Case Law Details
ITO Vs Natraj Mercantile Pvt Ltd (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT) Kolkata heard the appeal in the case of ITO vs. Natraj Mercantile Pvt Ltd regarding the applicability of Section 68 of the Income Tax Act to cash transactions. This article provides an overview of the case and its implications.
Background of the Case: The case involves an appeal filed by the revenue against the order of the Ld. CIT(A)-7, Kolkata. The dispute revolves around the applicability of Section 68 of the Income Tax Act to certain transactions.
Revenue’s Grounds: The revenue raised several grounds in the appeal, primarily related to the addition of Rs. 7,99,86,000 made by the Assessing Officer (AO) on account of share capital and premium. The key issue was the lack of identity of the creditors, genuineness, and creditworthiness of the transactions.
Assessing Officer’s Position: The Assessing Officer noted that the assessee received share capital and premium of Rs. 7,99,86,000 during the relevant assessment year. To verify the authenticity of these transactions and the identity and creditworthiness of the share subscribers, the AO requested the directors of the subscriber companies to appear before them with relevant documents. However, none of them appeared.
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