi, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he residential/business premises in the cases of Golden Shelters Pvt. Ltd., NKV Krishna Group on 16.10.2019 and the office premises of the assessee-company being the group concern was also covered in the search operation. The A.O initiated assessment proceedings u/s. 153A of the Act and made the addition of share capital introduced by Shri NKV Krishna and Smt. K Preetha of Rs.5,00,000/- each in cash u/s. 68 of the Act. The A.O in the assessment order has noted that during the course of search and seizure action it was found that there are 137 concerns for which books of accounts are maintained in the Rutland Towers office and Mr Sarvan Kumar who was maintaining the tally data stated the cash deposit and introduction of share application mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the form of share capital , therefore the addition made emanated from the incriminating material found during the course of search. The Ld. CIT(A) confirmed the addition made u/s. 68 of the Act as nature and source has not been proved and affirmed that it is to be taxed at special rate as per provisions of section 115BBE. 4. The Ld. Authorized Representative (A.R) of the assessee before us has argued that the share capital of Rs. 10 Lakhs has already been recorded in regular books of account, therefore in view of the decision of Hon ble Supreme Court in the case of PCIT vs. Abhisar Buildwell (P.) Ltd. [2023] 454 ITR 212 (SC), addition u/s 68 on the basis of regular books of account cannot be sustained The Ld. AR has argued that the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash into share application money and unsecured loan /loan and advance was listed and assessee company name does not figure in any of these documents. The AO has made the addition based on the general statement that unaccounted cash was introduced as share capital without referring to any specific documents. The documents produced by the Ld DR as incriminating material was the copy of cash book and ledger account of Shri NKV Krisha and Preetha ji, which are entries of regular books of account . We therefore hold that addition of share capital of Rs 10,00,000/ has not been made based on incriminating material found during search The AO in the assessment order u/s 153A has assessed income at Rs 9,40,000/- against returned loss of Rs 60,000 , t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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