No Addition Is Permitted U/s 68 On Account Of Share Premium Once Taxpayer Has Proved Identity & Creditworthiness Of Share Subscribers: Kolkata ITAT

The Kolkata ITAT overturned the addition made under Section 68 of the Income Tax Act, emphasizing that the burden shifts to the assessing officer (AO) once the assessee proves the identity and creditworthiness of share subscribers. \r

Critically, the tribunal noted the AO's failure to examine the evidence provided by the assessee, merely citing the non-appearance of subscriber company directors as grounds for the addition. Citing legal precedents, including the Supreme Court's stance on the burden of proof, the ITAT underscored the AO's duty to conduct thorough inquiries and justify any dissatisfaction with the evidence presented. \r

Noting the CIT(A)'s failure to engage with the case's material facts, the ITAT deemed the order mechanical and allowed the appeal. Giridhar Dhelia represented the appellant, while Abhijit Kundu represented the respondent.