Section 68 Share Premium Addition Cannot Be Based on mere Summons Default

Montrose Commodities Pvt. Ltd. Vs ITO (ITAT Kolkata) Assessee, a private limited Company had received share capital & premium of ₹1.58 crore during AY 2012-13. The case was selected for scrutiny due to large share premium received. During assessment, Assessee furnished complete details including names & addresses of subscribers, audited financials, bank statements & confirmations. AO, however, made addition u/s 68 holding that since summons issued u/s 131 were not complied with by directors of subscriber companies, genuineness & creditworthiness remained unverified. According...