Agamani Vanijya Pvt. Ltd. vs. Assessing Officer

Parties Involved

Facts Summary

The assessee, Agamani Vanijya Pvt. Ltd., filed an appeal against the order passed by the Commissioner of Income-tax (Appeals) under section 250 of the Income Tax Act, 1961. The appeal was directed against the reassessment order passed by the Assessing Officer under section 147 of the Act. The assessee challenged the reassessment order on various grounds, primarily contesting the addition of Rs. 30 lakh under section 68 of the Act. The assessee argued that the addition was based on a sale of equity shares held since FY 2007-08 and that the reassessment was not warranted. The Department argued that the transaction was part of a layering of funds by an accommodation entry operator. The Tribunal reviewed the material and found that the transaction was a sale of investment and not a fresh unsecured loan or share capital. The Tribunal set aside the order of the Commissioner of Income-tax (Appeals) and deleted the impugned addition.…

Legal Issues

• 1. Whether the addition of Rs. 30 lakh under section 68 of the Act is justified.

Judgment Outcome

Decided in favour of Assessee.

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