2024 (11) TMI 704

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ctober 26, 2023, passed by the Income Tax Appellate Tribunal, "C" Bench, Kolkata (Tribunal) in I.T.A No.1842/Kol/2017, for the assessment order 2009-10. The revenue has raised the following substantial questions of law for consideration : - i) Whether on the facts and in law, the Hon'ble ITAT is justified in setting aside the order of the Ld. CIT(A) and deleting the additional made by the A.O. towards unexplained share capital and share premium of Rs.15,51,00,000/- u/s. 68 of the Act by holding that the assessee had discharged its onus to prove the identity and creditworthiness of the share subscribing companies and the genuineness of the transactions overlooking the fact that not even a single Director of the share subscribing ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tisfaction of Assessing Officer would justify addition of said amount to income of assessee? We have heard Mr. Amit Sharma, learned standing counsel appearing for the appellant and Mr. Kartik Kurmy, learned counsel for the respondent/assessee. The issue which falls for consideration is whether the learned Tribunal was justified in setting aside the addition made under Section 68 of the Act. The learned Tribunal has examined the factual position and has rendered the following finding :- "8. We also take note of the fact that all the share subscriber companies have filed their return of income with the department which have been either processed u/s. 143(1) of the Act for which intimations have been issued or have been assessed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....editworthiness of all the subscriber companies by going through the records and the net worth of each of them. It is also noted that all the investing companies have substantial own funds available with them to make investment in the assessee. In this respect, all the investing companies have also explained their source of funds in their reply to notices issued u/s. 133(6) of the Act. 8.2. From the perusal of the paper book and the replies filed by share subscribing companies in response to notice u/s. 133(6) of the Act, it is vivid 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 applicatio....