BARKHA SYNTHETICS LTD Vs. ASSISTANT COMMISSIONER OF INCOME

JUDGEMENT

(1.) THIS appeal is preferred by the assessee against the order of the Tribunal, Jodhpur Bench, Jodhpur, dt. 28th Nov., 2001 relating to asst. yr. 1997 -98. [reported as Shree Barkha Synthetics Ltd. v. Asstt. CIT (2002) 75 TTJ (Jd) 1 Against the very same judgment of the Tribunal, the Revenue had also preferred an IT Appeal No. 09/2003 which has been decided on 1st May, 2003 [reported as CIT v. Shree Barkha Synthetics Ltd. by holding that no substantial question of law arose in the case by adverting to the contentions raised before the Tribunal and the facts of the case.

(2.) IN the present case, the AO reached its conclusion that in the previous year relating to assessment year, there has been increase in the share capital of the assessee -company on account of issue of shares. The shares have been issued to the limited companies as well as individuals on the basis of receipt of share applications through banking channels.

(3.) AMONGST individuals, the share application money alleged to have been received from one Umesh Kumar amounting to Rs. 1 lakh was found to be not genuine, inter alia, on the ground that on enquiry, said Umesh Kumar has denied to have made any such investment in the shares of the company. On this basis, the addition of Rs. 1 lakh was made in the income of the assessee from undisclosed sources under Section 68 of the IT Act which was sustained.