The Kolkata Bench of Income Tax Appellate Tribunal (ITAT) upheld the addition made by the lower authority due to failure to explain the large share premium received.
The assesee Timely Commercial P. Ltd.’s assessment order was passed under Section 144 of the Income Tax Act,1961. Subsequently, the assessee’s case was selected for scrutiny. The Assessing Officer (AO) noted that the assessee raised share capital including share premium of Rs.18,98,07,000/- and he called for details and explanation. However, without satisfying the submissions and creditworthiness of the investors and transactions, the AO made additions and completed the assessment.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) {CIT(A)} who dismissed the appeal. Thus, the assessee filed a second appeal before the tribunal.
The tribunal during the proceedings observed that no one is appearing on behalf of the assessee also there is a delay of 565 days in filing the present appeal which is not backed up by any petition for condonation of delay.
It was also observed that the assessee failed to substantiate the identity and creditworthiness of the investors and genuineness of the transactions of shares. Thus, the assessee has failed to provide satisfactory explanations for proving the large share premium received.
The tribunal after reviewing the facts and submissions of the both parties, a Single member bench of Laliet Kumar (Judicial Member) upheld the addition made by the lower authority.
Abhijit Kundu, counsel appeared for the revenue.
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