Non-Appearance of Directors Not Sufficient to Treat Share Capital as Bogus: ITAT Kolkata

Advertisement Baba Metalics Private Limited Vs ITO (ITAT Kolkata) In a combined ruling involving reassessment proceedings and addition under Section 68 of the Income-tax Act, the Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) allowed both appeals filed by the assessee for Assessment Year 2012-13. The Tribunal held that reassessment proceedings initiated on the basis of incorrect and mechanically recorded reasons were invalid, and further ruled that additions towards share capital and share premium could not be sustained where the assessee had furnished documentary evidence establ...