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2024 (2) TMI 521 - AT - Income TaxUndisclosed cash credit u/s 68 - non-appearance of directors - As per DR assessee has failed to prove the genuineness of transaction and creditworthiness of the share applicants - CIT(A) deleted the addition - HELD THAT:- All the share applicants are (i) income tax assessees, (ii) they are filing their income tax returns, (iii) share application form and allotment letter is available on record, (iv) share application money was made by account payee cheques, (v) details of the bank accounts belonging to share applicants and their bank statements, (vi) in none of the transactions there are any deposit of cash before issuing cheques to the assessee, (vii) all the share applicants are having substantial creditworthiness represented by their capital and reserves. Hon'ble Calcutta High Court in the case of PCIT Vs. Naina Distributors Pvt. Ltd [2023 (6) TMI 1362 - CALCUTTA HIGH COURT] has decided the issue in favour of the assessee by holding that mere non-production of director cannot be the ground for making any addition in the hands of assessee u/s 68 - Thus addition made by the Ld. AO towards share capital including share premium is directed to be deleted. Thus, grounds taken by the revenue in this regard are dismissed.
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