Ischolar Education Services Pvt. Ltd. Vs DCIT (ITAT Delhi)
In the case Ischolar Education Services Pvt. Ltd. vs. DCIT, the Income Tax Appellate Tribunal (ITAT) Delhi Bench dismissed the appeal filed by the assessee against the order passed by the Commissioner of Income Tax (Appeals)-4, New Delhi, dated August 14, 2019. The matter relates to the Assessment Year 2015–16, where the assessee had declared a loss of ₹1.46 crore. However, the Assessing Officer (AO) computed the income at ₹77.73 lakh after invoking Section 68 of the Income Tax Act, 1961, due to unexplained share premium and failure to substantiate investor details.
The appeal was heard ex parte as the assessee remained absent throughout the proceedings before the Tribunal. During the hearing, the Departmental Representative argued that the assessee had not explained the basis for the share premium of ₹330 per share, nor had it furnished sufficient evidence to prove the identity, creditworthiness, or genuineness of the transactions involving the shareholders. The only documentation submitted pertained to one shareholder, Sumathi Vutukuri, who had a relatively low income but was shown to invest over ₹1.12 crore. The company claimed that the funds were loaned by another shareholder, Hari Pawan Vellanki, but failed to provide any documentary support like his bank statements, ITRs, or confirmations.
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