PRINCIPAL COMMISSIONER OF INCOME TAX 2 KOLKATA vs. M/S MAHALAKSHMI VINIMAY P LTD

OD 6 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE ITAT/249/2023 IA NO: GA/1/2023 PRINCIPAL COMMISSIONER OF INCOME TAX 2 KOLKATA VS M/S MAHALAKSHMI VINIMAY P. LTD. BEFORE : THE HON’BLE THE CHIEF JUSTICE T.S. SIVAGNANAM And THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Date : 13th December, 2023 Appearance : Mr. Aryak Dutta, Adv. Mr. Prithu Dudhoria, Adv. …for appellant. The Court : - This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated 18th May, 2023 passed by the Income Tax Appellate Tribunal B Bench, Kolkata in ITA 35/Kol/2020 for the assessment year 2008-09. The respondent has raised the following substantial questions of law for consideration : (a) WHETHER on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal has erred in law in deleting the addition of Rs.9,67,00.000/- under Section 68 of the Act, 1961 relying upon only on the papers submission made by the Assessee, without considering the law points that when the credit in the particular account books is a fresh credit for which assessee failed to establish the identity, creditworthiness of share holders and the genuineness of the transaction ? (b) WHETHER on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal has erred in law in allowing the

2 appeal of the assessee on addition in respect of the share capital and share premium under Section 68 of the Income Tax Act, 1961 even though the share subscribing company has only meager income in the return of income filed? We have heard the learned Counsel on either side. The short question which falls for consideration in the instant case was whether the assessee was able to prove identity and creditworthiness of the subscribers and the genuineness of the transaction. The learned Tribunal has elaborately gone into the fact and has found that the subscribers have furnished all the documents pursuant to the notices issued by the assessing officer under Section 133(6) of the Act. They had also filed their audited financial statement, the acknowledgement of filing their income tax returns, copies of bank statements to prove their identity and creditworthiness and genuineness of the transaction. The learned Advocate after having gone through the entire fact has found that all the three ingredients have been established by the subscribers. Thus we find that there is no question of law much less substantial questions of law arising out for consideration in this appeal. Accordingly, the appeal is dismissed. Consequently, the application also stands dismissed. (T.S. SIVAGNANAM)

CHIEF JUSTICE

(HIRANMAY BHATTACHARYYA, J.) Pkd/GH.