Baba Healthcare Pvt. Ltd. vs. ACIT, Circle-1, Faridabad
Parties Involved
Facts Summary
The case involves Baba Healthcare Pvt. Ltd. (the Assessee) which filed its return of income for the assessment year 2016-17 declaring a taxable income of Rs. 85,43,330. The Assessing Officer (AO) observed that the Assessee received share premium from five parties during the year. The AO noted that the share premium was justified by the Assessee with a valuation report dated 9-9-2015. However, for amounts received from Mass Securities P Ltd (Rs. 21 lakhs) and Deepit Real Estate P Ltd (Rs. 40 lakhs), the AO doubted the credibility of the source of funds. The AO issued a notice under Section 133(6) of the Income Tax Act to verify the identity and creditworthiness of the investors. Upon examination, the AO found that both investor companies had returned losses and there were suspicious transactions in their bank statements, leading the AO to add Rs. 61 lakhs under Section 68 of the Act. This addition was upheld by the National Faceless Appeal Centre (NFAC). The Assessee provided various documents to prove the legitimacy of the transactions.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the Learned NFAC was justified in sustaining the addition of Rs. 61 lakhs made by the Learned AO under Section 68 of the Act on account of share premium and share capital received by the Assessee.
Judgment Outcome
Decided in favour of Assessee.
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