Savera Commotrade Private Limited Vs ITO (ITAT Kolkata)
ITAT Kolkata – Addition U/s 68 on Share Capital & Premium of ₹6.99 Cr Deleted; Identity, Creditworthiness & Genuineness Proved
In Savera Commotrade Pvt Ltd (AY 2009-10), the AO treated share capital & share premium of ₹6.99 Cr received from 20 investors as unexplained cash credit u/s 68, alleging lack of compliance & non-appearance of directors. The assessee had furnished complete details of investors including PAN, ITRs, audited financials, bank statements & replies to notices u/s 133(6). The ITAT observed that notices were duly served & investors’ net worth was substantially higher than investments, establishing creditworthiness.
The Tribunal held that mere non-appearance of directors after a long gap cannot justify addition when documentary evidence exists. Relying on multiple Calcutta HC rulings, it concluded that the assessee discharged the three ingredients of s.68 — identity, creditworthiness & genuineness. As the AO ignored evidences & wrongly recorded non-compliance, the addition was unsustainable. Accordingly, the addition was directed to be deleted & the assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 05.06.2025 for the AY 2009-10.
