Addition based on non-appearance of directors of subscribing company untenable

ITO Vs KDG Projects Pvt. Ltd. (ITAT Kolkata) ITAT Kolkata held that non-compliance to summons issued u/s 131 of the Act or non-appearance of the directors of the subscribing companies cannot be basis for making addition as the assessee has proved the identity, creditworthiness of the investors and genuineness of the transactions. Facts- The company was incorporated on 20.12.2005 and in FY 2011-12 issued equity shares to various private limited companies at a high premium. Accordingly the AO called upon the assessee to furnish various details/evidences/information which were duly furnished by t...