Section 68 Addition Deleted as Earlier Accepted Shares Can’t Be Held Bogus: ITAT Kolkata

DCIT Vs Vedanta Resources Pvt. Ltd (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT), Kolkata dismissed the Revenue’s appeal and upheld the order of the Commissioner of Income Tax (Appeals) deleting an addition of ₹4,81,50,000 made under Section 68 of the Income-tax Act on account of alleged bogus sale of shares. The Tribunal also dismissed the assessee’s cross-objection after setting aside the CIT(A)’s direction to estimate a 5% profit element on the sale consideration, holding that such direction lacked any substantive basis. The case arose after two companies merge...