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Facts
The assessee's appeal for AY 2016-17 arose from an order confirming an addition of Rs. 20 Lacs under section 68, representing share capital introduced by a shareholder who had not filed an Income Tax Return. The Assessing Officer and CIT(A) held the creditworthiness of the share capital as unproven due to lack of documentary evidence.
Held
The Tribunal accepted the assessee's plea for another opportunity to substantiate its case. The issue of the impugned addition was restored to the Assessing Officer for de novo adjudication.
Key Issues
Whether the creditworthiness of the share capital introduced could be substantiated by the assessee.
Sections Cited
143(3), 68
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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM
(िनधा9रणवष9 / Assessment Year: 2016-17) M/s Finergy Transport Finance Ltd. ACIT (Formerly known as M/s.Trancity Finance Ltd.) Circle-1 बनाम/ 88, Mullai Mahal, Namakkal. Vs. Narashima Sannathi Street, Namakkal-637 001. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AACCT-5557-A (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri N.Arjun Raj (CA)- Ld. AR � थ�कीओरसे/Respondent by : Ms. Kavitha (Addl.CIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 28-08-2024 घोषणा की तारीख /Date of Pronouncement : 03-09-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
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.