ACIT Vs AL-Arsh Exports Pvt Ltd. (ITAT Delhi)
ITAT Delhi Upholds Deletion of ₹15 Crore Share Capital Addition: Section 68 Onus Discharged
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) dismissed the Revenue’s appeal and upheld the deletion of ₹15 crore added under section 68 on account of alleged unexplained share application money received by the assessee company in AY 2014-15.
The Tribunal noted that the assessee had fully discharged the onus under section 68 by furnishing confirmations, income-tax returns, bank statements, and source-of-source details of all 23 investor companies. Notices issued under section 133(6) were duly complied with, and no adverse statements of directors or employees of the investor companies were recorded by the Assessing Officer.
It was further observed that the addition was made merely on the basis of a trial balance impounded during survey, without any independent inquiry during assessment or remand proceedings. Once the assessee established identity, creditworthiness, and genuineness, the burden shifted to the AO, which remained undischarged.
Finding no perversity in the detailed reasoning of the CIT(A), and relying on settled judicial precedents, the ITAT held that the addition was unsustainable. Consequently, the Revenue’s appeal was dismissed, and the assessee’s cross-objection was rendered academic and dismissed accordingly
FULL TEXT OF THE ORDER OF ITAT DELHI
