The tribunal addressed the appeal by ACIT Central Circle-30, New Delhi, against Kamana Industries Pvt. Ltd., Sonipat, regarding additions made to share capital for the assessment year 2013-14 under ITA No. 4997/DEL/2019.
Case Number: ITA 4997/DEL/2019
Appellant: ACIT Central Circle-30, New Delhi
Respondent: Kamana Industries Pvt Ltd, Sonipat
Assessment Year: 2013-14
Order Date: 2023-07-27
Pronounced On: 2023-07-27
This case arose from an order by the CIT(A)-30, challenging the assessment order passed under section 153A of the Income-tax Act, concerning the additions made on account of share capital amounting to Rs. 7,10,00,000.
The tribunal examined whether the CIT(A) was justified in deleting the additions made on the share capital received by the assessee. The focus was on the absence of incriminating material found during the search concerning the share capital issue. Notably, the tribunal considered the Supreme Court’s decision in PCIT vs. Abhisar Buildwell Pvt. Ltd., which stipulates that the assessment should not be disturbed unless there is incriminating material found during the search.
The tribunal found that the addition made under section 68 of the Income Tax Act as unexplained cash credit based solely on a statement from Mr. Mul Chand Malu was unjustified. It was highlighted that Malu was not a director or an employee of the assessee company and that his statement alone, without corroborative evidence, does not constitute incriminating material.
The tribunal, after careful consideration of the legal precedents and the specifics of the case, decided to delete the addition made under section 68. This decision aligns with the principle that the additions should only be based on concrete incriminating evidence found during the search. Consequently, the appeal by the Revenue was dismissed.
The complete judgment for ITA No. 4997/DEL/2019 was pronounced in open court on 27.07.2023, concluding that the additions made to Kamana Industries’ share capital were unsubstantiated by incriminating material, leading to the dismissal of the appeal.
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