Bidit Financial Management Pvt. Ltd. vs. DCIT, Circle-7(1), Kolkata

Parties Involved

Facts Summary

During the assessment year 2012-13, Bidit Financial Management Pvt. Ltd. issued 97,500 shares with a face value of Rs. 10/- each and a premium of Rs. 190/- to various allottees. The Assessing Officer issued summons under section 131 of the Income Tax Act, 1961 to the Principal Officer of Bidit Financial Management Pvt. Ltd. to produce all the share allottees. However, the Inspector reported that the companies were neither traceable nor their credentials ascertainable. The Assessing Officer made an addition of Rs. 1,95,00,000/- on account of share application money being added as cash credit under section 68 of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) confirmed the addition. The assessee appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer under section 68 of the Income Tax Act, 1961 is justified.
• 2. Whether the disallowance under section 14A read with Rule 8D of the Income Tax Rules, 1962 is justified.

Precedents Relied Upon

Similar Judgements

• Happy Homes & Houses Pvt. Ltd. vs. ITO, Ward 9(2)

  Kolkata Bench benchAY 2012-13Allowed

• I.T.A. No.424/Kol/2020

  Kolkata bench

• Refiral Solutions Pvt. Ltd. Vs Income Tax Officer, Ward-3(5), Gurgaon

• Caravan Corporate Management Pvt. Ltd. vs. Income Tax Officer-6(1), Kolkata

  Kolkata Bench benchAY 2012-13Allowed

• Silverlake Traders Pvt. Ltd. vs. ITO

  Kolkata bench

• Aryan Promoters Pvt. Ltd. vs. DCIT

  Kolkata benchAY 2012-13Allowed