No Addition can be made Merely on Ground of Non-Production of Directors and Non-Furnishing their Residential Address: ITAT [Read Order]

The Delhi bench of Income Tax Appellate Tribunal ( ITAT ) while allowing the appeal of Assessee M/S OM Shubham Investment & Finance Pvt. Ltd has held that no addition is sustainable merely on the ground of non-production of Directors and non-furnishing their residential address.

A single bench of Judicial Member H. S. Sidhu held while considering the appeal of Assessee against the Revenue wherein Advocate for Assessee stated that Revenue authority has not properly appreciated the evidence filed by the Assessee and decide the issue in the dispute against them.

Advocate for Assessee also added that first appellate authority ignored and failed to notice all the necessary document which explains the fact that Assessee company sold its shareholding to various companies and received Rs.10 lakhs which were duly confirmed by filing replies to AO regarding the details of shareholder and as such, the addition so made should have been deleted.

On contrary to this the counsel for Revenue calls for the attention of Tribunal and said that certain enquiries made by AO established the fact that the identity and creditworthiness of shareholders had not been proved neither the genuineness of the transaction also has been established.

Judicial Member, Sidhu heard both the parties and perused the records and observed that all relevant documents are produced before AO as well as CIT (A). At the same time, written submissions and copies of the case laws were filed before Tribunal evidencing that company sold its shareholding to various companies, the details regarding shareholders were duly confirmed through replies to AO.

Accordingly, bench opinioned that addition cannot be sustained on the basis of non-production of Directors and non-furnishing their residential address. The Tribunal also directed the AO to decide the issues in dispute afresh, as per law, after examining all the documents filed by the assessee and issue notices to the shareholders, if necessary and proceed further, as per law.