Case Law Details
Blue Lotus Designers Pvt. Ltd Vs ITO (ITAT Kolkata)
Conclusion: Since both the nature & source of the share application received was fully explained by assessee thus, assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants and addition made by AO u/s 68 was based on conjectures and surmises which could not be justified.
Held: AO treated assessee’s share capital / premium of ₹ 2,01,50,000/- as unexplained cash credits u/s 68. He contended that summons u/s 131 remained un-complied with as per lower appellate findings under challenge and all of the assessee’s investor parties were accommodation entry providers which had been rightly treated as bogus in both the lower proceedings. In the facts of the present case, both the nature & source of the share application received was fully explained by assessee. Assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the share applicants. The PAN details, bank account statements, audited financial statements and Income Tax acknowledgments were placed on AO’s record. Without doing so, the addition made by AO was based on conjectures and surmises could not be justified. Thus, no addition was warranted under Section 68.
FULL TEXT OF THE ITAT JUDGEMENT
This assessee’s appeal for assessment year 2012-13 arises against the Commissioner of Income Tax (Appeals)-16 Kolkata’s order dated 27.02.2017 passed in case No.755/CIT(A)-16/Kol/2015-16/W-7(4) involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
