DCIT Vs Bhawani Alumina Products Pvt. Ltd. (ITAT Kolkata)
ITAT Kolkata held that CIT(A) rightly deleted addition under section 68 of the Income Tax Act since identity and creditworthiness of share purchased duly explained. Accordingly, appeal of revenue dismissed.
Facts- The assessee being a company M/s Bhawani Alumina Products Pvt. Ltd. engaged in the business of manufacturing of Aluminium goods, having its factory at Jalan Complex and Jangalpur in Howrah and in Orissa. The return of income of the assessee was selected for scrutiny, notices u/s 143(2) and 142(1) were issued. AO after considering the submission made by the assessee held that Rs. 2,06,50,000/- in the form of share capital being bogus in nature and accordingly added back u/s 68 of the Act. Penalty proceedings has also been initiated.
CIT(A) allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that CIT(A) after going over the every aspects of the case of the assessee and arguments furnished by him have clearly established that the assessee has been able to prove identity and creditworthiness and thereafter adjudicated the matter regarding the addition of Rs. 2,06,50,000/-. Also held that there is no illegality in the impugned order. The Ld. CIT(A) has not only discussed the case of the assessee rather adjudicated the same with judicial pronouncement and documentary evidences. We do not find any infirmity in the impugned order. Accordingly, the appeal of the revenue is hereby dismissed.
