AMRIT CEMENT LIMITED,,OPPOSITE HORSE SHOE BUILDING vs. DCIT, CENTRAL CIR 4(1), KOLKATA, AAYAKAR BHAWAN POORVA,
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the CIT(A) erred in confirming the addition under Section 68 of the Income Tax Act, 1961, without properly considering the findings of the remand reports. The Tribunal noted that the AO, in the first remand report, stated that summons under Section 131 were complied with by the directors of the subscriber companies, and their statements were recorded. The directors explained the source of funds for the share application money. The second remand report also indicated that the enquiry letters under Section 133(6) were fully replied to with all necessary evidences. The Tribunal observed that the CIT(A) reproduced the remand reports in his order but did not give any cognizance to them, relying instead on generalized allegations and the assessment order. The Tribunal found that the CIT(A)'s reliance on the non-appearance of directors was contradicted by the findings in the remand reports. Therefore, the Tribunal set aside the order of the CIT(A) and directed the AO to re-examine the issue in light of the remand reports and the evidence on record, including the statements of the directors and the replies to Section 133(6) notices. The addition was deleted, and the appeal was allowed for statistical purposes.
What were the facts?
The assessee, Amrit Cement Limited, is in appeal before the Income Tax Appellate Tribunal (ITAT) against the orders of the Commissioner of Income-tax (Appeals) [CIT(A)] for assessment years (AYs) 2011-12 to 2018-19. The primary dispute concerns an addition of ₹69,76,50,000/- made by the Assessing Officer (AO) and confirmed by the CIT(A) under Section 68 of the Income Tax Act, 1961, treating share capital/premium received as unexplained cash credit. A search and seizure operation was conducted on the assessee on August 30, 2012. Subsequently, notices under Section 153A were issued. The AO added the sum received from eleven corporate entities as share capital/premium, citing non-appearance of directors of the investing companies in response to summons under Section 131, despite replies to notices under Section 133(6) being furnished. The CIT(A) confirmed the addition, relying on the principle of preponderance of probabilities and the fact that the share subscribers shared the same registered office address as the assessee.
What were the issues?
1. Whether the addition of ₹69,76,50,000/- as unexplained cash credit under Section 68 of the Income Tax Act, 1961, is justified, considering the evidence and submissions made by the assessee? Assessee's Contention: The assessee argued that the CIT(A) failed to consider the findings in the two remand reports submitted by the AO. These reports indicated that the sources of the subscribers were explained, inquiry letters under Section 133(6) were fully responded to with evidence, and summons under Section 131 were complied with by the directors of the subscriber companies, who also appeared and provided statements. The assessee contended that the CIT(A) ignored these reports and relied solely on the assessment order. Revenue's Contention: The revenue, through the AO and subsequently the CIT(A), argued that the assessee failed to establish the creditworthiness of the share subscriber companies. The non-appearance of directors in response to summons under Section 131 was a key factor, leading the AO to conclude that the existence, genuineness, and creditworthiness of the transactions could not be ascertained. The CIT(A) also noted that the share subscribers shared the same registered office address as the assessee and that key persons of the assessee were controlling persons of these entities, raising concerns about their independence and financial credibility.
Which sections of the Income-tax Act were involved?
Section 68,Section 133(6),Section 131,Section 153A,Section 143(3),Section 271AAB,Section 139(1),Section 132(1),Section 250(4)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM
Per Rajesh Kumar, AM:
These are appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals)-27, (hereinafter referred to as the “Ld. CIT(A)”] dated 28.02.2026, 11.03.2026, 07.03.2026, 09.04.2026, 24.03.2026, 12.03.2026, 03.06.2026 for the AYs 2011-12, 2012-13, 2013- 14, 2016-17, 2017-18, 2015-16, 2018-19.
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 A.Y. 2012-13 IT (SS)A No. 55/KOL/2026 Ground No 1 : 2. The only issue raised by the assessee in the various grounds of appeal is against the confirmation of addition of ₹69,76,50,000/- by ld. CIT(A) as made by the AO in respect of share capital/share premium by treating the same as unexplained cash credit u/s 68 of the Income Tax Act, 1961(hereinafter referred to as” the Act”).
The facts in brief are that the assessee filed its return of income u/s 139(1) for the assessment year 2012-13 on 29.09.2012 declaring total income of Rs.Nil. A search & seizure operation was conducted u/s 132(1) of the I.T.Act, 1961 on 30.08.2012 and subsequent dates in the business premises of the assessee at Trinity Tower, 6h Floor, 226/1, A.J.C. Bose Road, Kolkata-20 &Umlaper Elaka, Rymbai, Jaintia Hills, Meghalaya. Accordingly, notice u/s 153A of the Income- tax Act, 1961 was issued on 19.06.2013 for the A.Y. 2012-13. The assessee filed its return of income in response to the said notice declaring total income as ₹ Nil. The statutory notices u/s 143(2) and 142(1) alongwith questionnaire were issued and duly served upon the assessee. The assessee replied the said questionnaire with all details and evidences as called for. On perusal of documents it was found by the AO that assesse company has raised share capital at a face value of Rs.10/- with a premium of Rs.490/- from the different parties during the Assessment Year 2012-13 aggregating to Rs.69,76,50,000/-During assessment proceeding ,the notices Page 2 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 u/s 133(6) of the Act were issued to the concerned parties/investors to verify the genuineness of transactions. The replies were received from all the shareholders submitting all the details and evidences qua the investments made in the equity shares of the assessee company. Subsequently, summons u/s 131 of the I.T. Act were issued to the directors of the investing companies. However, directorsof the subscriber companies did not appear in response to the summons.The Ld. AO has finally added a sum of Rs. 69,76,50,000/- to the income of the assessee being share share capital/share premium received from 11 share subscribers which were all group companies by treating the same as unexplained cash credit u/s 68 of the Act in the assessment framed u/s 153A/143(3) dated 25.03.2015 thereby assessing the income at Rs.69,84,58,170/-.
The ld. CIT(A) dismissed the appeal of the assessee in the appellate proceedings. The ld. CIT(A) after taking account the contentions and submissions alongwith evidences furnished by the assessee and after calling for remand reports two times andakso the after taking into account the replies of the assessee in response thereto dismissed the appeal of the assessee despite the fact that the AO clearly mentioned in the remand reports that enquiry letters were fully replied by the subscribing companies by furnishing all the evidences and details qua the share investments in the assessee company. The AO in the remand reports also stated that summons issued u/s 131 of the Act were fully complied with by the
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 directors of the subscriber companies and their statements were also recorded u/s 131 of the Act. Even the AO has not made any adverse remarks on any of the documents received in response to notices u/s 133(6) of the Act from the share applicants or in the statements recorded u/s 131 of the Act.During the appeal proceedings the CIT(A)-20,Kolkata(the then having jurisdiction) called for remand report vide letter dated 26.08.2015 and 16.11.2015 from ACIT, Central Circle- 2(1), Kolkata as evident from remand report dated 30.11.2015( hereinafter referred to as “1st remand report) which was submitted before Ld. CIT(A)-20 by the ACIT, Central Circle-2(1),Kolkata and is placed at Page No 933 to 951 of Common Paper Book (CP)-1.5. 5. Thereafter again search action was carried out against assessee on 05.10.2021 and assessee’s assessment jurisdiction was centralised with DCIT, Central Circle- 4(1),Kolkata.As such the appeal was transferred from Ld. CIT(A)-20, Kolkata to Ld. CIT(A)-27 Kolkata.The Ld. CIT(A) - 27, Kolkata again called for remand report vide its letters dated 28.08.2025 and 21.10.2025 from the DCIT, CC-4(1), Kolkata having present jurisdiction as evident from remand report dated 31.12.2025(hereinafter referred to as 2nd remand report).The DCIT, Central Circle-4(1), Kolkata submitted 2nd Remand report dated 31.12.2025by JCIT, Central Range-4 vide its forwarding letter dated 02.02.2026 forwarded the same to Ld. CIT(A)-27, Kolkata and same is placed at Page No 1 to 37 of CP-1. The 2nd remand report
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 was received by Ld. CIT(A)-27, Kolkata office on 06.01.2026 as evident from Page No 1 of CP-1. 6. The Ld. CIT(A) vide para 9.1.1 in Page 161 & 162 of order has given a generalised short note of the submission filed by the assessee.In Para 9.1.3 in Page No 205 & 206 of order, the Ld. CIT(A) confirmed that the replies were received in response to notices u/s 133(6) of the Act but none of the directors of subscriber companies appeared before the Ld. AO. Thereafter, he madegeneralisedallegations.In Para 9.1.4 in Page no 206 & 207 of order, he stated that u/s 68 of the Act onus is cast uponthe assessee to establish the creditworthiness of share subscriber companies and thereafter he made vague and generalisedallegation.In para 9.1.5 in Page 207 of order, CIT(A) relied on preponderance of probabilities and the principle of human conduct and relied on Hon’ble Supreme Court decision in case of CIT vs. Durga Prasad More (1971) 82 ITR 540 (SC) and Sumati Dayal 801 (SC).Therafter after referring to various decisions , in the appellate order and finally in the concluding Para 9.1.8 & 9.1.9 in page 209 & 210 of order,the ld. CIT(A) observed that share subscribers have the same registered Office address as that of the assessee. Key persons of the appellant company were also the controlling persons of these group entities/subscribers companiestherebynoting serious concerns regarding the independence and financial credibility of the investors. Thereafter making vague allegations, the Ld. CIT(A) confirmed the addition
