Case Laws Analysis
REFERRED ITO v. Bhagwat Marcom (P) Ltd. 2019 TaxPub(DT) 5402 (Kol-Trib)
REFERRED ITO v. Sohail Financials Ltd 2018 TaxPub(DT) 6558 (Del-Trib)
REFERRED Rick Lunsford Trade & Investment Ltd. v. CIT 2017 TaxPub(DT) 0915 (SC)
REFERRED CIT v. Kerala Sponge Iron Ltd. 2015 TaxPub(DT) 3551 (Ker-HC)
REFERRED Panna S. Khatau v. ITO 2015 TaxPub(DT) 2978 (Mum-Trib)
REFERRED Bisakha Sales (P) Ltd. v. CIT 2014 TaxPub(DT) 3992 (Kol-Trib)
REFERRED CIT v. Empire Builtech (P) Ltd. 2014 TaxPub(DT) 1850 (Del-HC)
REFERRED CIT v. MAF Academy (P.) Ltd. 2014 TaxPub(DT) 0087 (Del-HC)
REFERRED CIT v. Nipun Builders & Develpers Pvt. Ltd. 2013 TaxPub(DT) 0526 (Del-HC)
REFERRED CIT v. Nova Promoters & Finlease (P) Ltd. 2012 TaxPub(DT) 1558 (Del-HC)
REFERRED V.I.S.P. (P) Ltd. v. CIT & Anr. 2004 TaxPub(DT) 0776 (MP-HC)
REFERRED CIT v. Ruby Traders & Exporters Ltd. 2003 TaxPub(DT) 1106 (Cal-HC)
REFERRED Sumati Dayal v. CIT 1995 TaxPub(DT) 1173 (SC)
REFERRED CIT v. Sophia Finance Ltd. 1994 TaxPub(DT) 0556 (Del-HC)
REFERRED CIT v. Precision Finance Pvt. Ltd. 1994 TaxPub(DT) 0368 (Cal-HC)
REFERRED CIT v. Margaret S Hope Tea Co. Ltd. 1993 TaxPub(DT) 0102 (Cal-HC)
REFERRED M.A. Unneeri Kutty v. CIT 1992 TaxPub(DT) 0754 (Ker-HC)
REFERRED Nizam Wool Agency v. CIT 1992 TaxPub(DT) 0336 (All-HC)
REFERRED CIT v. United Commercial & Industrial Co. (P) Ltd. 1991 TaxPub(DT) 0095 (Cal-HC)
REFERRED CIT v. Hashimara Industries Ltd. 1989 TaxPub(DT) 0123 (Cal-HC)
REFERRED Oriental Wire Industries (P) Ltd. v. CIT 1981 TaxPub(DT) 0731 (Cal-HC)
REFERRED C. Kant & Co. v. CIT 1980 TaxPub(DT) 1090 (Cal-HC)
REFERRED Prakash Textile Agency v. CIT 1980 TaxPub(DT) 0435 (Cal-HC)
REFERRED Shankar Industries v. CIT 1978 TaxPub(DT) 0901 (Cal-HC)
REFERRED CIT v. Durga Prasad More 1971 TaxPub(DT) 0375 (SC)
REFERRED Daulatram Rawatmull v. CIT 1967 TaxPub(DT) 0110 (Cal-HC)
REFERRED Sreelekha Banerjee & Ors. v. CIT 1963 TaxPub(DT) 0444 (SC)
REFERRED Kale Khan Mohammad Hanif v. CIT 1963 TaxPub(DT) 0420 (SC)
REFERRED Mansfield & Sons v. CIT 1963 TaxPub(DT) 0118 (Cal-HC)
REFERRED Lakhmichand Baijnath v. CIT 1959 TaxPub(DT) 0117 (SC)
 
The Tax Publishers2020 TaxPub(DT) 0062 (Kol-Trib)

INCOME TAX ACT, 1961

Section 68

Assessee had shown addition to shed and building along with land and land development and AO had not disputed clinching factual aspects of addition to corresponding fixed assets. There was further no quarrel that instead of making payment to concerned parties, assessee opted for issuing share capital. Thus, it was not an instance of outright sale of shares as projected at revenue's behest and thus, AO erred in law and on facts in treating above purchase of fixed assets followed payment by way of share capital subscription as an instance of unexplained cash credits under section 68.

Income from undisclosed sources - Addition under section 68 - Issuance of shares against purchase of fixed assets treated as unexplained cash credit -

Assessee-company issued shares to certain parties. AO treated the same as unexplained credit under section 68 and made addition. Held: Assessee had shown addition to shed and building along with land and land development and AO had not disputed clinching factual aspects of addition to corresponding fixed assets. There was further no quarrel that instead of making payment to concerned parties, assessee opted for issuing share capital. Thus, it was not an instance of outright sale of shares as projected at revenue's behest and thus, AO erred in law and on facts in treating above purchase of fixed assets followed payment by way of share capital subscription as an instance of unexplained cash credits under section 68.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16



IN THE ITAT, KOLKATA BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT