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IN THE HIGH COURT AT CALCUTTA
T.S.SIVAGNANAM, CHAITALI CHATTERJEE (DAS)
Principal Commissioner Of Income Tax - 2, Kolkata – Appellant
Versus
Minto Park Estates Private Limited – Respondent
| Table of Content |
|---|
| 1. appeal details and assessment year challenge. (Para 1 , 5) |
| 2. legal obligations of assessee under section 68. (Para 13 , 15 , 24) |
| 3. importance of creditor creditworthiness established. (Para 19 , 21 , 22) |
JUDGMENT
(Judgment of the Court was delivered by T.S. Sivagnanam, CJ.)
1. This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act) challenging the order dated April 10, 2024 passed by the Income Tax Appellate Tribunal “A” bench, Kolkata (tribunal) in ITA No. 1276/Kol/2023 for the assessment year 2012-2013. The revenue has raised the following substantial questions of law for consideration:-
1) Whether the Learned Tribunal has committed substantial error in law in deleting the addition of Rs. 1,10,00,000/- made by the Assessing Officer under Section 68 of the Income Tax Act, 1961 on account of share capital/premium as unexplained cash credit despite the respondent assesse failing to establish the genuineness of the transactions as well as identity and creditworthiness of the share subscribers?
2) Whether the Learned Tribunal has committed substantial error in law in deleting the addition made under Section 68 of the Income Tax
The onus lies with the assessee to prove the genuineness of share capital and creditworthiness of subscribers under Section 68 of the Income Tax Act.
The burden of proving the genuineness of share transactions lies with the assessee, requiring evidence of identity, creditworthiness, and genuineness, which must withstand scrutiny beyond mere bankin....
Under s.68, assessee discharges onus with documentary evidence of investor identity, creditworthiness via net worth/scrutiny assessments, and banking genuineness; revenue cannot add based on suspicio....
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