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 7. The ld. AR vehemently submitted that addition has been confirmed by the ld. CIT(A) by not taking into account the findings of the AO in the two remand reports which clearly stated that sources of the subscribers were explained, enquiry letters u/s 133(6) of the Act were fully responded with evidences and even the summons issued u/s 131 of the Act were complaied with by making personal appearance by the directors of the subscriber companies. The ld. AR submitted that the Ld. CIT(A) has reproduced the 1st remand report dated 30.11.2015(at Page No of 74 to 99 of CIT(A)’s order) and 2nd Remand report dated 31.12.2025(at Page no 106 to 155 of CIT(A)’s order) in his order butsurprisingly the Ld. CIT(A) has not taken any cognizance of both the remand reports as evident from CIT(A)’s order. The Ld. CIT(A)has given his finding only on the assessment order, which is overridden by the 1st& 2nd remand report dated 30.11.2015 and 31.12.2025. The ld. AR submitted that the DCIT, Central Circle-2(1), Kolkata in the 1st remand report dated 30.11.2015(placed at Page No 933 to 951 of CP- 1.5)reconfirmed that in responses to the Notices u/s 133(6) of the Act by mentioning that replies were received from share subscriber companies.The ld. AR submitted that the ldAOalso confirmed that Directors of share applicant companies appeared before him in response to summons u/s 131 served during remand proceedings. The ld. AR submitted that Mr. Pradeep Bagla and Mr. Sunil Kumar Khemka are the directors of 11 share applicant companies. The ld. AR submitted that Mr. Pradeep Bagla’s Statement was recorded u/s 131 of the Page 6 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Act on 24.09.2015 and statement of Mr. Sunil Khemka was recorded u/s 131 of the Act on 29.09.2015. The ld. AR submitted that the AO further clarified that the sources of share application money received by assessee with PANs were submitted and also mentioned reasons for making investment considering the “future prospects of cement industry in North East being very bright”. The Ld. AR argued that no adverse findings were given by the Ld. AO in the remand report dated 30.11.2015. The ld. AR submitted that the 2nd remand report dated 31.12.2025(placed at Page no 1 to 37 of CP-1) was submitted by DCIT, CC-4(1), Kolkata after making the enquiries and replying to observations of the Ld. CIT(A)-27, Kolkata which are attached Annexure- 1 to 7 in the remand report.
The ld. AR further submitted that in the remand report dated 31.12.2025 the Ld. AO again confirmed that replies to notices u/s 133(6) issued during assessment proceedings were duly received. The ld. AR submitted that ld. CIT(A) that it is evident from 1st remand report dated 30.11.2015 that directors of the share applicant companies appeared and their statements were recorded during 1st remand proceedings.Thereafter, Ld. AO stated that the shares were allotted at a premium of Rs. 490/- to the promoter directors Pradeep Bagla and Deepa Bagla along with other share applicants and enclosed return of allotment marked as Annexure-2placed at Page No 39 to 48 of CP-1.Then in Para 7 of remand report dated 31.12.2025 he stated that CIT(A) has
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 referred to the concluding paragraph of the earlier remand report dated 30.11.2015 which was “As directed by the Ld. CIT(A), the remand report is submitted for his kind perusal and he may direct for further enquiries if he deems fit.” .In reference to the same he stated that it was standard and general remarks and in case the Ld. CIT (A) wants any further enquiry, then it may be carried out by the A.O. which is duly mandated in section 250(4) of the Act itself. The ld. AR referred to Para 8 of remand report dated 31.12.2025 and stated that CIT(A) has observed that in remand report dated 30.11.2015, the then AO has not stated anything about the nature & source of fund / business activities/business rationale and capacity of investor companies/2nd source companies. On the same ,the AO stated that on examination of earlier remand report dated 30.11.2015 and documents submitted in the course of second remand proceedings, it is observed that the source of funds in the hands of the share subscriber companies comprises were out of sale proceeds of investments, refund of loans and receipt of share application money etc. The AO then stated that I have tried to make extensive enquiries against the second source companies on test checkbasis though it is not required for the purposes of section 68 of the Act for the A.Y. 2012-13. The ld. AR submitted that the AO during the remand proceedings made inquiries through inspector for physical verification and identity of source of source in 14 cases. All of them were found by the inspector at their respective address and provided various asst order, copy of return of 2nd sources. Page 8 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 The same has been enclosed along with remand report vide Annexure-3, which is placed at Page No 49 to 168 of CP-1, Page No 169 to 346 of CP-1.1 and Page No 347 to 526 of CP- 1.2.The AR submitted that thereafter he explained that all 11 share applicants were assessed to tax regularly and also subjected to CIT(A), tribunal and in some cases appeals are pending before appellate authorities as evident from the Form -35. Copies of the Asstt. Order, Appeal order, Form no. -35 have been enclosed videAnnexure – 4, which is placed at Page No 527 to 795 of CP-1.3.Thereafter the AO has given PAN & Jurisdiction of all share applicants in Para 9 and their networth was given in Para 10 of remand report dated 31.12.2025. The ld. AR submitted that AO also observed that share applicants net worth significantly exceeds the share application money given to assessee in Para 11 of remand report dated 31.12.2025. Thereafter in Para 12 AO stated that as per the directions of the Ld. CIT (A)-27, Kolkata, summons under Section 131 of the Act were issued on 21.08.2025 to the Directors of the said eleven share subscriber companies and in compliance with the said summons, Mr. Pradeep Kumar Bagla and Mr. Sunil Kumar Khemka appeared on behalf of their respective subscriber companies and their statements were recorded on oath on 03.09.2025. AO further stated that directors also explained the reasons for not appearing personally in response to the summons issued to them during assessment proceedings, as per Answer to Question No. 23 of the above statements made on 03.09.2025.Copies of the statements of Mr. Pradeep Kumar Bagla and Mr. Sunil Kumar Page 9 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Khemka recorded on oath on 03.09.2025 were enclosed and marked as Annexure – 5 which is placed at Page No 796 to 919 of CP-1.4.The Ld. AO also confirmed that Mr. Pradeep Bagla, Mrs. Deepa Bagla and Mr. Sunil Kumar Khemka were assessed to tax under his charge and gave the details of share applicants with names of directors in Para 12 of remand report dated 31.12.2025.In Para 13 of the remand report, the AO confirmed that sources of share application money were examined in remand report dated 30.11.2015. Certified copies of the ledger accounts of all the share subscriber companies for the A.Y 2012-13were enclosed and marked asAnnexure 6 which is placed at Page No. 920 to 931 of CP-1.4. Thereafter, the AO has given the book value of share for each financial year since commencement of business till 31.03.2024 vide Annexure-7which is placed at Page No 932 of CP-1.4.In para 18 of remand report dated 31.12.2025 the AO reproduced the reply of the assessee explaining the basis of collection of premiumthat with various subsidies and North East being mineral rich state, the future prospect of cement industry was very bright and as such the assessee company issued shares at a premium of Rs. 490/- per share to all promoters and promoter companies.In para 19 as directed by Ld. CIT(A)-27, Kolkata the date wise fund flow chart of share application made by the share subscriber group companies &source of fund were given by the AO. The ld. AR submitted that no adverse remarks were made by the AO in the remand report dated 31.12.2025.
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 9. As stated above, although Ld. CIT(A) reproduced remand report dated 30.11.2015and remand report dated 31.12.2025 but he has ignored the findings of the AO in appellate order, as is evident from the CIT(A)’s order.As evident from both the remand reports, the Directors of share applicant companies appeared in both the remand proceedings and their statements were recorded on oath.In both the remand report AO has not given any adverse comment about the share application money received by the assessee. Hence, there is no justification for confirmation of the addition by the ld. CIT(A).It is further mentioned that all the shareholders were still holding the shares in the assessee company as evident from Page No 27 to 30 of Master Paper Book. The ld. AR submitted that it is very unfortunate that the Ld. CIT(A) had not taken cognizance to the remand reports although he called for the 2nd remand report himself. The ld. AR contended that as such the remand reports by the AO have to be taken as the conclusion and the addition confirmed by Ld. CIT(A) is wrong and may be deleted. In defense of his arguments , the reliance is placed on decision of Hon’ble Allahabad High Court in case of Commissioner of Income tax (Central) v B B Sharma ITA Appeal No 730,726,727,729,731 of 2012 order dated 06.03.2017.Besides, the ld. counsel also relied on the following decisions:
i. Principal Commissioner of Income-tax 1 Kolkata vs. Shipra Enclave (P.) Ltd. [2026] 183 taxmann.com 413 (Calcutta) order dated 04.02.2026.
