DCIT Vs Whitelotus Solar Private Limited (ITAT Chennai)
The ITAT Chennai examined a revenue appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2015–16, concerning deletion of an addition of ₹9.99 crore made under Section 68 of the Income-tax Act in respect of preference share capital. The addition was originally made by the Assessing Officer (AO) in proceedings under Section 153A read with Section 143(3) following a search conducted in 2019 in the group to which the assessee belonged.
The assessee had initially filed its return declaring a loss, and the assessment under Section 143(3) resulted in an addition of ₹9.98 crore under Section 68, which was later deleted by the CIT(A) in 2018 after examining evidence regarding the source of funds. Subsequently, following the search, the AO reopened the matter under Section 153A and again made a similar addition of ₹9.99 crore on account of share capital.
The assessee challenged the addition before the CIT(A), contending that no incriminating material was found during the search to justify the addition. It was argued that the issue of share capital had already been examined and decided in earlier proceedings, and there was no change in facts or circumstances. The CIT(A) accepted these submissions and deleted the addition.
