Case Law Details
Wellman Logistics Pvt. Ltd Vs ACIT (ITAT Kolkata)
In the case of Wellman Logistics Pvt. Ltd vs. ACIT (ITAT Kolkata), the Income Tax Appellate Tribunal (ITAT) considered the appeal regarding an addition of Rs. 1.26 crore under Section 68 of the Income Tax Act, 1961. This addition pertained to the share capital and share premium received by Wellman Logistics Pvt. Ltd from nine companies. The Assessing Officer (AO) had raised concerns about the creditworthiness of these companies and deemed the amount unexplained, thus invoking Section 68 for taxation.
The core contention before the ITAT was whether Wellman Logistics had adequately substantiated the identity, creditworthiness, and genuineness of the transactions involving the share capital and premium. The tribunal examined various documents submitted by the assessee, including company master data, share application and allotment details, Form No. 2 filed with the Registrar of Companies (ROC), relevant bank statements, balance sheets, income tax returns, and other relevant documents for the assessment year 2015-16.
Key points considered by the ITAT included:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
