Aspective Vanijya Pvt. Ltd. Vs DCIT (ITAT Kolkata)
Summary: The ITAT Kolkata allowed both appeals of Aspective Vanijya Pvt. Ltd. for AYs 2013-14 and 2015-16 and deleted additions made principally under Section 68. For AY 2013-14, the Tribunal deleted the addition relating to share capital/share premium after noting that the assessee had furnished confirmations, bank statements and income-tax return acknowledgements establishing the identity and creditworthiness of the subscribers and genuineness of the transactions. It further noted that share capital/premium from the same parties had been accepted in the preceding year after scrutiny. The Tribunal held that the Assessing Officer could not sustain the addition merely on an Inspector’s report that the subscribers were not found at the stated addresses, particularly when that adverse material had not been confronted to the assessee. For AY 2015-16, the Tribunal similarly deleted the addition of ₹12.55 crore relating to unsecured loans from group companies, observing that there were continuing business transactions, opening balances, advances and repayments and that supporting documents had been furnished. The Tribunal also allowed the assessee’s claims relating to interest expenditure of ₹7.27 lakh incurred on loans used for financial investment activities and legal/professional expenses of ₹11.83 lakh incurred in connection with business-related loan litigation. It further deleted the additional disallowance under Section 14A read with Rule 8D and corresponding adjustment to book profit under Section 115JB, noting that exempt dividend income was only ₹296 and the assessee had already made a suo motu disallowance of ₹5,810.