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 ii. Principal Commissioner of Income-tax vs. Express Tradelink (P.) Ltd. [2026] 183 taxmann.com 398 (Calcutta) order dated 04.02.2026. iii. Principal Commissioner Of Income Tax-2, Kolkata V Karni Infraprojects Private Limited ITAT/168/2025 & IA No GA/2/2025 order dated 28.01.2026. iv. PCIT vs Outcome Buildcom P. Ltd. (ITAT/3/2024 (Calcutta) dated 03.05.2024. v. PCIT vs Shreen Hire Purchase P Ltd. (ITAT/196/2024 (Calcutta) dated 20.12.2024. vi. Principal Commissioner of Income Tax, Central-1, Kolkata vs Mallcom VSFT Gloves Pvt. Ltd. (Earlier Known as VSFT Quilts and Pillows Pvt Ltd.) (ITAT/264/2024 (Calcutta) dated 09.06.2025. vii. Principal Commissioner Of Income Tax-2, Kolkata VBrightCommodeal Private Limited Itat /162/2025, Ia No: Ga/1/2025, Ga/2/2025 order dated 28.08.2025. viii. Principal Commissioner of Income Tax-1, Kolkata vs True Man Consultants Private Limited (ITAT/203/2024 (Calcutta) dated 25.04.2025. ix. Principal Commissioner of Income-tax-2 vs. Vish Realty Solutions (P.) Ltd. [2025] 176 taxmann.com 500 (Calcutta) order dated 10.07.2025. x. Principal Commissioner of Income-tax vs. Anmol Stainless (P.) Ltd. [2022] 138 taxmann.com 535 (Calcutta) order dated 09.02.2022. xi. Principal Commissioner of Income-tax vs. Snowwhite Infrastructure (P.) Ltd. [2024] 168 taxmann.com 368 (Calcutta) order dated 15.05.2024. 10. The ld. DR ,on the other, hand vehemently supported the order passed by the Assessing Officer and ld. CIT(A).The ld. Page 12 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 DR submitted that the ld. CIT(A) has paased the order after looking into all the aspect of the matter, submissions and arguments of the assessee, the remand reports and reply of the assessee to the remand reports. The ld. DR stated that the two remand reports were discussed threadware in the appellate order. The ld. DR while relying heavily on the appellate order ,prayed that the appellate order may be confirmed by dismissing the appeal of the assessee.
We have heard the rival contentions and perused the materials on records and as placed before us. The undisputed facts are that a search & seizure operation was conducted u/s 132 of the I.T.Act, 1961 on 30.08,2012 and subsequent dates in the business premises of the assesse at Trinity Tower, 6h Floor, 226/1, A.J.C. Bose Road, Kolkata-20 &Umlaper Elaka, Rymbai, Jaintia Hills, Meghalaya. Accordingly, notice u/s 153A of the Income-tax Act, 1961 was issued on 19.06.2013 for the A.Y. 2012-13. The assessee filed its return of income in response to the said notice declaring total income as ₹ Nil. The assessee replied all the notices/questionnaire by furnishing all details and evidences as called for by the AO. It is observed from the documents that assesse company has raised share capital at a face value of Rs.10/- with a premium of Rs.490/- from the 11 parties during the Assessment Year 2012-13 aggregatijng to Rs.69,76,50,000/-During assessment proceeding ,the notices u/s 133(6) of the Act were issued to the 11 parties to verify the genuineness of transactions. We note that the replies were received from all the shareholders
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 submitting all the details and evidences qua the investments made in the equity shares of the assessee company. Subsequently, summons u/s 131 of the Act were issued to the directors of the investing companies. However, directorsdid not appear in response to the summons before the AO.Finally in the assessment order, the Ld. AO added the entire share capital/share premium of Rs. 69,76,50,000/- to the income of the assessee received from 11 share subscribers which are all group companies by treating the same as unexplained cash credit u/s 68 of the Act. Forthe sake of ready reference we extract the details of the subscribers as under:
Sl No Name of Share Applicant Amount (Rs.) 1 Madrid Traders Pvt Ltd 2,78,50,000 2 Naman Health Food Industries Pvt Ltd 18,66,50,000 3 M/s SMR Business Pvt Ltd 51,00,000 4 M/s Chordia Tarde Credits Pvt Ltd 7,60,00,000 5 Ridhi Sidhi Vanijya Pvt Ltd 8,11,00,000 6 M/s Gravity Sales Agency Pvt Ltd 1,13,00,000 7 M/s Lord Dealcom Pvt Ltd 12,29,50,000 8 M/s Bharat Finance & Industries Ltd 8,38,00,000 9 M/s Jai Mata Di Vanijya Pvt Ltd 8,10,00,000 10 M/s Gulmohar Vyapaar Pvt Ltd (Now Known as Vana Nine Pvt. 1,69,00,000 Ltd.) 11 M/s Prabhudhan Finance Pvt Ltd 50,00,000 Total 69,76,50,000
We note that all subscriber companies have replied to notices issued u/s 133(6) of the Act which has been acknowledged by AO in assessment order. However, as the Directors of Share Applicant companies did not appear in response to summons u/s 131 of the Act, therefore the AO stated that he could not verify the identity & creditworthiness of share applicants and genuineness of transaction. Replies to notices u/s 133(6) along with the documents relating to source and second Page 14 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 source were furnished before the Ld. AO and Ld. CIT(A) and are available at Page No 1 to 1923 of Paper Book Volume 1 to 5 for AY 2012-13.
We note that the ld. CIT(A) -20,Kolkata(the then having jurisdiction) called for remand report vide letter dated 26.08.2015 and 16.11.2015 from ACIT, Central Circle-2(1), Kolkata and same was filed on 30.11.2015 (hereinafter referred to as 1st remand report) before Ld. CIT(A)-20 by the ACIT, Central Circle-2(1),Kolkata and is placed at Page No 933 to 951 of Common Paper Book (CP)-1.5. We note that in the said remand report AO confirmed that all the above companies are situated at 226/1, A.J.C. Bose Road, Trinity, 6 Floor, Kolkata-20. It was submitted that the directors of the investor companies are the main promoters of the assessee company. The summons u/s 131 of Income Tax Act, were issued to the directors of the above companies and their statements were recorded u/s 131 of the Act. In the remand report subscriberwise details were discssed as under:
M/s SMR Business Pvt.Ltd During the year under consideration M/s SMR Business Pvt. Ltd applied share application to the tune of Rs.51,00,000/- to M/s Amrit Cement Industries Ltd. The said share application money was paid for 10,200 shares at a face value of Rs.10/- with premium of Rs.490/- per share. The nature of business of the company is said to be financing. The company i.e. SMR Business Pvt. Ltd. filed its return of income for the assessment year 2012-13 on 27.09.2012 declaring total income of Rs.Nil. It is found from the paper book that the copies of P & L a/c, Balance Sheet and audit report, copy of return filing evidence of the company was submitted. It is found from the P& L a/c that the Company suffered a loss of Rs.52,494/- during the year. The company applied for 10,200 shares in Amrit Cement Page 15 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Industries Ltd during the year under consideration and payment details were submitted. The relevant bank statement of the company in respect of the above share application transaction was produced. Mr. Pradeep Bagla, director of the company appeared in response to the summons u/s 131 and his statement was recorded u/s 131 of Income Tax Act, 1961, on 24.09.2015. Mr. Bagla stated that the company i.e. SMR Business Pvt. Ltd. is a group company of M/s Amrit Cement Industries Ltd and the business activity of the company is financing. During the year under consideration the company invested a sum of Rs.51,00,000/ as share application money to the Amrit Cement Industries Ltd. which was allotted. The source of above investment was claimed to be the refund of unsecured loan. The detail of the parties from whom the company claimed to have raised the above funds is given below: Details of Sources of Fund for the FY 2011-12 Date Party Name Amount (Rs.) PAN Nature of Payment 12.03.2012 Shree Shakambhari Vastu 29,00,000.00 AAGCS5008R Refund of Nirman Pvt.Ltd Unsecured Loan 12.03.2012 Shree Shakambhari Vastu 19,00,000.00 AAGCS5008R Refund of NirmanPvt.Ltd Unsecured Loan 12.03.2012 ShreeShakambhariVastu 2,85,379.00 AAGCS5008R Refund of Nirman Pvt. Ltd Unsecured Loan Total 50,85,379.00
It is found from the paper book that the copy of P/L a/c, Balance Sheet, copy of return and relevant copy of Bank statement, of M/s Shree Shakambhari Vastu Nirman Pvt. Ltd were furnished. M/s Shree Shakambhari VastuNirman Pvt. Ltd is also a group company of the assessee & Mr. Bagla is the common director. The reason for investment in Amrit Cement Industries was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date M/s Chordia Trade Credit Pvt Ltd. It is found from the details of submission that during the year under consideration M/s Chordia Trade Credit Pvt. Ltd applied share application to the tune of Rs. 7,60,00,000/- to M/s Amrit Cement Industries Ltd. The said share application money was paid for 1,52,000 shares at a face value of Rs. 10/- with premium of Rs.490/- per share. The nature of business of the company is said to be financing.
