Provisions of section 68 not attracted as investment by investor companies explained

ACIT Vs Surya Global Steel Tubes Ltd (ITAT Delhi)

ITAT Delhi held that provisions of section 68 of the Income Tax Act are not attracted as the investment by the investor companies is duly explained. Further, identity, genuineness of transactions and creditworthiness of investor companies duly proved.

Facts- The AO primarily based on the statements of Sh. Babu Lal Banka (Entry Operator) and the Directors of the investor companies) and many others held, relying on the enquires and the information gathered by the Inspector, that the entities were not existing at the address mentioned and the assessee Surya Global Steel Tubes Ltd had not produce the Directors for examination but only filed all the documentary evidences.

Having gone through the entire Assessment Order, we find that the addition has been made solely based on the statements of the individuals and report of the Inspector with regard to absence of company at the addresses mentioned.

Aggrieved, the assessee filed appeal before the ld. CIT(A) who deleted the addition made by the AO. Affronted by the order of the ld. CIT(A) deleting the addition, the Revenue filed appeal before the Tribunal.

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