CIT Vs GLIX Securities Private Limited (ITAT Kolkata)
Share Capital & Loans Fully Explained – 9.35 Cr u/s 68 Addition Collapses: Documents Win, Suspicion Fails – Once Identity, Creditworthiness & Genuineness Proved, 68 Cannot Survive
Revenue reopened Assessee’s case alleging that share capital/premium of ₹2,25,00,000 & unsecured loans of ₹7,10,00,000 were routed through shell companies & therefore liable to addition u/s 68. AO held that though Assessee furnished complete evidences—names, PAN, addresses, audited accounts, bank statements—summons u/s 131 were not complied with by most parties, & concluded that the funds represented Assessee’s own unaccounted money introduced through accommodation entries.
CIT(A), after detailed verification, examined each share subscriber & each loan creditor individually, relied on confirmations, financials, bank trails, & repayment patterns, called for remand report, & held that identity, creditworthiness & genuineness were fully proved. CIT(A) also applied binding rulings—Gagandeep Infrastructure, Mayawati, Vodafone India Services, PCIT Vs Sreeleathers, Ambe Tradecorp—& held that source-of-source need not be proved for AY prior to 2013-14, & that loans subsequently repaid cannot be treated as unexplained.
Tribunal observed that Assessee had discharged the primary onus by filing complete documentary evidences; mere non-appearance to summons cannot override legally acceptable financial documents. Repayment of loans in later years further established genuineness. AO acted only on suspicion without rebutting Assessee’s evidence. Following multiple Calcutta HC decisions (Rahul Premier, Narayan Tradecom, Alom Extrusions, Edmond Finvest, Parwati Lakh Udyog), Tribunal upheld deletion of entire addition of ₹9,35,00,000. Revenue’s appeal dismissed; Assessee’s CO dismissed as not pressed.