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 The company i.e. Chordia Trade Credit Pvt. Ltd. filed its return of income for the assessment year 2012-13 on 30.09.2012 declaring total income of Rs.Nil. The copies P & L a/c , Balance Sheet & audit report and copy of return filing evidence of the company were submitted. It is found from the P& L a/c that the Company suffered a loss of Rs. 10,35,708/- during the year. The company applied for 1,52,000 shares in Amrit Cement Industries Ltd and payment details was submitted. Mr. Pradeep Bagla director of the company appeared and his statement was recorded u/s 131 of Income tax Act, on 24.09.2015. Mr. Bagla stated that the company i.e. Chordia Trade Credit Pvt. Ltd. is a group company of M/s Amrit Cement Industries Ltd and the business activity of the company is financing. The company has invested a sum of Rs.7,60,00,000/- as share application money in Amrit Cement Ltd. which was allotted during the F.Y. 2011-12. Thesource of investment in Amrit Cement Ltd. for the F.Y. 2011-12 was claimed to be fund raised on sale of Shares held as investment & share application money received during the year. The company sold the shares to the different parties as given below:-. Chordia Trade Credits Pvt Ltd details of Sources of fund for the FY 2011-12 Sale of Shares SI Party Name Address Pan No Amount (Rs) No 1 Bhagyalaxmi 12A, Sri Gopal Mullick Lane, AADCB6984C 5,00,000 Agency Pvt Ltd Kolkata, PIN-700012 2 Diagram 3, Saklat Place, Kolkata, PEN- AADCD3726E 5,00,000 Distributors Pvt Ltd 700072 3 Instil Distributors 9, India Exchange Place 3rd AACCI5749M 20,00,000 Pvt Ltd Floor Kolkata 700001 4 Ontrust Dealers Pvt Ltd 12A, Sri Gopal Mullick Lane, AABC04574F 1,30,00,000 Kolkata, PIN-700012 5 Porter Buildcon Pvt Ltd 108, M.J. Shopping Center, 3, AAECP3823H 10,00,000 Veer Savarkar Block, Shakarpur, Delhi, PIN-110092 6 Safari Dealcom Pvt Ltd 11, Prem Chand Boral Street, AAPCS6674L 3,14,00,000 Kolkata, PIN-700012 7 Sixth Sense 7, Bibi Razio Lane, Kolkata, PIN- AAPCS6675M 2,72,00,000 Vintrade Pvt Ltd 700012 8 Sunstar Infrabuild DA/4, 103, Dua Business AALCS1729C 12,00,000 Pvt Ltd Center, Main Vikas Marg, Shakarpur, Delhi, PIN-110092 The source of fund for investment was claimed to be the fund raised as share application money as given below: Share Application Money Address PAN No Amount SI No Company Name (Rs.) SMR Businesses Pvt. 226/1 AJC Bose Road, 6“ Floor, AAECS7654P 2,00,000 1 Ltd. Kolkata - 700 020
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 It appear from the paper book that the copies of Bank Statement of the above companies reflecting such transactions was furnished. It is also found that it is a group company. The source of investment in M/s Amrit Cement Industries Ltd. was claimed to be the fund which was received as sale of shares & share application money as above. "The reason for investment in Amrit Cement Industries was stated that ‘"the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date M/s Gravity Sales Agency Pvt. Ltd. During the year under consideration the assessee, M/s Amrit Cement Industries Ltd,, received share application money to the tune of Rs. 1,13,00,000/- from M/s Gravity Sales Agency Pvt. Ltd. The said share application money was received at a face value of Rs.10/- with premium of Rs.490/- per share. The nature of business of the company is financing. It appears from the paper book that the copies of P & L a/c, Balance Sheet and audit report and copy of return filing evidence of the company was submitted. It is found that the company i.e. Gravity Sales Agency Pvt. Ltd filed its return of income on 20.12.2012 declaring total income of Rs.35,67,360/-. It is found from the P& L a/c that the company has income of Rs.35,70,848/-. The company applied for 22,600 shares in Amrit Cement Industries Ltd. The relevant bank statement was produced in respect of share application money payment. Mr. Sunil Kumar Khemka, Director of the company appeared in response to the summons u/sl31 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act,1961 on 29.09.2015. Mr, Khemka stated that the company is a financing company and the source of income of the company is from investment. Mr. Khemka stated that the company is a group Company with Amrit Cement Ltd. and he is the common Director of both. The Company invested a sum of Rs. 1,13,00,000/- as share application money in Amrit Cement Ltd. The source of above investment was claimed to the fund which was received from the different parties as sale of shares held as Investment. He submitted the details of sale of share and the parties involved in these transactions which is given below:
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Gravity Sales Agency Pvt Ltd Details of Sources of fund for the FY 2011-12 as sale of shares SI Company Name Address PAN No Amount (Rs.) No 1 Adeline Sales Pvt 33 Braboume Road, AAKCA0547R 1600000.00 Ltd Ground Floor, Kolkata 700001 2 BubliBantiTradecom 21, Amartolla Street, AACCB8829M 1300000.00 Pvt Ltd Kolkata 700001 3 Farista Dealers Pvt Ltd 75 Metclaf Street, AABCF6129R 3000000.00 Kolkata 700013 4 Gold Line Dealcom Pvt 30, Bentinck Street, AADCG4509N 1500000.00 Ltd Kolkata, 700001 5 Krypton Trade Link Pvt C/0,-Sikha Sen, 24, Babu Ram Sil AAECK0113C 1400000.00 Ltd Lane, 2nd Floor, Kolkata, PIN- 700012 6 Strong Dealers Pvt 132, Cotton Street, 4th AANCS9028C 2000000.00 Ltd Floor, Room no, 405, Kolkata, PIN-700007 7 Wellknown 119B, Mukta Ram Babu Street, AABCW0422E 1000000.00 Commercial Pvt Ltd 4th Floor, kolkata, PIN-700007 Total ' 1,18,00,000.00
It is found that the relevant copy of bank statement, PAN jurisdiction and in some case the copies of P/L A/c, Balance Sheet, Audit Report was submitted in respect of the above companies, The reason for investment in Amrit Cement Industries was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date. Madrid Traders Pvt Ltd. It is found that during the year under consideration Madrid Traders Pvt. Ltd applied share application money to the tune of Rs. 16,68,45,000/- to M/s Amrit Cement Industries Ltd. The said share application money was paid for 55700 shares at a face value of Rs.10/- with premium of Rs.490/- per share. The nature of business of the company is claimed to be financing. It is also found from the paper book that the copies of P & L a/c, Balance Sheet and audit report and copy of return filing evidence of the company were submitted. It is found that the company i.e. Madrid Traders Pvt. Ltd filed its return of income on 07.03.2013 declaring total income of Rs.67580/-. It is found from the P& L a/c that the company profit before tax of Rs.67583/- during the year. The company applied for 55700 shares in Amrit Cement Industries Ltd. The relevant bank statement was produced. Mr. Pradeep Kumar Bagla, Director of the company appeared in response to the summons u/sl31 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act, 1961 on 24.09.2015. Mr. Bagla stated that the company i.e Madrid Traders Pvt. Ltd. is a group company of M/s Amrit Page 19 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Cement Industries Ltd. & the business activity of the company isInvestment. Madrid Traders Pvt. Ltd. is an Investment company. Mr. Bagla stated that the company invested a sum of Rs. 2,78,50,000/- as share application money in Amrit Cement Ltd. The source of above investment was claimed to be the fund which was received horn the different parties as sale of shares held as Investment. He submitted the details of sale of share and the parties involved in these transactions which is given below: SI Company Name Address PAN No Amount (Rs.) No I Bright 2, Lalbazar Street, 2nd AADCB9325P 30,00,000.00 Commotrade Pvt Ltd Floor, Kolkata- 700001 2 YeriVincom Pvt Ltd 8/1, Princep Street, 2nd AAACY1028K 35,00,000.00 Floor, Room No. 2, Kolkata-700072 3 Ratio Vincom Pvt Ltd 7, Haldhar Basu Road, AAFCR4265A 50,00,000.00 Kolkata-700114 4 Titanic 7, Haladhar Basu Road, AADCT9104A 1,47,50,000.00 Distributors Pvt Kolkata, 700114 Ltd 5 Truthful AD-76, Sector-1, Salt AADCT9261C 14,50,000.00 Tradecomm Pvt Ltd Lake City, Kolkata- 700064 6 Deepa Bagla 226/1 Ajc Bose Road ADQPB4249P 3,00,000.00 Trinity 6th Floor Kolkata 700020 Total 2,80,00,000.00
The paper book reflects that the relevant copy of bank statement, PAN jurisdiction and in some case the copies of P/L A/c, Balance Sheet, Audit Report and return filing receipt in respect of the above parties were submitted. It is found that the source of investment in M/s Amrit Cement Industries Ltd. was claimed to be the fund which was received as sale of shares as stated above. The reason for investment in Amrit Cement Industries was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date. M/s Naman Health Food Industries Pvt. Ltd, It is found that during the year under consideration M/s Naman Health Food Industries Pvt. Ltd applied share application money to the tune of Rs. 18,66,50,000/- to M/s Amrit Cement Industries Ltd. The said share application money was paid for 373300 shares at a face value ofRs.10/- with premium of Rs.490/- per share. The nature of business of the company is claimed to be financing.
