VIRAT TRADECOM P. LIMITED,SECUNDERBAD vs. ITO, WARD 5(4),, KOLKATA

आयकर अपीलीय अधिकरण, कोलकाता पीठ “डी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH: KOLKATA श्री राजेशकुमार, लेखा सटस्य एवं श्री प्रदीप कुमार चौबे, न्याययक सदस्यके समक्ष [Before Shri Rajesh Kumar, Accountant Member&Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 3152/Kol/2025 Assessment Year: 2012-13 Virat Tradecom Pvt. Ltd. Vs. ITO, Ward-5(4), Kolkata

(PAN: AACCV 8690 C) ) अपीलार्थी ( Respondent / प्रत्यर्थी Appellant / Date of Hearing / सुनवाई 15.06.2026 की यिथर्थ Date of Pronouncement/ 29.06.2026 आदेश उद्घोषणा की यिथर्थ For the Appellant/ Shri Somnath Ghosh, Advocate यनर्ााररिी की ओर से For the Respondent/ Shri Dheeraj, JCIT, Sr. DR राजस्व की ओर से

ORDER / आदेश Per Rajesh Kumar, AM:

This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)”] dated10.10.2025 for the AY 2012-13. 2. At the time of hearing the Ld. Counsel of the assessee pressed the ground nos. 2,3 and 4 challenging the order of Ld. CIT(A) confirming the addition of Rs. 1,43,35,000/-.

2 I.T.A. No.3152/Kol/2025 Assessment Years: 2012-13 Virat Tradecom Pvt. Ltd.. 3. Facts in brief are that the assessee filed return of income on 30.11.2012 declaring total income of Rs. 95,350/- which was processed u/s 143(1) of the Act. The case of the assessee was selected for limited scrutiny under CASS and notices were issued u/s 143(2) and 142(1) along with questionnaire and duly served upon the assessee. The assessee was asked to furnish various the documents/details as called for by the AO which were furnished and test-checked by the AO and are available on record. The AO on perusal of the balance sheet of the assessee observed that the assessee has issued 14,335 equity shares at face value of Rs. 10/- each at premium of Rs. 990/- thereby receiving an amount of Rs. 1,43,35,000/-. In order to verify the transactions, the AO issued summons u/s 131 to the directors of the share holding companies asking to produce certain evidences, details in support of justification for investments in the assessee company. But none appeared. Thereafter, the AO issued show cause notice to the assessee for which, the assessee could not give any explanation. Finally the AO added the amount as unexplained cash credit to the income of the assessee u/s 68 of the Act.

3 I.T.A. No.3152/Kol/2025 Assessment Years: 2012-13 Virat Tradecom Pvt. Ltd.. CIT(A) though discussed the financials of the share subscribers to uphold the finding of the AO on the ground that subscribing companies having meager income and no substantial activities and therefore there is no justification to issue shares at high premium. We note that the assessment has been framed in the case of three entities namely Amtek Financial Consultants Pvt. Ltd., Jagmangal Vanijya Pvt. Ltd. and Zircon Infracon Pvt. Ltd. u/s 143(3) of the Act and copies of the orders are available at page no. 35,55 and 82. We note that the money invested in the assessee company by way of share subscribers was already added in their respective assessment order. In the case of fourth investors i.e. S. K. Enterprises, we note that assessment has been framed u/s 143(3) of the Act but no addition was made. Copy of order is available at page 102 of PB. Therefore, in our opinion, the addition made by the AO and confirmed by the Ld. CIT(A) is wrong and cannot be sustained. The case of the assessee is squarely covered by the decision of Hon’ble Calcutta High Court in the case of PCIT vs. One point Commercial Pvt. Ltd. in [2025] 176 taxmann.com 136 (Cal) wherein the Hon’ble Calcutta High Court has held as under:

“5. After noting the principles which was laid down by the Hon’ble Supreme Court in the aforementioned two decisions, the learned Tribunal examined the facts and the details which were furnished by the assessee in respect of the each of the five share applicants companies. The details and documents which were furnished have been noted in paragraph 11 of the impugned order. After considering the documents and details the learned Tribunal has recorded a factual finding that the identity of the share applicant companies cannot be disputed. The next aspect which was examined was the creditworthiness of the share applicant companies for which the learned Tribunal perused the financial statement of all the five companies and found that all the five companies had sufficient funds and the amount which was invested in the purchase of shares was negligible compared to their creditworthiness. Therefore, the Tribunal was satisfied about creditworthiness of all the share applicant companies. While doing so, the Tribunal also found that the identity of the share applicant companies and the genuineness of the transaction also cannot be disputed. Furthermore, in respect of the assessment made on the five share applicant companies were of scrutiny assessment under section 143(3) of the Act and those remained intact. Furthermore, source of share application money which has been received by the assessee has already been taxed in the hands of the share applicants and, therefore, it was held taxing the same amount in the hands of the assessee would tantamount to double addition. In this regard reference was made to the decision of the Hon'ble Supreme Court in Mahaveer Kumar Jain v. CIT [2018] 92 taxmann.com 340/255 Taxman 161/404 ITR 738 (SC)/AIR OnLine 2018 SC 1461. That apart, the learned Tribunal also took note of the decision of this court in the case of Pr. CIT v. Sreeleathers [2022] 143 taxmann.com 435/448 ITR 332 (Calcutta). 6. Thus, we find upon thorough examination of the factual position, the appeal filed by the assessee was rightly allowed by the learned Tribunal. We find no question of law much less substantial question of law arises for consideration involved in this appeal. For the above reason, the appeal fails and the same is dismissed.

4 I.T.A. No.3152/Kol/2025 Assessment Years: 2012-13 Virat Tradecom Pvt. Ltd.. 7. Consequently, the application, GA/1/2025 stands dismissed.” 6. Therefore, considering the facts of the assessee’s case in the light of the decision of the jurisdictional High Court, we are inclined to set aside the appellate order and direct the AO to deplete the addition. Consequently, the ground no. 2, 3 and 4 are allowed.

Order is pronounced in the open court on 29th June, 2026

Sd/- Sd/- (Pradip Kumar Choubey /प्रदीप कुमार चौबे) (Rajesh Kumar/राजेश कुमार) Judicial Member/न्याययक सदस्य Accountant Member/लेखा सदस्य Dated: 29th June, 2026 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Virat Tradecom Pvt. Ltd., C/o, S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No. 203, Off Hare Street, Kolkata- 700001. 2. Respondent – ITO, Ward-5(4), Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata