Case Law Details
Shree Automotive Pvt. Ltd. Vs DCIT (ITAT Kolkata)
ITAT Kolkata held that addition under section 68 towards unexplained cash credit unsustainable as assessee has discharged its onus to prove the identity and creditworthiness of the share subscribing company.
Facts- The assessee is engaged in the business as authorised dealer and service centre of Ashok Leyland Ltd. and Mahindra & Mahindra Ltd. Assessee deals in trading i.e. purchase and sale of vehicles and its spares. It is also engaged in providing servicing of vehicles. Return for the year was filed on 28.09.2012 reporting total income of Rs. 1,18,75,637/-. In the course of assessment, Ld. AO enquired about various aspects of claims made by the assessee in its return for which explanation with supporting documents and evidences were called for, and were duly complied with by the assessee. Assessment was completed on assessed total income of Rs.5,39,45,370/-. Additions/ disallowances made in arriving at the said assessed total income are challenged by the assessee.
CIT(A) confirmed all the additions/disallowances. Being aggrieved, the present appeal is filed.
Conclusion- Held that assessee has discharged its onus to prove the identity and creditworthiness of the share subscribing company and the genuineness of the transaction towards sum of Rs.4,01,00,000/- received during the impugned year. Accordingly, considering these facts and in the light of the judicial precedence referred above, we set aside the order of the ld. CIT(A) and delete the addition so made. Accordingly, grounds taken by the assessee in this respect are allowed.
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