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 The copies P & L a/c, Balance Sheet and audit report and copy of return filing evidence of the company were submitted. It is found that the company i.e M/s Naman Health Food Industries Pvt. Ltd filed its return of income on 06.03.2013 declaring total income of Rs.nil. It is found from the P& L a/c that the company suffered a loss of Rs.7603/- during the year. The company applied for 373300 shares in Amrit Cement Industries Ltd. The relevant bank statement was produced in the paper book. Mr. Pradeep Kumar Bagla, Director of the company appeared in response to the summons u/sl31 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act, 1961 on 28.09.2015. Mr. Bagla stated that the company is a financing company and the source of income of the company is from investment. Mr. Bagla stated that the company i.e Naman Health Food Industries Pvt. Ltd. is a group company of M/s Amrit Cement Industries Ltd. and he is a common Director to both. Mr.Bagla stated that the company invested a sum of Rs. 18,66,50,000/- as share application money in Amrit Cement Ltd. The source of above investment was claimed to be the fund which was received from the different parties as sale of shares, as Share Application Money, Refund of Loans and Advances and as Trade receivables which is given below: 1. Sale of shares Rs.14,80,37,500/- 2. Share application money received Rs.3,69,36,900/- 3. Refund of loan Rs.5,00,000/- 4. Trade receivables Rs.94.l88/- Total Rs.18,55,68,588/- The details of sale of share and Share Application Money and the parties involved in these transactions which is given below: Details of Sources of fund for the FY 2011-12 Sale of Shares SI No | Company Name Address PAN No Amount (Rs.) 1 Gokul Commodities Pvt. 58, Eliott Road. 3rd Floor, AACCG3298B 1,90,00,000,00 Ltd. Kolkata-700016 2 Ideal Stock Advisory Pvt 6A, Saklat Palace, 4th Floor, AACCI2156G 2,40,00,000.00 Ltd Kolkata-700072 3 Jignesh Trading Pvt 2 Madan Street, 1st AACCJ5218Q 4,40,00,000.00 Ltd Floor, Kolkata-700072 5 MetalliteFinancialAdvisory 6A, Saklat Palace, 4th AAGCM3375H 1,75,00,000.00 Pvt Ltd Floor, Kolkata-700072 6 NarsinghVyapaar Pvt Ltd 58, Elliot Road, 3rd AABCN8267G 50,00,000.00 Floor, Kolkata-700016 7 Pecon Dealers Pvt Ltd 4, SukhlalJohuri Lane, AAFCP2896M 5,78,00,000.00 1 st Floor, Kolkata- 700007 8 VijayLakhmiVanijya Pvt Ltd 58, Elliot Road, 3rd AACCV4919L 25,00,000.00 Floor, Kolkata-700016 9 Vilasini Sales Pvt Ltd 2 Madan Street, 1 st AADCV5397F 2,37,500.00 Floor, Kolkata-700072 Share Application Money Page 21 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19
SI No Company Name Address PAN No Amount (Rs.) 1 Ideal Stock 6A, Saklat Palace, 4th Floor, AACCI2156G 1,18,25,000.00 Advisory Pvt Ltd Kolkata-700072 2 Kartavya Distributor Pvt 9/12 Lai Bazar Street, 1st 33,50,000.00 Ltd Floor, Block-A, Room No.-9, Kolkata-700001 3 Vilasini Sales Pvt 2 Madan Street, 1st AADCV5397F 2,17,37,500.00 Ltd Floor, Kolkata-700072
Refund of Loans andAdvances Address ________________ Amount (Rs.) SI No Name PAN No 226/1, AJC Bose Road, ADQPB4249P 10,00,000 1 Deepa Bagla Kolkata-700020
It is found from the submission of the assessee that only the relevant copies of Bank Statement and PAN jurisdiction of the above parties was submitted. It is also found that Naman Health Food Industries Pvt. Ltd. is a group Company where Mr. Bagla is one of the Directors. The reason for investment in Amrit Cement Industries was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, no dividend was received till date. M/s Ridhi Sidhi Vaniira Pvt. Ltd. It is found from the submission of the assessee that during the year under consideration the assessee, M/s Amrit Cement Industries Ltd., received share application money to the tune of Rs,8,l 1,00,000/- from M/s Ridhi Sidhi Vanijya Pvt. Ltd,. The said share application money was received at a face value of Rs.10/- with premium of Rs.490/- per share. The nature of business of the company is financing. The paper book reflects that the copies of P & L a/c, Balance Sheet and audit report and copy of return filing evidence of the company were submitted. It is found that the company i.e. Ridhi Sidhi Vanijya Pvt. Ltd filed its return of income on 06,03.2013 declaring total income of Rs.Nil. It is found from the P& L a/c that the company suffered a loss of Rs.6272/- during the year. The company applied for 162200 shares in Amrit Cement Industries Ltd. The relevant bank statement was produced in respect of share application money payment. Mr. Pradeep Kumar Bagla, Director of the company appeared in response to the summons u/s 131 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act, 1961 on 28,09,2015. Mr. Bagla stated that the company is an Investment company and the source of income of the Page 22 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 company is from investment. Mr. Bagla stated that the company i.e Ridhi Sidhi Vanijya Pvt. Ltd. is a group company of M/s Amrit Cement Industries Ltd, and he is common Director to both. Mr.Bagla stated that the company invested a sum of Rs. 8,11,00,000/- as share application money in Amrit Cement Ltd. The source of above investment was claimed to be the fund which was received from the different parties as sale of shares and Share Application Money held as Investment.
