Joint Commissioner of Income Tax, OSD vs. AFP Manufacturing Co. P. Ltd.
Parties Involved
Facts Summary
The Revenue has appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 29.03.2025, for AY 2018-19. The Revenue challenges the deletion of an addition of Rs.1,44,34,290/- made under Section 68 of the Income Tax Act, 1961. The assessee received share capital and share premium aggregating to Rs.2,10,00,000/- during the year under consideration. The assessee furnished the names, PAN, and amounts of premium received but failed to prove the creditworthiness of the investors. The CIT(A) deleted the addition without ascertaining the creditworthiness of the investors. The assessee had allotted shares to Anil Kumar Agarwal, Raj Bala, and Puneet Agarwal against unsecured loans received in preceding years, hence no fresh funds were infused.…
Decision in favour of
Assessee
Legal Issues
- 1. Deletion of addition of Rs.1,44,34,290/- made under Section 68 of the Income Tax Act, 1961.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
6 precedents cited in this judgement.
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