COMMISSIONER OF INCOME TAX Vs. KUBER SECURITIES LTD.

JUDGEMENT

(1.) This appeal by the Revenue under Sec. 260A of the Income Tax Act, 1961 ('Act') is directed against the impugned order dated 31st July 2009 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 2352/Del/2005 for the Assessment Year ('AY') 1997 -98.

(2.) By an order dated 7th December 2011 the Court framed the following questions of law for determination:

(3.) The Assessee, Kuber Securities Limited, filed its return of income on 30th November 1997 disclosing a net loss of Rs. 3,93,28,695. The Assessing Officer ('AO') processed the return under Sec. 143 (1) (a) of the Act. The AO noted that there has been an increase in the share capital during the year under the head 'Share Application Money' from Rs. Nil as on 31st March 1996 to Rs. 13,27,50,000 as on 31st March 1997. Since no details or confirmation from the share Applicants or proofs of identity or creditworthiness was furnished, the entire amount was added under Sec. 68 of the Act to the income of the Assessee.