The details of sale of share and the parties involved in these transactions were submitted which is given below: Details of Sources of fund for the FY 2011-12 sale of shares SI Company Name Address PAN No Amount (Rs.) No Bright Commotrade Pvt 2, Lalbazar Street, 2nd AADCB9325P 2,19,00,000 1 Ltd Floor, Kolkata - 700001 Yeri Vinicom Pvt Ltd 8/1, PRINCEP STREET, AAACY1028K 5,31,00,200 2 2nd Floor, Room No. 2, Kolkata - 700072 Total 750,00,200/-
Share Application Money SI No Company Name Address PAN No Amount (Rs.) 1 BrightCommotrade 2, Lalbazar Street, 2nd Floor, AADCB9325P 33,00,000 Pvt Ltd Kolkata - 700001 2 Yeri VinicomPvt Ltd 8/1, PRINCEP STREET, 2nd AAACY1028K 28,00,000 Floor, Room No. 2, Kolkata - 700072 Total 61,00,000/-
It is appeared from the paper book that the relevant copy of Bank Statement and PAN jurisdiction Mid P& L a/c of the above companies was produced. Regarding investment in Amrit Cement Industries it was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However the company has not received any dividend till date. M/s Bharat Finance & Industries Ltd.. It is found from the submission of the assessee that during the year under consideration M/s Bharat Finance & Industries Ltd applied share application money to the tune of Rs.8,38,00,000/- to Amrit Cement Industries Ltd. The said share application money was paid for 1,67,600 shares at a face value of Rs.10/- with premium of Rs.490/- per share. The said amount was paid
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 through DCB Bank, Kolkata. The nature of business of the company is claimed to be Financing. It is found from the records that during the assessment proceeding, the summons u/s 131 was not issued to this party. The Registered Address of the Company is claimed to be at Mohala Takhat Garh, Civil Hospital Road, Opposite SK Medical, Phillaur, Jalandhar, Punjab- 144410. The notice u/s 133(6) was issued to the Company and in response to this notice the reply was submitted on 26.12.2014 and the copy of such reply was produced in the Paper Book, It is found from the Paper Book that the said Company has submitted the copies P & L a/c , Balance Sheet and audit report, copy of relevant bank statement and copy of return filing evidence of the company. It is found that the company i.e. Bharat Finance & Industries Ltd. filed its return of income for the assessment year 2012-13 on 30.09.2012 declaring total income of Rs. 51,505/-. The P& L a/c shows that the total turn-over of the company was Rs. 2,30,64,132/- during the year. During the year under consideration the company applied for 1,67,600 shares in Amrit Cement Industries Ltd. which was allotted. The Source of above Investment was claimed to be from Sale of Shares amounting to Rs.8,38,00,000/-. M/s Gulmohar Vvapaar Pvt Ltd,. During the year under consideration M/s Gulmohar Vyapaar Pvt. Ltd. applied share application money to the tune of Rs. 1,69,00,000/- to Amrit Cement Industries Ltd. The said share application money was paid for 33,800 shares at a face value of Rs.10/- with premium ofRs.490/- per share. The said amount was paid through Dhanlakshmi Bank, Klkata. The nature of business of the company is investment. It is found from the paper book that the copies P & L a/c, Balance Sheet and audit report, copy of relevant bank statement and copy of return filing evidence of the company was submitted. It is found that the company i.e. Gulmohar Vyapaar Pvt. Ltd filed its return of income for the assessment year 2012-13 on 07.03.2013 declaring total income of Rs.65,190. During the year under consideration the company applied for 33,800 shares in Amrit Cement Industries Ltd. which was allotted. Mr. Sunil Kumar Khemka, Director of the company appeared in response to the summons u/sl31 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act, 1961 on 28.09.2015. Mr. Khemka stated that the company is a Investment company and the source of income of the company is from investment, Mr, Khemka stated that the company invested a sum of Rs. 1,69,00,000/- as share application money in Amrit Cement Ltd. The source of above investment was claimed to be the fund which was received from the different parties as sale of shares held as Investment. He submitted the details of sale of share and the parties involved in these transactions which is given below:
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Details of Sources of Fund for the FY 2011-12 as sale of shares from the Allowing parties SI Company Name Address PAN No Amount (Rs.) No 1 Yeri Vincom Pvt Ltd 8/1, PRINCEP AAACY1028K 73,50,000.00 STREET, 2nd Floor Room No. 2,Kolkata - 700072 2 Potential Commercial 7, Haladhar Basu road, AAGCP1348F 15,00,000,00 Pvt Ltd kolkata, 700114 3 Third Eye Vinimay Pvt Ltd 103, Agarpara North Station AADCT9393F 50,00,000.00 Road, Near AsutoshBhawan,Kolkata- 700109 4 Titanic Distributors Pvt Ltd 7, haladharbasu road, AADCT9104A 30,50,000.00 kolkata, 700114 Total 1,69,00,000.00 In this case the copies of relevant Bank Statement and Return Filing evidence, copy of Profit and Loss Account Balance Sheet for the year under consideration were submitted. It is also found that Gulmohar Vyapaar Pvt. Ltd is a group Company where Mr. Sunil Kumar Khemka is one of the Directors.
It was stated regarding the reason for investment in Amrit Cement Industries that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date. M/s Jai Mata Pi Vaniiva Pvt Ltd.. During the year under consideration the assessee, M/s Amrit Cement Industries Ltd., received share application money to the tune of Rs.8,10,00,000/- from M/s Jai Mata Di Vanijya Pvt. Ltd. The said share application money was received at a face value of Rs.10/- with premium of Rs.490/- per share. The nature of business of the company is financing. The copies P & L a / c , Balance Sheet and audit report and copy of return filing evidence of the company was submitted. It is found that the company i.e. Jai Mata Di Vanijya Pvt. Ltd filed its return of income on 06.03.2013 declaring total income of Rs.Nil, It is found from the P& L a/c that the company suffered a loss of Rs.471/- during the year. The company applied for 1,62,000 shares in Amrit Cement Industries Ltd. The relevant bank statement was produced in respect of share application money payment. Mr. Pradeep Kumar Bagla, Director of the company appeared in response to the summons u/sl31 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act, 1961 on 29.09.2015. Mr. Bagla stated that the company is an Investment company and the source of income of the company is from investment. Mr. Bagla stated that the company invested a sum of Rs. 8,10,00,000/- as share application money in Amrit Cement Ltd. The source of above investment was claimed to be the fund which was received from the different parties as sale of shares held as Investment and as Share Application Money received during the year. Page 25 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Sale of shares Rs.7,92,00,000/- 1. Share application money received Rs.18.60.000/- Total Rs.8,10,60,000/- The details of sate of share and share Application money received from the parties involved inthese transactions were submitted which is given below:
Details of Sources of Fund for the FY 2011-12 as sale of shares from the following parties SI No Company Name Address PAN No Amount (Rs.) 1 Yeri Vincom Pvt Ltd 8/1, Princep Street, 2nd Floor AAACY1028K 3,15,00,000.00 Room No, 2, Kolkata - 700072
2 Alltime Vincom Pvt 103, Agarpara North, Station AAJCA7051P 1,65,00,000.00 Ltd Road, North 24Praganas, Kolkata - 700109 3 Favourite Shoppers 7, Haladhar Basu Road, AABCF7706L 50,00,000.00 Pvt Ltd Kolkata, 700114 4 LinkPoint 103, Agarpara North, Station AACCL0679F 25,00,000.00 Merchandise Pvt Road, North 24 Praganas, Ltd Kolkata - 700109 5 OversureVincom 7, Haladhar Basu Road, AABC05192R 40,00,000.00 Pvt Ltd Kolkata, 700114 6 Potential 7, Haladhar Basu Road, AAGCP1348F 16,40,000.00 Commercial Pvt Ltd Kolkata, 700114 1 Ratio Vincom Pvt 7, Haladhar Basu Road, AAFCR4265A 25,00,000.00 Ltd Kolkata, 700114 8 Smoothly Vintrade 103, Agarpara North, Station AAQCS1614P 50,00,000.00 Pvt Ltd Road, North 24 Praganas, Kolkata - 700109 9 SubhdharaTradelink Peary Das Lane, Kolkata - AAQCS1789P 85,00,000.00 Pvt Ltd 700006 10 Titanic Distributors 7, Haladhar Basu Road, AADCT9104A 20,00,000.00 Pvt Ltd Kolkata, 700114 Total 7,91,40,000.00 Sources of Fund for the FY 2011-12 as Share Application Money from following party Amount Company Name Address PAN No (Rs.) Potential Commercial 7, Haladhar Basu Road, Pvt AAGCP1348F Kolkata, 700114 Ltd 18,60,000.00 Total 18,60,000.00
