DCIT Vs Marsh Fincom Pvt. Ltd. (ITAT Pune)
ITAT Pune held that addition in respect of share capital not sustainable as no incriminating material found during course of search regarding non-genuine share capital. Accordingly, addition towards the same deleted.
Facts- Assessee is a private limited company engaged in the business of buying and selling of shares and securities and financing loans. A search and seizure action u/s 132 of IT Act was conducted on 20-08-2014 at the business & residential premises of different members/ associate concern of the Jhaveri Group at Mumbai/ Aurangabad & their directors & business concern. The search warrant was issued u/s 132 of the IT Act in the name of the assessee & its directors namely Mr. Sandeep Jhaveri. A notice u/s 153A of the IT Act was issued on 21.08.2015.
During the course of search proceedings, Rs.17,00,00,000/- was agreed to be offered as additional/ undisclosed income regarding receipts of share application money being non-genuine. However, Rs.10,00,00,000/- was offered to tax for A.Y. 2011-12 and 2012-13 and Rs.3,42,00,000/- was offered to tax for A.Y. 2010-11. It was found by the AO that an amount of Rs.6,62,00,000/- was received towards share application/ premium money during the period under consideration. But out of this amount, only Rs.3,42,00,000/- were offered to tax for the year under consideration being not genuine, and, therefore, the balance amount of Rs.3,20,00,000/- was added by the AO to the income of the assessee on the basis of statement of director of the company recorded u/s 132(4) of the IT Act. AO completed the assessment determining the income at Rs.7,23,95,845/- as against the income returned by the assessee at Rs.4,02,87,010/-.
CIT(A) allowed the appeal of the assessee. Being aggrieved, revenue has preferred the present appeal.
