2024 (5) TMI 1518 - HC - Income Tax

Addition u/s 68 - Addition of share capital and premium in absence of identity of creditors and genuineness and creditworthiness of the entire transactions - ITAT deleted addition - HELD THAT - Tribunal has recorded a finding that the assessee has demonstrated successfully the nature of the sum received during the year and the source of the said sum being received from the share applicants and complete evidence has been submitted. AO has not pointed out any specific error in all the documents nor any discrepancies in the information provided by the assessee. Tribunal on facts found that the AO has not paid any independent enquiry to verify the genuineness of the transaction in spite of the assessee having furnished all details and documents before the AO. No substantial question of law arises for consideration.

Summary

The Calcutta High Court heard an appeal by the Revenue under Section 260A of the Income Tax Act, 1961, challenging the deletion of an addition of Rs. 13,56,00,000 under Section 68 of the Act regarding share capital and premium. The Court found that the Tribunal had re-evaluated the facts, concluding that the assessee had adequately demonstrated the nature and source of the sum received, with no specific errors or discrepancies found by the Assessing Officer. As a result, the Court determined that no substantial legal question arose, leading to the dismissal of the appeal.