ACIT, MUMBAI vs. AADHAAR WHOLESALE TRADING AND DISTRIBUTION LTD., MUMBAI

ITA 2635/MUM/2023Status: DisposedITAT Mumbai05 April 2024AY 2012-1334 pages
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What did the Tribunal hold?

The Tribunal held that the assessee had provided sufficient documentation, including a valuation report and evidence of investor credibility, to justify the share premium. The AO's addition under Section 68 was deemed unsustainable as the genuineness of the transaction was established.

What were the facts?

The assessee company issued shares at a significant premium, leading the Assessing Officer (AO) to reopen the assessment. The AO questioned the genuineness of the premium amount due to the company's accumulated losses and lack of a fresh valuation report.

What were the issues?

Whether the addition made by the AO on account of share premium under Section 68 was justified, and if the assessee had provided sufficient evidence to prove the genuineness of the transaction.

Which sections of the Income-tax Act were involved?

Section 68,Section 147,Section 56(2)(viib)

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Cases cited in this judgment(5)Show list

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Heard together (6 matters)

ITA No. 2653/Mum/2023
ITA No. 2635/Mum/2023
ITA No. 2651/Mum/2023
ITA No. 2650/Mum/2023
ITA No. 2646/Mum/2023
C.O. No. 119/Mum/2023

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI, S RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No. 2635/Mum/2023 (A.Y. 2012-13) ITA No. 2650/Mum/2023 (A.Y. 2014-15) ACIT-1(1)(1) 579, Aaykar Bhavan, M. K. Road, Mumbai-400020 Vs. M/s. Aadhaar Wholesale Trading and Distribution Ltd.

Knowledge House, Shyam Nagar, JV Link Road, Jogeshwari-East, S.O., Mumbai-400060 PAN/GIR No: AAFCA8793G Appellant Respondent C.O. No. 119/Mum/2023 (Arising out of ITA No. 2653/Mum/2023) (A.Y. 2011-12) M/s. Aadhar Wholesale Trading and Distribution Ltd.

Knowledge House, Shyam Nagar, JV Link Road, Jogeshwari-East, S.O., Mumbai-400060 Vs. ACIT-1(1)(1) 579, Aaykar Bhavan, M. K. Road, Mumbai-400020 PAN/GIR No: AAFCA8793G Appellant Respondent ITA No. 2653, 2635, 2651, 2650, 2646 & CO. 119/Mum/2023 AY 2011-12, 2012-13, 2013-14, 2014-15, 2017-18 & 2011-12 Aadhaar Wholesale Trading And Distribution Ltd.

Appellant by : Shri. Madhur Agrawal Respondent by : Shri. Ajay Chandra & Shri. Manoj Kumar Sinha Date of Hearing 27.03.2024 Date of Pronouncement 05.04.2024 आ

The order continues below.

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