RAJESH BALIA, J. - (1.) WE have heard learned Counsel for the appellant.
(2.) THIS appeal under Section 260A of the Income -tax Act, 1961, is against the order dated May 20, 2004, passed by the Income -tax Appellate Tribunal, Jodhpur Bench, Jodhpur. The respondent -assessee is a company and the issue relates to the assessment year 1997 -98. The assessee -company has filed return of income declaring Rs. 3,700 as income for the relevant assessment year. The issue now involved before us and which was before the Tribunal was relating to additions of Rs. 5,80,000 made by the assessing authority on account of unexplained share capital/share application money which was confirmed by the Commissioner of Income -tax (Appeals) under Section 68 of the Income -tax Act, 1961. Rs. 70,000 were added by the Assessing Officer as unexplained share capital shown to be invested by seven investors, namely, Shri Kailash Chandra Chhabra, Smt. Seema Chhabra, Sandeep Kothari, Smt. Seema Kothari, Sanjay Shah, Smt. Sonali Shah and Smt. Heema Shah, who had contributed share capital out of money advanced by the assessee. The Assessing Officer has held that the source of investment made by the investors had not been explained by the assessee and, therefore, the same has been held to be income of the company from undisclosed sources under Section 68 of the Income -tax Act, 1961.
(3.) SIMILARLY , the Assessing Officer has added Rs. 5,10,000 received by the assessee as share application money from M/s. Jay Stocks, Mumbai, Master Setu Kothari, Shri Suresh Agarwal, M/s. Sound Point Export P. Ltd. and M/s. Rolex Point Laboratories Ltd. in varying sums, by finding that while their existence is not disputed, their investment in the company was doubted and the same was not accepted as deposit genuinely made by those persons. Thus, considering the amount of share capital received by the assessee as unexplained cash credit, Rs. 5,10,000 were added as income of the assessee from undisclosed source.;