SHREE RAGHAV ISPAT (INDIA) PVT.LTD., HYD,HYDERABAD vs. ITO, WARD-3(1), HYD, HYDERABAD

ITA 174/HYD/2016Status: DisposedITAT Hyderabad29 June 2018AY 2011-125 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while identity of parties is established through banking channels, genuineness and creditworthiness require further proof. The assessee was not properly confronted with the AO's findings regarding unserved notices. However, the share application money from one company was not substantiated.

What were the facts?

The assessee received share application money of Rs. 48.00 lakhs. The Assessing Officer (AO) treated this as unexplained credit as the assessee failed to prove the genuineness and creditworthiness of the investors, especially after notices to the investor companies were returned unserved or received no response.

What were the issues?

Whether the assessee proved the genuineness and creditworthiness of the parties from whom share application money was received, and if not, whether the addition made by the AO was justified.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ A ‘ Bench, Hyderabad

Before: Smt. P. Madhavi Devi & Shri S.Rifaur Rahman

Hearing: 27.06.2018Pronounced: 29.06.2018

Per Smt. P. Madhavi Devi, J.M.

This is assessee’s appeal for the A.Y 2011-12 against the order of the CIT (A)-3, Hyderabad, dated 27.11.2015. 2. Brief facts of the case are that the assessee, engaged in the business of manufacturing of steel ingots etc., filed its return of income for the A.Y 2011-12 on 22.01.2013 admitting a total income of Rs.17,88,100. During the assessment proceedings u/s 143(3) of the Act, from the books of account of the assessee, the AO noticed that the assessee has shown to have received share application money of Rs.48.00 lakhs during the year from three

ITA No 174 of 2016 Shree Raghav Ispat India P Ltd Hyderabad.

Ltd, Kolkata and Ba

The order continues below.

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