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TMI Blog2024 (11) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... uty of the Assessing Officer to have done such an exercise. Tribunal on facts found that all the share subscribing companies have responded to the notices issued u/s 138(6) of the Act and made their submissions and produced documents. Therefore, it is the duty on the Assessing Officer to deal with those documents, point out any discrepancies and then make the addition. However, the Assessing Officer failed to do so and the CIT(A) also committed same error. Therefore, we find the Tribunal was well justified in allowing the assessee s appeal and in doing so, the learned Tribunal has also taken note of various decisions of this Court and recorded its reasons for allowing the appeal. - THE HON BLE THE CHIEF JUSTICE T. S. SIVAGNANAM And THE HO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the entire assessment proceedings and failed to explain its non-existence at its registered address, share capital, reserves and surplus, net worth and turnover so as to justify the share premium charged by it within a short duration of seven months after its incorporation? iii) Whether on the facts and in law, the Hon ble ITAT is justified in setting aside the order of the Ld. CIT(A) and deleting the additional made by the A.O. towards unexplained share capital and share premium of Rs.15,51,00,000/- u/s. 68 of the Act even though the decision of the Hon ble Supreme Court in the case of Pr. CIT, Central-1 vs. NRA Iron Steel (P) Ltd. in Civil Appeal No.2463 of 2019 squarely covers the issue that assessee is under a legal obligation t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. AO during the assessment proceedings nor anything substantive brought on record to justify the addition made by him. Ld. AO has simply added the amount of share capital and share premium on the ground that assessee has not produced the directors/shareholders. Ld. AO has ignored the reply given in response to notice issued u/s. 133(6) of the Act which are on record under duly acknowledged seal and stamp of his good office. From the perusal of the order of Ld. CIT(A), we note that Ld. CIT(A) has perused the evidence in the nature of documents and details and on their examination has sustained the addition de by the Ld. AO. Thus, going by the records placed by the assess and by an the share subscribing companies in response to notices i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant department would strenuously contend that on examination of the documents which were produced by the share subscribing companies, it is evidently clear that none of those companies had any creditworthiness to invest in the shares of the assessee company, that too, at a high premium. Unfortunately, examination of the factual position as sought for cannot be done in an appeal filed under Section 260A of the Income Tax Act and it is the duty of the Assessing Officer to have done such an exercise. The learned Tribunal on facts found that all the share subscribing companies have responded to the notices issued under Section 138(6) of the Act and made their submissions and produced documents. Therefore, it is the duty on the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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