Case Law Details
Prompt Barter Private Limited Vs ITO (ITAT Kolkata)
Introduction: In a recent case involving Prompt Barter Private Limited versus the Income Tax Officer (ITO) at the Income Tax Appellate Tribunal (ITAT) in Kolkata, a significant decision was made regarding the addition of income tax. The primary issue revolved around the consideration of evidence to establish the identity and creditworthiness of investors, as well as the genuineness of the transaction. The ITAT directed the AO to delete the income tax addition, and in this article, we will delve into the details of this case, the arguments presented, and the reasoning behind the ITAT’s decision.
Detailed Analysis:
1. Background of the Case: The case involved Prompt Barter Private Limited, an appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal was related to the assessment year 2012-13.
2. The Contested Issue: The primary issue in this case was the addition of INR 2,73,00,000 made by the Assessing Officer (AO) under section 68 of the Income Tax Act, 1961. The AO had considered this amount as an unexplained cash credit.
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