Case Law Details
Aryavrat Vintrade Pvt. Ltd. Vs ITO (ITAT Kolkata)
n the case of Aryavrat Vintrade Pvt. Ltd. versus the Income Tax Officer (ITO), the appellant contested cash credit additions made under section 69. This article examines the proceedings and outcomes of the appeal before the ITAT Kolkata.
Analysis: The appellant, Aryavrat Vintrade Pvt. Ltd., appealed to the Tribunal against the order of the Commissioner of Income Tax (Appeals) concerning additions totaling Rs. 72,00,000 under section 69. The grounds of appeal primarily revolved around the contention that the additions were erroneously made without due consideration of relevant provisions.
During the assessment, the Assessing Officer noted significant increases in investments under “Current Investments” in unlisted equities and preference shares. However, the appellant argued that these investments were duly recorded in the books, challenging the basis for treating them as unexplained cash credits.
Upon appeal, the Commissioner of Income Tax (Appeals) dismissed the case for want of prosecution, failing to address the substantive points in dispute and provide adequate reasons for the decision. This procedural irregularity led to the appeal being allowed for statistical purposes.
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