Case Law Details
PCIT Vs Narsingh Ispat Ltd. (Calcutta High Court)
HC upholds deletion of Addition for Share Capital as identity, creditworthiness of the share applicants and genuineness of the transaction as provided under Section 68 of the Act have been established.
In the case of PCIT vs. Narsingh Ispat Ltd., the Calcutta High Court upheld the deletion of additions made under Section 68 of the Income Tax Act concerning share capital. The judgment highlights the establishment of identity, creditworthiness, and genuineness of transactions.
Analysis: The appeal before the Calcutta High Court arose from the order of the Income Tax Appellate Tribunal (ITAT) concerning additions made under Section 68 of the Income Tax Act. The appellant, the Revenue, contested the deletion of additions amounting to Rs. 19,14,50,500, primarily arguing against the established genuineness of share capital.
The Court examined the factual findings of the Commissioner of Income Tax (Appeals) Kolkata – 20 [CIT(A)], who meticulously analyzed the circumstances surrounding the share capital transactions. In particular, the Court noted the involvement of two companies, M/s. Honesty Dealers Private Limited and M/s. Seaview Agencies Private Limited.
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