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Income Tax Officer, Ward-7(1), New Delhi Vs. M/s. Décor Investment & Finance Ltd

Case No: ITA No. 5637/Del/2018
Court: INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH “B”: NEW DELHI
Date: 3/13/2025

Parties Involved

appellantIncome Tax Officer, Ward-7(1), New Delhi
respondentM/s. Décor Investment & Finance Ltd

Facts Summary

During the year under consideration, the assessee company, M/s. Décor Investment & Finance Ltd, received share capital and share premium amounting to Rs 10.40 crores from 12 investor companies. The assessee provided detailed documentation including names, addresses, PAN, ITRs, bank statements, and confirmations from the investors. The transactions were reflected in the balance sheets of the investor companies, indicating their creditworthiness and the genuineness of the transactions. The Assessing Officer (AO) issued notices under section 133(6) of the Income-tax Act, 1961, to the investors, who responded with the required details. However, the AO was not satisfied and issued summons to the directors of the investor companies, which were stationed in Kolkata. The directors requested to appear before an officer in Kolkata, but this request was not accepted by the AO. Consequently, the AO made an addition under section 68 of the Act for Rs 10.40 crores. The Commissioner of Income Tax (Appeals)-3, New Delhi, deleted this addition, leading the revenue to appeal to the Income Tax Appellate Tribunal.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the Learned Commissioner of Income Tax (Appeals) was justified in deleting the addition made in the sum of Rs 10.40 crores on account of share capital and share premium received by the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

1 precedent cited in this judgement.

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