The copies of relevant Bank Statement and PAN Jurisdiction of the above companies were enclosed with the paper book. In most of the cases profit and loss account and the Balance Sheet of the above companies for the Page 26 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 relevant financial year were produced. It is found that most of the above companies are operated from 2 or 3 addresses. The reason for investment in Amrit Cement Industries was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date. M/s Lord DealcomPvt.Ltd. During the year under consideration the assessee, M/s Amrit Cement Industries Ltd., received share application money to the tune of Rs. 12,29,50,000/- from M/s Lord DealcomPvt.Ltd., The said share application money was received at a face value of Rs.10/- with premium of Rs.490/- per share. The nature of business of the company is financing. It is found paper book that the copies of P & L a/c , Balance Sheet and audit report and copy of return filing evidence of the company were submitted. It is found that the company i.e. Lord DealcomPvt.Ltd. filed its return of income on 06.03.2013 declaring total income of Rs.26398/-. The company applied for 245900 shares in Amrit Cement Industries Ltd, Mr. Sunil Kumar Khemka, Director of the company appeared in response to the summons u/sl31 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act, 1961 on 29.09.2015. Mr. Khemka stated that the company is an Investment company and the source of income of the company is from investment Mr. Khemka stated that the company invested a sum of Rs. 12,29,50,000/- as share application money for 245900 shares in Amrit Cement Ltd. The source of above investment was claimed to be the fund which was received from the different parties as sale of shares held as Investment, as Share Application Money received and Unsecured Loan received during the year which is given below: 1. Share application money received 3,53,05,000/- 2. Received unsecured loan 2,40,00,000/- 3. Sale of shares- 8,61,45,000/- Total 12,38,50,000/- He submitted the details of sale of share and the parties involved in these transactions Details of Sources of fund for the FY 2011-12 as Sale of Shares from the followingparties S1 Company, N ame Address PANNo Amount (Rs.) No 1 Avon Dealcom Pvt 71, Sarat Chatterjee Road, Ltd Ground Floor, Kolkata-700089 AAICA6176C 5000000,00 Ideal Stock 6A, Saklat Palace, 4th Floor, AACCI2I56G 2 Advisory Pvt Ltd Kolkata-700072 6000000.00 3 Jignesh Trading 2, Madan Street, 1st Floor, AACCJ5218Q 44650000.00 Page 27 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 4 PvtLtd Kolkata-700072 Metalite Financial 6A,Saklat Palace, 4th Floor, Advisory Pvt Ltd Kolkata-700072 AAGCM3375H 5,00,000.00 Pecon Dealers Pvt 58, Elliot Road, Bata More, Ltd Kolkata-700016 5 AAFCP2896M Sandarv 27, 6 AANCS7261F Distributors & BiplabiTrailakyaMaharajSaraninaray 31,00,000.00 Sales Pvt Ltd ani Building, Kolkata-700001 1,58,95,000.00 Tenet Commerce 58, Elliot Road, Bata More, 7 Pvt Ltd Kolkata-700017 AADCT3369B 70,00,000.00 VijayLakhmiVanijya 58, Elliot Road, Bata More, Kolkata- 8 AACCV4919L Pvt Ltd 700016 40,00,000.00 Sources of fund as Share Application Money
1 Ideal Stock Advisory Pvt 6A, Saklat Palace, 4th AACCI2156G 20,00,000.00 Ltd Floor, Kolkata-700072 2 Jignesh Trading 2, Madan Street, 1st Floor, AACCJ5218Q 30,00,000.00 Pvt Ltd Kolkata-700072 3 Metalite Financial Advisory 6A, Saklat Palace, 4th AAGCM3375H 5,00,000.00 I Pvt Ltd Floor, Kolkata-700072 4 Sandarv Distributors & 27, BiplabiTrailakya AANCS7261F 2,33,05,000.00 Sales Pvt Ltd Maharaj Saraninarayani Building,Kolkata-700001 5 Vilasini Sales Pvt Ltd 2, Madan Street, 1st Floor, AADCV5397F 65,00,000.00 Kolkata-700072 Sources of fund as Unsecured Loan 1 Ideal StockAdvisory Pvt 6A, Saklat Palace, 4th Floor, AACCI2156G 15,00,000.00 Ltd Kolkata-700072 2 Pecon Dealers I 58, Elliot Road, Bata More, AAFCP2896M 9,00,000.00 Pvt Ltd | Kolkata-700016
It appears that the copies of relevant Bank Statement and PAN Jurisdiction of the above Companies were produced as appeared from the paper book. It is found that a number of Companies are situated at the same address. It is found that both Amrit Cement Pvt. Ltd. and M/s Lord Dealcom Pvt. Ltd, are group companies where Mr. Sunil Kumar Khemka is one of the directors. The reason for investment in Amrit Cement Industries was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date. M/sPrabhudhan Finance Pvt Ltd In the case of Prabhudhan Finance Pvt. Ltd. it is found that during the year under consideration the assessee, M/s Amrit Cement Industries Ltd., received share application money to the tune of Rs.50,00,000/- from M/s Prabhudhan Finance Pvt. Ltd.. The said share application money was received at a face
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 value of Rs.10/- with premium of Rs.490/- per share. The nature of business of the company is financing. It is found that the copies of P & L a/c, Balance Sheet and audit report and copy of return filing evidence of the company was submitted. It is found that the company i.e. Prabhudhan Finance Pvt. Ltd. filed its return of income on 31.03.2013 declaring total income of Rs.4,94,240/-. It is found from the P& L a/c that the profit before tax of the company was Rs. 4,94,244/- during the year. The company applied for 10,000 shares in Amrit Cement Industries Ltd. The relevant bank statement was produced in respect of share application money payment. Mr, Pradeep Kumar Bagla, Director of the company appeared in response to the summons u/sl31 of the Income Tax Act and his statement was recorded u/s 131 of the income Tax Act, 1961 on 29.09.2015. Mr.Bagla stated that the company is a financing company and the source of income of the company is from finance. Mr.Bagla stated that the company invested a sum of Rs.50,00,000/- as share application money in Amrit Cement Ltd. for which the Company was allotted 10,000 shares. The source of above investment was claimed to be the fund which was received from Amrit Cement Pvt. Ltd. as share application money received during the year is given below: SI No Company Name Address PAN No Amount (Rs.) 1 Amrit Cement Pvt. 226/1, AJC Bose Road, AAICA2667C 75,10,000/- Ltd. Kolkata-700020
The relevant copy of Bank Statement P& La/c, Balance sheet and the copy of filing of return for the year under consideration were submitted with the paper book. It is found that both Amrit Cement Pvt. Ltd. and M/s Prabhudhan Finance Pvt. Ltd. are the group companies where Mr. Pradeep Bagla is one of the directors The reason for investment in Amrit Cement Industries was stated that “the future prospects of the Cement Industry in North-East is very prospective hence our Company has invested in Amrit Cement Ltd.” However, the Company has not received any dividend till date. As desired by Ld.CIT(A), the remand report is submitted for his kind perusal and he may direct for further enquiries, if he deems fit.” 14. We note that thereafter again search action was carried out against assessee on 05.10.2021 and assessee’s assessment jurisdiction was centralised with DCIT, Central Circle- 4(1),Kolkata.Consequenlty the appeal was transferred from Ld. CIT(A)-20, Kolkata to Ld. CIT(A)-27 Kolkata.The Ld. Page 29 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 CIT(A) -27, Kolkata again called for remand report vide its letter dated 28.08.2025 and 21.10.2025 from the DCIT, CC- 4(1), Kolkata as evident from remand report dated 31.12.2025(hereinafter referred to as 2nd remand report) submitted by the DCIT, Central Circle-4(1), Kolkata which is available at Page No 1 to 37 of CP-1. The report was received by Ld. CIT(A)-27, Kolkata on 06.01.2026 as evident from Page No 1 of CP-1. The relevant extract of the report are extracted below:
“1. Your good self has called for a fresh enquiry report under Section 250(4) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) in the case of M/s Amrit Cement Ltd. (formerly M/s Amrit Cement Industries Ltd.) for the Assessment Year 2012-13. This is in addition to the remand report dated 30.11.2015 earlier furnished by the then Assessing Officer, DCIT, Central Circle-2(1), Kolkata, in the Original Appeal No. 1206/C.C.- 2(l)/CIT(A)-20/2014-15 to the erstwhile CIT(A)-20, Kolkata. 2. In the said communication, the Ld. CIT(A)-27 has made specific observations regardingthe share application money received by the assessee and has directed that a fresh remand report be submitted. 3. The brief fact of the case is as under: Assessee filed its Income Tax Return u/s 139(1) of the I.T. Act, 1961 for A.Y. 2012-13 on 29.09.2012 declaring total income of Rs. NIL. In the case of assessee, a search & seizure operation was conducted u/s 132 of the I.T. Act, 1961 on 30.08.2012 and subsequent dates at the business premises of the assessee at Trinity Tower, 6th floor, 226/1, A.J.C. Bose Road, Kolkata - 700020 and at UmlaperElaka, Rambai, Jaintia Hills, Meghalaya. Accordingly, Notice u/s 153A of the I.T. Act, 1961 was issued on 19.06.2013 for the A.Y. 2012-13. In response to the said notice, the assessee filed its return of income declaring total income as Rs. NIL. On perusal of the records it is found that the assessee company had received share capital at the face value of Rs. 10/- with premium Rs. 490/- per share from eleven corporate entities and two individuals during the assessment year 2012-13. The details of share application money received during the relevant year and allotment made are enclosed vide Annexure-1: Out of the total share application money received by the assessee during the year, an addition of ₹69,76,50,000/- was made under Section 68 of the Page 30 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Income Tax Act, 1961, pertaining to the amounts received from following corporate share applicants.
Sl Name of the share PAN Address Amount No applicant (Rs/-) I M/s. SMR Business Pvt AAECS7654P 226/1, A.J.C. Bose Road, 51,00,000 Ltd Kolkata-700020 II M/s. Chordia Trade Credit AABCC3177C 226/1, A.J.C. Bose Road, 7,60,00,000 Pvt Ltd Kolkata-700020 III M/s. Gravity Sales Agency AAACG9991M 226/1, A.J.C. Bose Road, 1,13,00,000 Pvt Ltd Kolkata-700020 IV M/s. Madrid Traders Pvt AAECM5072F 226/1, A.J.C. Bose Road, 2,78,50,000 Ltd Kolkata-700020 V M/s. Naman Health Food AACCN7164M 226/1, A.J.C. Bose Road, 18,66,50,000 Industries Pvt Ltd Kolkata-700020 VI M/s. RidhiSidhiVanijya Pvt AADGR2112C 226/1, A.J.C. Bose Road, 8,11,00,000 Ltd Kolkata-700020 VII M/s. Bharat Finance & AAACT5129L 226/1, A.J.C. Bose Road, 8,38,00,000 Industries Ltd Kolkata-700020 VIII M/s. Vana Nine Pvt Ltd AACCG5179M 226/1, A.J.C. Bose Road, 1,69,00,000 (Formerly Known as Kolkata-700020 GulmoharVyapaar Pvt Ltd) IX M/s. Jai Mata Di Vanijya AABCJ6379D 226/1, A.J.C. Bose Road, 8,10,00,000 Pvt Ltd Kolkata-700020 X M/s. Lord Dealcom Pvt Ltd AABCL5187D 226/1, A.J.C. Bose Road, 12,29,50,000 Kolkata-700020 XI M/s Prabhudhan Finance AACCP6358D 226/1, A.J.C. Bose Road, 50,00,000 Pvt Ltd Kolkata-700020 Total 69,76,50,000 4. It is apparent from the assessment order dated 25.03.2015 that during the course of assessment proceeding, notices under Section 133(6) of the Act were issued to the respective corporate share applicants to verify the genuineness of the transactions. Replies were received in response to these notices. Summons under Section 131 of the Act were issued to the Directors of the share applicant companies. However, none of the Directors appeared in compliance with the summons.
