M/s. Shree Shoppers Ltd. Vs. Deputy Commissioner of Income-tax

Parties Involved

Facts Summary

The assessee, M/s. Shree Shoppers Ltd., is a company engaged in the business of trading in textile and tyres. The company declared an income of Rs.48,47,180/- for the Assessment Year 2012-13. The case was selected for scrutiny, and a notice under section 143(2) of the Income Tax Act, 1961 was issued. The Assessing Officer treated the share application money and share premium of Rs.5,91,00,000/- received from M/s. Kaushal Holdings Private Limited as bogus and added it back to the total income under section 68 of the Act. The assessee challenged this addition and the legality of the notice issued under section 143(2) of the Act. The Commissioner of Income-tax (Appeals) partly allowed the appeal, confirming the addition under section 68 of the Act. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the order passed by the Commissioner of Income-tax (Appeals) is bad in law and facts.
• 2. Whether the notice issued under section 143(2) of the Act was valid and if not, whether the assessment proceedings are invalid.
• 3. Whether the addition made under section 68 of the Act is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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