Jai Bhola Trading Co. Pvt. Ltd. Vs. IT Ward 9(3), Kolkata
Parties Involved
Facts Summary
The assessee, Jai Bhola Trading Co. Pvt. Ltd., filed its return of income on 29.09.2012, declaring a total income of ₹4,16,751/-. The case was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS), and statutory notices along with a questionnaire were issued. The assessee complied with these notices by providing ITR, audited accounts, bank statements, and replies from investors. However, the assessee did not comply with the summons issued by the Assessing Officer (AO) under Section 131 of the Act for the production of the directors of the subscriber companies for cross-examination. Consequently, the AO concluded that the assessee failed to explain the share capital/share premium, treating it as unexplained cash credit under Section 68 of the Act and making an addition to the income in the assessment dated 07.03.2015. The assessee appealed this decision before the Commissioner of Income-tax (Appeals) (CIT(A)), which was dismissed. The assessee then approached the Income Tax Appellate Tribunal (ITAT).…
Decision in favour of
Assessee
Legal Issues
- 1. Confirmation of addition of ₹1,43,00,000/- by the CIT(A) as made by the AO on account of share capital/share premium being unexplained cash credit under Section 68 of the Act.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
6 precedents cited in this judgement.
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