FINERGY TRANSPORT FINANCE LTD.,NAMAKKAL vs. ACIT, CIRCLE-1,, NAMAKKAL

Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of the order of learned Addl. /Joint Commissioner of Income Tax (Appeals), Thane [CIT(A)] dated 03-04-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 18-12-2018. In the assessment order, Ld. AO made addition of Rs.20 Lacs u/s 68 which represent share capital introduced by one shareholder by the name Shri C. Thangaraju who did not file Income Tax Return and accordingly, Ld. AO held that he lacked creditworthiness. The Ld. CIT(A) confirmed the same for want of documentary evidences. Aggrieved, the assessee is in further appeal before us. The Ld. AR has pleaded for another opportunity to the assessee to substantiate its case which has been opposed by Ld. Sr. DR.

Accepting the plea of Ld. AR, we restore the impugned issue back to the file of Ld. AO for de novo adjudication with a direction to the assessee to substantiate the introduction of share capital to the extent of Rs.20 Lacs. No other ground has been urged in the appeal.