2025 (6) TMI 908

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....ibunal) in ITA No. 1215/Kol/2018, for the assessment year 2012-13. 2. The revenue has raised the following substantial questions of law for consideration : a) Whether on the facts and circumstances of the case, the Learned Income Tax Appellate Tribunal has committed substantial error in law in deleting the addition of Rs. 5,07,00,000/- made u/s 68 of the act on account of bogus share capital & premium? b) Whether on the facts and circumstances of the case, the Learned Income Tax Appellate Tribunal has committed substantial error in law in deleting the addition of Rs. 5,07,00,000/- u/s 68 of the Act by observing that the assessee company had submitted bank statement, audited accounts, copy of income tax acknowledgement, copy of PAN car....

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.... the same to the total income of the assessee. The assessee challenged the order before the CIT(A), which appeal was dismissed and aggrieved by such order the assessee approached the Tribunal. 5. After we have elaborately heard the learned counsel for the parties and carefully perused the materials placed on record, we find that the Assessing Officer has committed a factual mistake which has ultimately led to an order being passed without reference to the nature of the activities done by the assessee. The Assessing Officer proceeded on the basis that the assessee is a company engaged in investment in shares and trading of shares. This finding is factually incorrect as the assessee is a manufacturing company and they have set up their unit ....

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.... the necessary documents in the form of a paper book containing 436 pages which discloses the entire details namely, share application forms, source of funds, bank statement, audited accounts, copy of income tax acknowledgment and copy of PAN card. The learned Tribunal has noted that the Department did not make any objection to the three ingredients which are required to be proved while making an addition under Section 68. Furthermore, the veracity of the documents which were produced by the assessee were never disputed by the Assessing Officer or by the CIT(A). 7. Apart from that, on facts we find that the assessee has not invested any money out of the share capital raised in any other company but the funds so raised have been used to rep....