Calcutta HC Affirms ITAT Order, Dismisses Revenue Appeal on Section 68 Addition

PCIT Vs Sitka Mercantile (P) Ltd. (Calcutta High Court) Calcutta High Court has dismissed an appeal filed by the revenue, challenging an order of the Income Tax Appellate Tribunal (ITAT) that deleted an addition of Rs. 11,07,50,000/- made under Section 68 of the Income Tax Act, 1961, for the assessment year 2009-10. The case, PCIT Vs Sitka Mercantile (P) Ltd., inv68olved the treatment of share capital and share premium as unexplained credits. The revenue had sought to argue five substantial questions of law. These questions broadly contended that the ITAT erred by: Relying solely on “pa...