Case Law Details
Gold Finch Jewellery Ltd Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that addition solely on the basis of investigation wing report unsustainable as onus was discharged by the assessee as PAN card and bank statements were duly submitted
Facts- During the Course of survey proceedings, it was found that during the year under consideration the assessee has introduced share capital on fictitious name and in the name of companies and entities who was not having financial capabilities for such investment. During post survey inquiry, these entities had accepted the fact that they were only involved in providing accommodation entries. It was also noticed that they had made investment in shares on receipt of money from the assessee company.
These facts were recorded on oath u/s. 131 of the Act, 1961 and the persons categorically accepted in the statements recorded that they had received cash from Shri Mahendra Shah, Director of the assessee company for making investments in the assessee company i.e. M/s. Goldfinch Jewellery Ltd.
From the above, it is clear that the names of these entities were utilized by Shri Mahendra Shah, Director of the assessee company for introducing unaccounted income in the garb of share capital and share premium in M/s. Goldfinch Jewellery Ltd.
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