Addition for bogus share capital introduced as accommodation entries justified

PCIT Vs NDR Promoters Pvt. Ltd (Delhi High Court) Conclusion: Addition made by AO was justified with regard to introduction of bogus share capital in the form of accommodation entries as the transactions done were clearly sham with excellent paper work to camouflage their bogus nature. Held: In the instant case, assessee had received money in the form of share capital/share premium. AO made an addition recording that the five companies were „creation‟ of and de facto operated by one Chartered Accountant, who had set up about 90 companies/firms including the aforesaid 5 companies for provid...