PCIT Vs Navnita Dealcom Private Limited (Calcutta High Court)
The Calcutta High Court considered an appeal challenging an order of the Income Tax Appellate Tribunal dated 9 September 2024, by which an addition of ₹1,21,50,000 made under Section 68 of the Income Tax Act, 1961 was deleted. The addition related to alleged unexplained cash credit arising from share capital and share premium received by the assessee, a Non-Banking Finance Company (NBFC). The Assessing Officer had added the amount, and the Commissioner of Income Tax (Appeals) had confirmed it.
The records showed that the assessee produced its registration certificate, Form 2 filed with the Registrar of Companies, and other relevant documents to establish that it was not a shell company. The assessee explained that it had received share application money by issuing 6,075 equity shares of face value ₹10 each at a premium of ₹1,990 per share to a subscribing company. Details of the subscriber company and its Managing Director were furnished, though the Managing Director did not appear before the Assessing Officer under Section 131.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The Court: By this appeal the appellant challenges an order dated 9th September, 2024 passed by the Income Tax Appellate Tribunal on the issue that the Tribunal had deleted an addition of Rs.1,21,50,000/- by the Assessing Officer and confirmed by the learned Commissioner of Income Tax (Appeals) on account of unexplained cash credit in respect of share capital/share premium under Section 68 of the Income Tax Act, 1961.
