ITAT Deletes Addition of share capital & premium: AO Fails to Cite Investments Outside Books

ITO Vs Direct Trading Co. P. Ld. (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal filed by the revenue against the order of the CIT(A)-3, Delhi, dated 05.05.2017, concerning the assessment year 2012-13. The primary contention of the revenue was related to the deletion of additions made by the Assessing Officer (AO) on account of unexplained share capital, share premium, and unexplained investment. AO’s Findings The AO observed that the assessee had received a share premium of Rs. 2,03,40,000 from various entities. The AO sought justification for the share premi...