S.R. Chauhan, J.M. - (1.) THIS appeal by assessee for asst. yr. 1997-98 is directed against the order of CIT(A), Ajmer, dt. 2nd Jan., 2001.
(2.) We have heard the arguments of both the sides and have also perused the records including the written submission furnished by both the sides on record. The facts in brief may be stated that the assessee-appellant is a public limited company engaged in manufacturing and sale of synthetic clothes at Bhilwara. During the year under consideration, the assessee went into expansion of its production activity and for this purpose, it raised share capital in two phases and thereby received subscription of Rs. 41,000 and Rs. 54.000 towards it share capital which have been credited in the share application money account. The assessee also raised loans of Rs. 43,51,460 from different persons. All the shares were allotted during the year. The balance sheet of the company is placed on p 313 of paper book, copy of share capital account on p. 305 of paper book, copy of allotment return of shares along with enclosures placed on pp. 357 to 361 of paper book. Out of total share capital of Rs. 90,73,310 credited in the books of assessee the AO doubted genuineness of share application money to the extent of Rs. 23,76,000 received from 17 parties and made addition in respect thereof under Section 68. Similarly, out of the unsecured loans, the AO treated the loans to the extent of Rs. 3,65,000 from six persons as non-genuine and made addition in respect thereof together with an amount of Rs. 53,845 and as interest thereon under Section 68". We now take up the appeal ground-wise.
(3.) GROUND No. 1 disputes the addition of Rs. 23,76,000 under Section 68 in respect of alleged unexplained share application money deposited by the following persons : JUDGEMENT_8785_TLIT0_20010.htm The learned authorised representative of assessee has contended, in his written submission that the share application money to the extent of Rs. 23,76,000, the genuineness of which has been doubted by AO and addition in respect of which has been made, is detailed as under: JUDGEMENT_8785_TLIT0_20011.htm ;