Where the assessee company has established identity genuineness, AO cannot make addition to the income of the assessee


Quick Summary
The Income Tax Appellate Tribunal ruled that if an assessee company can establish the identity and genuineness of its transactions, the Assessing Officer (AO) cannot arbitrarily add to the company's declared income. This decision came after the AO sought further details regarding share application money received by the company, which the assessee provided. However, the Tribunal's stance implies that sufficient proof of the subscribers' legitimacy should prevent further additions.

Court :
ITAT Chandigarh

Brief :
The captioned appeal has been preferred by the assessee against the order dated 17.06.2016 passed by the Learned Commissioner of Income Tax (Appeals)-2 [for short the CIT(A)], Ludhiana u/s 250(6) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the assessment year 2012-13, whereby the Ld. CIT(A) has dismissed the appeal filed by the assessee against the assessment order passed under section 143(3) of the Act.

Citation :
ITA No.917/Chd/2016

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

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3 Years PLAN
4999
(Excl. of GST ₹899)

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