https://www.taxtmi.com/caselaws?id=757474 ITAT Kolkata ruled in favor of the assessee regarding unexplained share capital/premium under section 68. The assessee issued equity shares to two group companies with common directors. Despite AO's concerns about the companies lacking business operations and having only loan transactions, the assessee provided comprehensive evidence including PANs, audited accounts, bank statements, and confirmation letters. The AO issued notices under section 133(6) and summons under section 131, which were duly complied with. The director's statement confirmed the transactions and availability of substantial resources. ITAT found that the assessee proved identity, creditworthiness, and genuineness of transactions, directing deletion of the addition as the companies were not shell entities providing accommodation entries. en-us Thu, 22 Aug 2024 00:00:00 +0530 Tue, 27 Aug 2024 08:18:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757474 ITAT Kolkata ruled in favor of the assessee regarding unexplained share capital/premium under section 68. The assessee issued equity shares to two group companies with common directors. Despite AO's concerns about the companies lacking business operations and having only loan transactions, the assessee provided comprehensive evidence including PANs, audited accounts, bank statements, and confirmation letters. The AO issued notices under section 133(6) and summons under section 131, which were duly complied with. The director's statement confirmed the transactions and availability of substantial resources. ITAT found that the assessee proved identity, creditworthiness, and genuineness of transactions, directing deletion of the addition as the companies were not shell entities providing accommodation entries. Case-Laws Income Tax Thu, 22 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757474