Case Law Details
ACIT Vs Gowthami Chemicals & Pesticides (P) Ltd. (ITAT Visakhapatnam)
In this case, the assessee has furnished the confirmation letters explaining the identity of the shareholder, address and sources of income of the contributor to the share capital along with the evidence for land holdings and copies of IT returns in 4 cases before the AO. The assessee has discharged its burden with regard to the identity, genuineness of share capital and also explained the source of share capital. The AO did not make any enquiry to verify the correctness of the information furnished by the assessee and bring any evidence to establish that the contributors to share capital does not have sufficient source or the source explained by the share holders is bogus. The CIT(A) also observed that the shares were allotted in favour of the contributors. It is evident from the above that the revenue has not discharged it’s burden to prove that the shareholders did not have credit worthiness. The Ld.CIT(A) followed the order of this tribunal and the decision of Hon’ble Apex court in the case of Lovely Export cited and allowed the appeal of the assessee. Therefore, we do not find any reason to interfere with the order of the Ld.CIT(A) and the same is upheld.
FULL TEXT OF THE ITAT JUDGMENT
This appeal is filed by the revenue against the order of the Commissioner of Income-Tax (Appeals)[CIT(A)], Rajahmundry vide I.T.A No.25/2014-15/ACIT/C-1/RJY/2015-16 dated 21.03.2016 for the assessment year 2011-12.
2. Ground No.1 and 8 are general in nature which does not require specific adjudication.
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