Case Law Details
ITO Vs Rajshree Integrated Cold Chain Pvt. Ltd. (ITAT Kolkata)
ITAT Kolkata held that it is unjustified to assess share capital and share premium as unexplained cash credit u/s. 68 merely for high share premium as identities and creditworthiness of the share applicant and genuineness of the transactions duly established.
Facts- During assessment, AO noted that assessee has raised share capital including share premium, totaling for an amount of Rs.2,76,50,000/-. AO sought details and explanation on this from the assessee. Not convinced by the details and documentary evidence placed on record, Ld. AO by applying the test of human probability made the addition u/s. 68 of the Act.
CIT(A) after elaborately dealing with the facts of the case on all the three dimensions of section 68 of the Act in respect of identity and creditworthiness of the share subscribers and also the genuineness of the transactions, deleted the addition so made. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Hon’ble Calcutta High Court in the case of PCIT Vs. Naina Distributors Pvt. Ltd. held that mere non-production of director cannot be the ground for making any addition in the hands of assessee u/s 68 of the Act.
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