Assessee-company, a registered NBFC, had raised share capital and premium from fifteen corporate entities. Assessing Officer noted that when summons under section 131 were issued to directors of these companies, they failed to appear personally. He branded these companies as ‘shell entities’ and added the entire amount as unexplained cash credit. Tribunal deleted the addition on the ground that the assessee had placed before Assessing Officer a voluminous paper book containing all requisite documents, including PAN details, income tax return acknowledgments, and audited financial statements of all fifteen subscriber companies-Further, subscribers were active taxpayers who had confirmed transactions in response to notices issued under section 133(6),\u00a0 since audited balance sheets of subscribers demonstrated a substantial net worth, which was far in excess of amounts invested, addition made by Assessing Officer was delted. High Court affirmed the order of the Tribunal. (AY. 2012-13]<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68: Cash credits-Share capital-Shell entities-PAN details, income tax return acknowledgements, and audited financial statements of subscriber companies who had confirmed transactions in response to notices issued under section 133(6)-Order of the Tribunal deleting the addition was affirmed.[S.131, 133(6), 260A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64360","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gK4","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64360"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64360\/revisions"}],"predecessor-version":[{"id":64361,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64360\/revisions\/64361"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}