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TMI Blog2025 (2) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... also have been given.
The affidavit sworn by Chartered Accountant of the assessee is either have to be accepted in whole or rejected in toto. Once it is accepted that there were bogus entries on the assets side and corresponding entire on the liability side should also have been accepted. Taking into consideration entire facts of the case, the addition made on account of bogus share capital and share premium is deleted.
Addition is deleted under the provisions of Income Tax Act, however, we do not subscribe to the unscrupulous method adopted by the assessee for obtaining higher credit facilities from the bank by window dressing balance sheet. The conduct of the assessee is deplorable. X X X X Extracts X X X X X X X X Extracts X X X X ..... rious persons. Narrating facts of the case, he submitted that the Chartered Accountant of assessee has window dressed the balance sheet for obtaining higher credit facilities from the bank had shown share capital and share premium to the tune of Rs. 3,30,00,000/- whereas in actual no share capital was received by the assessee/appellant. It was merely a book entry this fact was admitted by auditors of the company and MD before the AO. The Assessing Officer forwarded the bank details received from assessee from where alleged share capital/share premium was received. The AO has mentioned the fact in assessment order that banks have confirmed that neither there was such branch or bank account number wherefrom alleged share capital was received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2020) 268 taxmann.com 392 (SC.). 4. Per contra, Shri Amar Pal Singh representing the department vehemently defended the order of CIT(A) and the AO. The ld. DR submits that a perusal of Audited balance sheet of the assessee shows that there is increase of share capital and share premium to the extent of Rs. 3.30 crores. The explanation furnished by the assessee is merely an afterthought. He thus, prayed for upholding the impugned order and dismissing appeal of the assessee. 5. Both sides heard, orders of the authorities below examined. The solitary issue assailed by the assessee in appeal is the addition of Rs. 3.30 crores u/s. 68 of the Act on account of share capital and share premium. During assessment proceedings, the AO questioned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng effect on the liability side should also have been given. The affidavit sworn by Chartered Accountant of the assessee is either have to be accepted in whole or rejected in toto. Once it is accepted that there were bogus entries on the assets side and corresponding entire on the liability side should also have been accepted. Taking into consideration entire facts of the case, the addition of Rs. 3.30 crores made on account of bogus share capital and share premium is deleted. 6. Before parting with the order we would like to observe that the addition is deleted under the provisions of Income Tax Act, however, we do not subscribe to the unscrupulous method adopted by the assessee for obtaining higher credit facilities from the bank by wind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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