November 2023
S. 68 – Where the assessee-company had produced all the documents and evidence to establish the identity, genuineness and creditworthiness of investors by filing complete details including their bank statement and audited financial statements, share application money cannot be treated as unexplained or non-genuine merely on the ground that the directors could not appear before the Assessing Officer personally.
38 Dharmvir Merchandise (P.) Ltd. vs. ITO
[2023] 101 ITR (T) 279 (Kolkata - Trib.)
ITA No.: 1938(KOL) OF 2018
A.Y.: 2012-13
Date of Order: 13th December, 2022
S. 68 - Where the assessee-company had produced all the documents and evidence to establish the identity, genuineness and creditworthiness of investors by filing complete details including their bank statement and audited financial statements, share application money cannot be treated as unexplained or non-genuine merely on the ground that the directors could not appear before the Assessing Officer personally.
FACTS
The assessee-company had issued fresh share capital during the year and received a certain sum from three companies. In the course of assessment proceedings, the assessee-company was called upon to explain the source of the said amount of share capital. The assessee company had provided all the details pertaining to the share capital issue.
Further, summons were issued to the directors of the company u/s 131 of the Act. The directors complied with the summons and had fu
