INCOME TAX OFFICER, WARD - 1(1), KOLKATA vs. GANDHESHWARI TRADERS PRIVATE LIMITED, KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER I.T.A. No.1149/KOL/2026 Assessment Year:(2014-15) ITO, Gandheshwari Traders Pvt. Ltd., Ward -1(1), Vs. 77, Hazra Road, Kolkata – Kolkata 700069, West Bengal [PAN: AACCG6209Q] (Appellant) .. (Respondent) Appellant by : Shri Dipu Koley, Sr. DR Respondent by: Shri Manoj Kataruka, Advocate Date of Hearing 06.07.2026 Date of Pronouncement 16.07.2026 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER:

This appeal is preferred by the revenue against the order of the Learned Addl./Joint Commissioner of Income Tax (Appeals)-1, Chennai (hereinafter referred to as the “Ld.JCIT(A)”], dated 13.02.2026 for the Assessment Year (AY) 2014-15.

ITA No.1149/Kol/2026/A.Y. 2014-15 ITO vs. Gandheshwari Traders Pvt. Ltd. selected for scrutiny under CASS and statutory notices u/s 142(1) of the Income-tax Act, 1961 (In short, ‘the Act’) along with questionnaire were issued and served upon the assessee. The assessee complied with the said notices by furnishing all details as called for along with books of account, bank accounts and bills and vouchers. Thereafter, the AO noted from the balance sheet that the assessee-company has invested a sum of Rs.6,23,45,000/- in unlisted equities. The AO noted that Rs.4,48,30,000/- was invested in A.Y. 2013-14, accordingly, the AO assumed that the assessee has invested amount of Rs.1,75,15,000/- as fresh investment in unlisted equities. The AO rejected the contention of the assessee explaining the source of investment and treated the same as unexplained cash credit and added to the income of the assessee in the assessment framed u/s 143(3) of the Act, dated 28.12.2016.

“4. DECISION The appellant was engaged in business of investments. The appellant had fled its return of income for the assessment year 2014-15 on 30.09.2014 declaring total income of Rs. 15,290/-, The issues on this appeal pertain to (i) Addition of Rs. 1,75,15,000/- as bogus investment and (ii) disallowance of Rs. 2.32.934/-uls 14A read with section 8D of the Income Tax Act, 1961. Ground no. 1 I have carefully considered the assessment order, the written submissions of the appellant, and the documentary evidences submitted during the assessment. The addition of 1,75,15,000/- has been made by the Assessing Officer merely on the basis of increase in investments reflected in the balance sheet as on 31.03.2014 as compared to 31.03.2013 and byinvoking Section 68 of the Act. It is a fact that out of the total increase, a sum of 92,50,000/- had already been paid in the earlier assessment year and was duly reflected as "Share

ITA No.1149/Kol/2026/A.Y. 2014-15 ITO vs. Gandheshwari Traders Pvt. Ltd. Application Money Pending Allotment" as on 31.03.2013. Upon allotment of shares during the year, the same was transferred to the investment account. Thus, to that extent, there was no fresh payment during the year. The balance amount of 82,65,000/- was paid through disclosed bank accounts and the source thereof has been explained as refund of advances and share application money. All payments were made through account payee cheques and duly recorded in the books of account. The appellant has furnished allotment letters, bank statements, details of share application money, and master data of the investing companies, which are active companies. The addition has been made merely on suspicion and general observation regarding creditworthiness, without identifying any specific unexplained credit entry in the books. The appellant in his submission provided the source of funds for the investments made in the company which duly reflected in the books of accounts. In view of the above facts, I find that the addition of 1,75,15,000/- made under Section 68 is unsustainable in law and on facts. The same is hereby directed to be deleted. The appeal in this ground is allowed.” 5. After hearing the rival submissions and perusing the materials available on record, we find that undisputedly the assessee has made investment in private equities during the year. The AO computed the increase in investment as reflected in the balance sheet as on 31.03.2013 vis-à-vis 30.03.2014 at Rs.1,75,15,000/-. We note that out of Rs.1,75,15,000/-, a sum of Rs.92,50,000/- was paid in earlier assessment year which was duly reflected in the share application money pending allotment on 30.03.2013 and is only upon allotment of shares, the amount was transferred to investment account. The ld. CIT(A) also examined the documents and after recording the findings of the facts to this effect deleted the addition. We note that the balance of Rs.82,65,000/- was paid through banking channels and sources thereof have been explained from out of refund of advances and refund of the share application money. We note that the same were recorded in the books of assessee and furnished before the AO as well as the ld. CIT(A). We note that the assessee furnished the details of the share application money paid, shares allotted, details of investment as on 31.03.2013 and 31.03.2014, copies of the 3

ITA No.1149/Kol/2026/A.Y. 2014-15 ITO vs. Gandheshwari Traders Pvt. Ltd. allotment letters issued by the seven companies, copies of the bank statements of HDFC and Punjab & Sing Bank and companies master data of all seven companies , companies addresses and status as active. Therefore, we are of the view that the conclusion drawn by the AO is based upon the conjecture and surmises and not facts on record. The ld. CIT(A) fully appreciated the facts on record and passed a very reason and detailed order while deleting the addition. Therefore, we are inclined to uphold the order of ld. CIT(A) on this issue by dismissing the appeal filed by the revenue.

The order is pronounced in the open Court on 16/07/2026.

Sd/- Sd/- (Pradip Kumar Choubey) (Rajesh Kumar) JUDICIAL MEMBER ACCOUTANT MEMBER Kolkata, Dated: 16/07/2026 SAMANTA आदेश�ȧĤǓ�ͧ �ͪ �\ Ē ȯͪ��/Copy of the Order forwarded to: 1. \ �Ȣ�ȡ�ȸ/ The Appellant 2. Ĥ×��ȸ/ The Respondent. 3. Ȳ�Ȳͬ��आयकर] �ǕÈ�/ Concerned CIT 4. आयकर] �ǕÈ�(अपील) / The CIT(A) ��ȡ�Ȣ�ĤǓ�Ǔ�ͬ �, आयकर\ �Ȣ�ȣ�\ͬ ����,/ DR, ITAT, Kolkata 5. 6. �ȡ�[फाईल/ Guard file.

BY ORDER, // TRUE COPY // Asstt.Registrar, ITAT, Kolkata