Addition for share application money cannot be made for mere non-service of summon to directors of investment company

ACIT Vs M/s. Swiftsol (I) Pvt. Ltd. (ITAT Nagpur)

Conclusion: Addition under section 68 of share application money received by assessee on the reason that summons issued under section 131 to the directors of the investment company for verification returned unserved was unjustified as assessee had substantiated share capital received by it by furnishing relevant details and no onus was cast on the assessee during relevant assessment year  to produce the persons or the books from investment companies.

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