DCIT Vs Kohinoor Bengal Infrastructure Private Limited (ITAT Kolkata)
ITAT Kolkata held that mere non-production of director cannot be the ground for making any addition in the hands of assessee under section 68 of the Income Tax Act. Accordingly, appeal of the revenue dismissed.
Facts- This is an appeal preferred by the Revenue and CO by the assessee against the order of the Commissioner of Income-tax (Appeals), Kolkata-21 dated 29.02.2024 for the AY 2013-14.
The only issue raised by the Revenue against the deletion of addition of ₹1,50,00,000/- by the ld. CIT (A) as made by the ld. AO u/s 68 of the Act, in respect of share capital raised during the year whereas the assessee has filed cross objection challenging the validity of reopening proceedings itself on the ground that there was no tangible material and the reopening is based on the post search enquiries.
Conclusion- Held that CIT (A) has given very comprehensive findings while deleting the addition. The ld. CIT (A) noted that these transactions were routed through banking channel and all the evidences were placed before the ld. AO qua these subscribers. CIT (A) also noted that the assessee has filed all the evidences and the AO has not pointed out any defect or deficiency in these documents on record in the assessment proceedings as well as during remand proceedigns. CIT (A) after following the decision of Hon’ble Jurisdictional High Court in case of CIT Vs. Data ware private Ltd. and in case of PCIT Vs. Naina Distributors Pvt. Ld. dated 28.06.2023, allowed the appeal of the assessee.
