Mere Non-Production of Investor Directors Doesn’t Disprove Company Identity – Section 68 Addition for Share application deleted

ITO Vs Cygnus Developers (I)Pvt. Ltd. (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT) Kolkata has dismissed an appeal filed by the Revenue, thereby upholding the Commissioner of Income Tax (Appeals) [CIT(A)]’s decision to delete an addition of Rs. 54,00,000/- made under Section 68 of the Income Tax Act. The dispute centered on the genuineness of share application money received by Cygnus Developers (I) Pvt. Ltd. from three investor companies for the Assessment Year (A.Y.) 2005-06. The Tribunal’s order, pronounced on March 2, 2016, emphasized the assessee’s provision of compr...