High Court at Calcutta · Judgments and reasoned final orders
Principal Commissioner of Income Tax-2, Kolkata v. Karni Infraprojects Private Limited
ITAT/168/2025 (IA No: GA/2/2025) ·
Deletion of Section 68 addition on share capital and share premium where the Assessing Officer conducted no independent inquiry to controvert the documentary evidence furnished by the assessee and the share subscribers.
1. FACTS OF THE CASE
The Revenue appealed under Section 260A against the ITAT order dated 19.12.2024 affirming the CIT(A)'s deletion of an addition made under Section 68 in respect of share capital and share premium received by the assessee.
2. DISCUSSION BY THE COURT
The Division Bench noted that the assessee had placed comprehensive documentary evidence before the AO—including ITRs, audited financial statements, bank statements, and confirmations of all subscriber companies—and that the subscribers had also responded to notices issued under Section 133(6). The AO made no independent inquiry to disprove these documents and relied solely on non-appearance under Section 131. Both the CIT(A) and the ITAT concurrently appreciated the evidence and deleted the addition.
3. JUDICIAL DECISION
Finding no perversity in the concurrent factual findings and no substantial question of law, the High Court dismissed the Revenue's appeal.
4. OUTCOME
Assessee - Revenue appeal dismissed; deletion of Section 68 share capital addition upheld.
5. AKHB REVIEW POINT
Once the assessee and its share subscribers furnish complete Section 133(6) compliances and audited financial records, an addition under Section 68 cannot be sustained if the AO fails to conduct any independent inquiry to impeach the evidence.
Source and verification
4-page official High Court at Calcutta judgment PDF (20260128_WBCHCO0032702025.pdf, 138,890 bytes).
Original PDF: 4 pages · SHA-256: 0de3134656ee58e837058f42f54223db62e585ef17e167d94b6342ca2b162323
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies Section 68 of the Income-tax Act, 1961. Income-tax Act, 2025 equivalence is not verified.
Full 4-page primary judgment PDF text read and verified page-by-page. Affirms concurrent factual findings of CIT(A) and ITAT deleting Section 68 share capital addition.
AI disclosure and professional disclaimer
AI-assisted source review. Independent human approval is not represented.
General research only. Read the complete judgment and verify applicable law and subsequent treatment before reliance.