Investment Made From Share Premium Without Any Noticeable Business Activity, Legitimacy Of Income Not Established: Calcutta High Court
7 months, 1 week ago

Investment Made From Share Premium Without Any Noticeable Business Activity, Legitimacy Of Income Not Established: Calcutta High Court

Live Law  

The Calcutta High Court has held that the source of investments by those two companies is also the share capital and share premium raised by them while issuing their own shares to other closely held companies, and those companies had no noticeable business activities.The bench of Chief Justice T.S. The Calcutta High Court has held that the source of investments by those two companies is also the share capital and share premium raised by them while issuing their own shares to other closely held companies, and those companies had no noticeable business activities. The assessing officer noted that the business of the assessee is only an investment, and during the previous year, the assessee had received a huge share of application money along with the premium. The court examined the financials of the two share subscribing companies and found that the source of investments by those two companies are also from the share capital and share premium raised by them while issuing their own shares to other closely held companies and those companies had no noticeable business activities.

Court Investment Companies Income Company Premium Share Officer Itat Assessee Calcutta High Court Cit Assessing Section 68 Those Companies Section 131 Those Two Companies Share Premium  officer  premium  share  assessee  legitimacy  established  order  investment  company  noticeable  noted  calcutta  court  companies  high  shares  assessing  income

History of this topic

Scrutiny Notice Was Issued In Amalgamating Company's Name Despite Dept Knowing Of Amalgamation: Calcutta HC Declines To Apply S.292B Of Income Tax Act
1 month, 1 week ago

Scrutiny Notice Was Issued In Amalgamating Company's Name Despite Dept Knowing Of Amalgamation: Calcutta HC Declines To Apply S.292B Of Income Tax Act

Live Law  

The Calcutta High Court has refused to apply Section 292B of the Income Tax Act, 1961 to a scrutiny notice issued in an amalgamating company's name, despite the Assessing Officer being aware about the company's amalgamation. Sivagnanam and Justice Hiranmay Bhattacharyya noted that “the fact of amalgamation was well within the knowledge of the assessing officer.” It thus dismissed the …

Factual Examination Of Dispute Regarding 'Addition' Of Unexplained Cash Credit U/S 68 Of IT Act Is Beyond Scope Of Appeal U/S 260A: Calcutta HC
1 month, 1 week ago

Factual Examination Of Dispute Regarding 'Addition' Of Unexplained Cash Credit U/S 68 Of IT Act Is Beyond Scope Of Appeal U/S 260A: Calcutta HC

Live Law  

The Calcutta High Court has held that it cannot indulge in factual examination of the material produced or not produced by an assessee-company to explain the share capital and premium received by it, in an appeal filed under Section 260A of the Income Tax Act. Sivagnanam and Justice Hiranmay Bhattacharyya thus refused to interfere with an ITAT order which deleted …

AO Can't Draw An Adverse Inference For Mere Non-Response From Directors To Notices: Calcutta High Court
7 months, 1 week ago

AO Can't Draw An Adverse Inference For Mere Non-Response From Directors To Notices: Calcutta High Court

Live Law  

The Calcutta High Court, while deciding whether the addition made under Section 68 of the Income Tax Act, 1961, was justified or not, held that only because the directors failed to respond to the notices issued, the Assessing Officer could draw an adverse inference.The bench of Chief Justice T.S. The Calcutta High Court, while deciding whether the addition made under …

Assessee Has Not Benefited From Round-Tripping Of Share Transactions; Mumbai ITAT Deletes Addition U/s 68
7 months, 3 weeks ago

Assessee Has Not Benefited From Round-Tripping Of Share Transactions; Mumbai ITAT Deletes Addition U/s 68

Live Law  

On finding that the assessee has issued share application money and subsequently allotted shares which shows that the transactions are genuine and there is no material brought on record by tax authorities that the assessee has benefited from round-tripping, the Mumbai ITAT deleted the addition made u/s 68 of the Income Tax Act, 1961. The Bench of the ITAT comprising …

Assessee's Failure To Establish Genuineness Of Transaction With Cogent And Credible Evidence, Calcutta High Court Upholds Addition
7 months, 4 weeks ago

Assessee's Failure To Establish Genuineness Of Transaction With Cogent And Credible Evidence, Calcutta High Court Upholds Addition

Live Law  

The Calcutta High Court has held that merely proving the identity of the investors does not discharge the onus on the assessee if the capacity or credit worthiness has not been established.The bench of Chief Justice T.S. The Calcutta High Court has held that merely proving the identity of the investors does not discharge the onus on the assessee if …

AO Must Make Independent Enquiry To Verify Veracity Of Identity, Genuineness & Credit-Worthiness Of Lenders Before Making Addition U/s 68: Kolkata ITAT
9 months, 1 week ago

AO Must Make Independent Enquiry To Verify Veracity Of Identity, Genuineness & Credit-Worthiness Of Lenders Before Making Addition U/s 68: Kolkata ITAT

