https://www.taxtmi.com/caselaws?id=456958 The ITAT Kolkata dismissed the revenue's appeal challenging deletion of addition u/s 68. The assessee had received share capital from subsidiary companies, which the AO questioned regarding identity, genuineness and creditworthiness of subscribers. The CIT(A) found that subsidiary companies were group entities with common directors, formed as SPVs for business expansion and risk mitigation. The transactions were commercial in nature with established creditworthiness. Following precedent in Anmol Stainless case, the Tribunal upheld deletion of addition, confirming that share subscriptions from group companies with substantial creditworthiness and genuine business purpose cannot be treated as unexplained cash credits under section 68. en-us Wed, 19 Apr 2023 00:00:00 +0530 Wed, 28 Aug 2024 19:33:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456958 The ITAT Kolkata dismissed the revenue's appeal challenging deletion of addition u/s 68. The assessee had received share capital from subsidiary companies, which the AO questioned regarding identity, genuineness and creditworthiness of subscribers. The CIT(A) found that subsidiary companies were group entities with common directors, formed as SPVs for business expansion and risk mitigation. The transactions were commercial in nature with established creditworthiness. Following precedent in Anmol Stainless case, the Tribunal upheld deletion of addition, confirming that share subscriptions from group companies with substantial creditworthiness and genuine business purpose cannot be treated as unexplained cash credits under section 68. Case-Laws Income Tax Wed, 19 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456958