Ekalavya Gift Gaileries Private Limited Vs ITO (ITAT Delhi)
These appeals by Ekalavya Gift Galleries Pvt. Ltd. were filed before the Income Tax Appellate Tribunal (ITAT), Delhi, against the orders of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), Delhi, dated 15 March 2024, for Assessment Years (AYs) 2016–17 and 2017–18. Since both appeals involved similar issues, the Tribunal heard them together and issued a common order, taking AY 2016–17 as the lead case.
Background and Assessment Proceedings
The assessee’s return was initially processed under section 143(1) of the Income Tax Act, 1961, and later selected for limited scrutiny to verify whether share premium funds were from disclosed sources. During assessment, the assessee submitted incorporation documents, financial statements, valuation reports, bank statements, and confirmations from investor companies. Notices under sections 133(6), 142(1), and 143(2) were issued, and most investors confirmed their investments. However, the Assessing Officer (AO) rejected the explanations and added the entire share application money to income under section 68 of the Act.
Appeal before CIT(A)
The assessee appealed, arguing that all relevant details of investors were provided. However, the CIT(A) upheld the addition, citing failure to produce investors personally before the AO.
Assessee’s Grounds before ITAT
