Amount received as share premium: Applicability of Section 68
- The Assessee had issued share capital at premium. On scrutiny, the Assessing Officer called for the various details pertaining to the share application money and opined that the same was taxable under section 68 of the Income tax Act.
- Since Assessee’s main grievance was that it was not aware of the final date of hearing fixed on 22.08.2019, this implied that no proper opportunity was given by the Commissioner of Income Tax (Appeals) before passing the impugned order, so there was violation of natural justice. Be that as it may be, however, Assessee was also expected to be vigilant and should have pursued the appeal earnestly and diligently. The Assessee should have filed the correct postal address as well as correct e-mail id to the Commissioner of Income Tax (Appeals) if there was any change and, thereafter, pursue the appeal diligently by filing written submissions as well as documents, if so advised, in support of the claim and be present either through its director or through Authorised Representative and explain the facts and law in support of the grounds raised by it.
- Hence, it was inferred that the impugned orders of the Commissioner of Income Tax (Appeals) were set aside and the appeals were restored back to the file of Commissioner of Income Tax (Appeals) with a direction to adjudicate the grounds of appeal on merits after hearing the Assessee/ going through the submissions/ documents and to pass a speaking order both on facts as well as on law and if necessary call for remand report in accordance to law.