In a significant turn of events for Shivam Securities P.Ltd, the Income Tax Appellate Tribunal of Kolkata revisited the company’s AY 2014-15 assessment under ITA No. 554/Del/2019. The case revolved around a substantial infusion of share capital and premium amounting to Rs. 25,54,50,000, with the Assessing Officer raising doubts over the genuineness of the transactions involving sixteen corporate entities.
The company faced scrutiny for spelling inconsistencies and the homogeneity of documents submitted by investor companies. Despite providing ample documentation including ITRs, bank statements, and audited financials, the AO expressed dissatisfaction due to non-appearance of directors from the investor companies and reliance on a third-party statement from a known entry operator. The Tribunal highlighted deficiencies in the CIT(A)’s decision-making process, pointing out the need for detailed reasons in judicial decisions and remanded the case for a fresh assessment.
The Tribunal’s decision allows Shivam Securities another opportunity to substantiate the genuineness of its transactions. This case underscores the importance of thorough documentation and the procedural rights of taxpayers to a fair hearing. It also emphasizes the appellate body’s role in ensuring that assessments are just and based on concrete evidence rather than presumptions.
Shivam Securities P.Ltd Appeals Against Share Capital and Premium Infusion Assessment for AY 2014-15
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform