Action Tie-up Pvt. Ltd Vs DCIT (ITAT Kolkata)
Section 68 Addition Deleted as Third-Party Statements Uncorroborate; Investment Sale Proceeds Cannot Be Taxed Under Section 68 Without Evidence: ITAT Kolkata
The appeals before the Income Tax Appellate Tribunal, Kolkata comprised cross appeals by the assessee and the Revenue for Assessment Years (AYs) 2015-16 and 2016-17 arising from the orders of the Commissioner of Income-tax (Appeals).
For AY 2015-16, the assessee challenged the reopening of assessment under Sections 147 and 148 of the Income-tax Act, 1961. The assessee, engaged in trading and investment activities, had raised share capital and share premium during FY 2011-12 and invested the funds in shares of other companies. The assessment for AY 2012-13 had earlier been completed under Section 143(3) after verification of the share capital and share premium through notices under Section 133(6), with no additions. Following a change in shareholding, the assessee became part of the Aggarwal Group, and amalgamation of certain companies with the assessee was approved by the National Company Law Tribunal with effect from 1 April 2020. A survey under Section 133A was conducted on the assessee during search proceedings on the Aggarwal Group. Subsequently, notices under Section 148A(b) and Section 148 were issued for AY 2015-16, treating sales of investments as non-genuine and making additions under Sections 68 and 69C.
