Total share capital couldn't be held as unexplained if only some investors didn't respond to confirmation notice

Addition can be made only for amount which pertained to those subscribers/investors to share capital whose particulars could not be verified and who did not respond to notices issued by Assessing Officer

Section 68 of the Income-tax Act, 1961 - Cash credits (Share capital) - Assessment year 2006-07 - Assessee company issued share capital at 1000 per cent premium and received Rs. 1.1 crore on that count just after few months of its incorporation - Assessing Officer during course of assessment issued notice under section 133(6) to investors - Some investors did neither respond to notice nor submit confirmation - On basis of same, Assessing Officer added entire amount under section 68 - However, Commissioner and Tribunal deleted entire addition holding that some investors had responded and furnished particulars elicited and assessee disclosed identity of all investors - Whether addition could be made only in respect of subscribers/investors whose particulars could not be verified and who did not respond to notices issued by Assessing Officer - Held, yes [Paras 7 and 8] [Partly in favour of assessee]

Refer:
[2014] 43 taxmann.com 269 (Delhi)
HIGH COURT OF DELHI
Commissioner of Income-tax -IV
v.
Empire Buildtech (P.) Ltd