Live Law  

Finding that the AO without examining any of the documents, simply made the addition u/s 68 on account of failure of assessee to produce share subscribers, the Kolkata ITAT held that AO cannot take adverse inference without pointing out discrepancies or insufficiency in the evidences and without examining statement of the directors of the subscriber companies. As per the brief …

Careless Attitude Of AO: Kolkata ITAT Deletes Addition Made Without Examining Nature Of Expenditure
10 months, 2 weeks ago

Careless Attitude Of AO: Kolkata ITAT Deletes Addition Made Without Examining Nature Of Expenditure

Live Law  

On finding that expenses were incurred for the business purposes during the course of business, for which assessee has submitted all basic details which was not cross verified by the AO, the Kolkata ITAT deleted the addition made by AO. The Member of the ITAT comprising Rajpal Yadav and Girish Agrawal observed that “the inquiry at the end of the …

Investment In Shares In Indian Subsidiary 'Capital Account Transaction', Not Income: Delhi High Court
11 months, 2 weeks ago

Investment In Shares In Indian Subsidiary 'Capital Account Transaction', Not Income: Delhi High Court

Live Law  

The Delhi High Court has held that investment in shares by a company in its Indian subsidiary is a “capital account transaction” which does not give rise to any income. Placing reliance on the earlier decision of Delhi High Court in Nestle SA v. Assistant Commissioner of Income Tax, the bench comprising of Acting Chief Justice Manmohan and Justice Mini …

Investments Made Through Banking Channels Can't Be Disbelieved, Onus On Revenue To Prove Otherwise: Allahabad HC
1 year ago

Investments Made Through Banking Channels Can't Be Disbelieved, Onus On Revenue To Prove Otherwise: Allahabad HC

Live Law  

Recently, the Allahabad High Court held that investments made through banking channels and show in regular returns cannot be disbelieved unless proven otherwise by the department. The bench comprising of Justice Saumitra Dayal Singh and Justice Shiv Shanker Prasad held there was “no room” to disbelieve investments made in the assesee company if they have been made through banking channels …

Companies Act, 2013 | Civil Court Has Jurisdiction To Determine Title Of Shares Issued 'Fraudulently': Calcutta High Court
2 years ago

Companies Act, 2013 | Civil Court Has Jurisdiction To Determine Title Of Shares Issued 'Fraudulently': Calcutta High Court

Live Law  

The Calcutta High Court has clarified that under the Companies Act, 2013, Civil Courts have jurisdiction to enquire into allegations of fraud pertaining to the title of issued shares. The Court clarified that the NCLT is not competent to enquire into such allegations of fraud made in respect of refusal to transfer and/or record the names of shareholders in the …

Recovery Of Annual Report And Share Certificate From the Assessee's Premises Are Not Incriminating Documents: Delhi High Court
2 years, 2 months ago

Recovery Of Annual Report And Share Certificate From the Assessee's Premises Are Not Incriminating Documents: Delhi High Court

Live Law  

The Delhi High Court has held that the recovery of the annual report and the share certificate of the assessee premises cannot be considered to be incriminating documents.The division bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora has observed that the genuineness of the share capital has been accepted both by CIT and ITAT and that there is …

ITAT Deletes Additions As Assessee Proved Genuineness Of Purchases By Documentary Evidence
2 years, 6 months ago

ITAT Deletes Additions As Assessee Proved Genuineness Of Purchases By Documentary Evidence

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has deleted the additions on the grounds that the assessee proved the genuineness of the purchases through documentary evidence. On the basis of a statement by Ram Prakash Bhatia, the genuineness of purchases made by assessees from M/s. The assessee filed an appeal with the Tribunal after being dissatisfied with the …

Onus To Prove Identity, Creditworthiness And Genuineness Of Transaction Lies On Assessee: Pune ITAT
2 years, 6 months ago

Onus To Prove Identity, Creditworthiness And Genuineness Of Transaction Lies On Assessee: Pune ITAT

Live Law  

The Pune Bench of the Income Tax Appellate Tribunal, consisting of Partha Artha Sarathi Chaudhury and Inturi Rama Rao, has ruled that the onus to prove identity, creditworthiness, and genuineness of a transaction lies with the assessee. In the course of assessment proceedings, the assessee furnished affidavits of the shareholders supporting the share capital and copies of bank accounts of …

Non Issuance Of Duplicate Share Certificates Does Not Indicate Malice Of Company At The Inception Of Transaction: Calcutta High Court Quashes Cheating Case
3 years, 8 months ago

Non Issuance Of Duplicate Share Certificates Does Not Indicate Malice Of Company At The Inception Of Transaction: Calcutta High Court Quashes Cheating Case

Live Law  

The Calcutta High Court has quashed a criminal case of Cheating instituted against a company and its Directors over non-issuance of duplicate share certificates to the complainant, claiming to be a shareholder in the company. The grievance of the Opposite party was that though it held 27,000 equity shares of the Petitioner-company, the latter refused to issue duplicate share certificates …

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