High Court at Calcutta · Judgments and reasoned final orders
Principal Commissioner of Income Tax-1, Kolkata v. M/s Shipra Enclave Private Limited
ITAT 94 of 2025 (IA No: GA/2/2025) ·
Deletion of Section 68 addition of Rs. 6,22,00,000/- on share capital and share premium for AY 2012-13 where assessee produced 'cast iron documentary evidence' establishing identity, creditworthiness, and genuineness of investor companies.
1. FACTS OF THE CASE
During scrutiny assessment for AY 2012-13, the Assessing Officer added Rs. 6,22,00,000/- under Section 68 representing share capital and share premium received by the assessee, alleging that the directors failed to appear personally in response to Section 131 summons. Both the CIT(A) and the ITAT deleted the addition after examining the documentary evidence on record.
2. DISCUSSION BY THE COURT
The Division Bench observed that the assessee had furnished 'cast iron documentary evidence' including income tax return acknowledgments, audited balance sheets, bank statements, share application forms, board resolutions, and replies to notices under Section 133(6) demonstrating that the subscriber companies had substantial net worth far exceeding the investments made. Mere non-appearance of directors pursuant to Section 131 summons could not justify an addition under Section 68 when the AO failed to bring any adverse material on record to rebut the documentary evidence.
3. JUDICIAL DECISION
Holding that the concurrent findings of fact recorded by the CIT(A) and the ITAT suffered from no perversity and raised no substantial question of law, the High Court dismissed the Revenue's appeal and connected stay application.
4. OUTCOME
Assessee - Revenue appeal dismissed; deletion of Rs. 6,22,00,000/- Section 68 addition upheld.
5. AKHB REVIEW POINT
Where share subscribers respond to Section 133(6) notices with complete ITRs, audited accounts, and bank statements proving net worth, mere non-appearance of directors under Section 131 without adverse investigation by the AO does not sustain a Section 68 addition.
Source and verification
7-page official High Court at Calcutta judgment PDF (20260204_WBCHCO0013912025.pdf, 109,427 bytes).
Original PDF: 7 pages · SHA-256: e770ce3a1375e04f7ebcf16f80040def6362faf3f08d7469ad0e5dee02587997
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Applies Section 68 of the Income-tax Act, 1961 for AY 2012-13 (prior to Finance Act 2012 proviso effective 01.04.2013). Income-tax Act, 2025 equivalence is not verified.
Full 7-page primary judgment PDF text read and verified page-by-page. Affirms concurrent factual findings of CIT(A) and ITAT on Section 68 documentary proof.
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