The Calcutta High Court concerning a case upheld the order of the Income Tax Appellate Tribunal ( ITAT ) which deleted the addition made under section 68 of the Income Tax Act, 1961 on establishment of the source of income.
The appeal was filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act) which challenged the order passed by the ITAT in favour of respondent assessee,Lal Baba Seamless Tubes Pvt.ltd.
The matter arises under Section 68 of the Act. The Commissioner of Income Tax (Appeal) [CIT(A)] had affirmed the order passed by the Assessing Officer under Section 143(3) of the Act dated 3rd March, 2015. Challenging the same, an appeal was filed by the assessee.
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The Tribunal has done an elaborate exercise to examine the factual position as well as the documents which were filed by the assessee in the form of a paper book.
The Tribunal found that the assessee has established source of source, even though it was not required for the assessment year under consideration. The documents which were called for by the Assessing Officer were admittedly produced before the Assessing Officer though the investors or director appeared in person. Thus, on appreciation of the factual position the Tribunal has granted the relief.
The Tribunal has noted that addition has already been made in the hand of the subscribing company and therefore, no further addition is required to be made in the hands of the assessee. The Tribunal also noted that all the companies are active and have invested money from their own resources.
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The Coram of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya found no questions of law for consideration in this appeal and thus dismissed the appeal.
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