The A.O. recorded his observation in the Assessment Order while making addition u/s. 68 that: “as no director appeared in response to summons, all the three parameters set by the various Appellate Authorities i.e. Existence, Genuineness of transactions and Credit - worthiness, regarding genuineness of share capital received could not be ascertained"
The A.O. further recorded his observation in the Assessment Order while making addition u/s. 68 that: “The assessee company could not even explain the source of share capital/premium credited in its Books of Accounts as none of the Directors of the Companies to whom Summons u/s 131 issued by this office, from which share capital/premium received by Assessee Company and credited in its Books of Accounts appeared. In the light of the above, I did not find explanation from the Assessee regarding credit of fund in the form of Share Capital/Premium in its Books of Accounts, satisfactory hence amount so
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 credited has been added to the Total Income of the Assessee u/s 68 of Income Tax Act, 1961. Penalty Proceeding u/s 271AAB initiated separately.” 5. The assessment was completed as above under Sections 153A/143(3) of the Act on 25.03.2015, determining the total income at ₹69,84,58,170/-, which included the addition of ₹69,76,50,000/- under Section 68 of the Act on account of share application money received from the eleven corporate entities. Remand Report Dated 30.11.2025 As is evident from the letter issued by Your good self, a remand report bearing No. ACIT/C.C- 2(1)/Kol/Remand Report/2015-16/1462 dated 30.11.2015 was earlier submitted by the then Assessing Officer, ACIT, Central Circle-2(1), Kolkata, before the CIT (A)-20, Kolkata. As per the directions of the Ld. CIT (A)-20, Kolkata, summons under Section 131 of the Income Tax Act, 1961 were issued on 24.09.2015 to the Directors of the said eleven share subscriber companies. The Directors in the share applicant companies are mainly Mr Pradeep Kumar Bagla, Mrs Deepa Bagla and Mr Sunil Kumar Khemka. In compliance with the said summons, Mr. Pradeep Kumar Bagla and Mr. Sunil Kumar Khemka appeared on behalf of their respective companies and their statements were duly recorded. They explained the source of fund for giving share application money to the assessee. Fresh Remand Report Now, in view of the observations made by Your good self, a fresh enquiry report under Section 250(4) of the Income Tax Act, 1961 is submitted as under: 6. Your good self has observed that shares were issued to the Directors at face value of ₹10/- per share, whereas shares were allotted to corporate shareholders at a premium of ₹490/- per share. However, upon my careful examination of the assessee’s records, i.e. the Return of Allotment filed with the Registrar of Companies (ROC) dated 31.01.2012 and 31.03.2012 & Books of Accounts as well as the submissions made by the assessee in this regard, it is evident that shares were allotted during the Financial Year 2011-12, relevant to Assessment Year 2012-13, to all share applicants including Mr. Pradeep Kumar Bagla and Mrs. Deepa Bagla a premium of ₹490/- per share, in addition to the face value of ₹10/- per share. Return of allotment enclosed vide Annexure - 2. Thus, there is no discrimination found in allotment of shares to the Directors/Promotors as well as corporate share applicants. Hence, there is no adverse finding in this regard. Page 32 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Your good self has referred to the concluding paragraph of the earlier remand report dated 30.11.2015, wherein it is stated: “As directed by the Ld. CIT(A), the remand report is submitted for his kind perusal and he may direct for further enquiries if he deems fit.” It is respectfully submitted that the above mentioned in the Original Remand Report dated 30.11.2015 is standard and general remarks made by the A.O. in most of the remand report only in the view that in case the Ld. CIT (A) wants any further enquiry, then it may be carried out by the A.O. which is duly mandated in section 250(4) of the Act itself. Hence, no further comment is made by me now. 8. Your goodself further observed that in the remand report dated 30.11.2025, the then AO has not stated anything about the nature & source of fund flown, business activities/business rationale and capacity of investment of the fund flown companies /2nd source companies. Upon examination of the earlier remand report dated 30.11.2015 and documents submitted in the course of second remand proceedings, it is observed that the source of funds in the hands of the share subscriber companies comprises are out of Sale proceeds of investments, Refund of loans and Receipt of Share Application Money etc. All the entities providing these funds are dealing in shares. I have tried to make extensive enquiry against the second source companies on test checkbasis though it is not required for the purposes of section 68 of the Act for the A.Y. 2012-13. The relevant part of section 68, applicable w.e.f. A.Y. 2013-14, is reproduced hereunder: “Provided further that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory: ” INSPECTORS REPORT: During Remand proceeding, Departmental Inspector was deputed for furnishing fresh enquiry report after making physical verification of existence and identity of the Source of Source of the share capital raised by M/s Amrit Cement Ltd. Page 33 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 The shareholders of M/s Amrit Cement Ltd. had made investments in the Shares of M/s Amrit Cement Ltd. during the year under consideration after receiving funds from various concerns which happens to be the Source of Source i.e. Second Source Companies. In order to conduct the said enquiry, the Inspector visited at the given addresses of the business premises of the following entities: 1. M/s. Ratio Vincom Pvt. Ltd., PAN: AAFCR4265A 2. M/s. Truthful Tradecom Pvt. Ltd., PAN: AADCT9261C 3. M/s. Ideal Stock Advisory Pvt. Ltd., PAN: AACCI2156G 4. M/s. Kartavya distributors Pvt. Ltd., PAN: AADCK9908K 5. M/s. Pingle supply Pvt. Ltd., PAN: AAFCP8146G 6. M/s. Potential Commercial Pvt. Ltd., PAN: AAGCP1348F 7. M/s. Third Eye Vinimay Pvt. Ltd., PAN: AADCT9393F 8. M/s. Link Point Merchandise Pvt. Ltd., PAN: AACCL0679F 9. M/s. OversureVincom Pvt. Ltd., PAN: AABCO5192R 10. M/s. Smoothly Vintrade Pvt. Ltd., PAN: AAQCS1614P 11. M/s. Avon Dealcom Pvt. Ltd., PAN: AAICA6176C 12. M/s. Satyam Playwood Merchants Pvt. Ltd., PAN: AAOCS8749M 13. M/s Adeline Sales Pvt. Ltd., PAN: AAKCA0547R 14. Bhagyalaxmi Agency Pvt. Ltd., PAN: AADCB6984C The Inspector enquired about the existence and identity of the Source of Source at their respective addresses and found their existence at the said addresses. The Inspector’s Report with respect to the above entities have been duly submitted by him. Further, most of the share applicants stated that the transactions pertain to F.Y. 2011-12, which is more that thirteen years old. As such, they could not provide any ledger account in respect of income for the A.Y. 2011-12 and A.Y. 2012-13. However, on enquiry following evidence are gathered that they are assessed to income tax as under:-
SMR Business Pvt Ltd
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Sl No Name of second PAN Particulars source company i. M/s. Shree AAGCS5008R • Assessment order u/s143(3) r.w.s 153A Shakambhari Vastu dated 26.03.2015 for A.Y 2011-12. Nirman Pvt Ltd • CIT (A) order u/s 250 dated 31.03.2023 for A.Y. 2011-12. • Assessment order u/s 143(3) r.w.s. 153A dated 26.03.2015 for A.Y.2012-13. • CIT(A) order u/s 250 dated 31.03.2023 for A.Y. 2012-13. • Assessment order u/s 143(3) dated 26.03.2015 for A.Y. 2013-14 • CIT (A) order u/s 250 dated 31.03.2023 for A.Y. 2013-14.
It is observed that in the A.Y. 2013-14, an addition of ₹1,01,00,000/- was made in the hands of M/s. Shree Shakambhari Vastu Nirman Pvt Ltd under Section 68 of the Act in respect of share application money received from M/s Bharat Finance & Industries Ltd. However, the Ld. CIT(A)-20, Kolkata, vide Order No. ITBA/APL/S/250/2022- 23/1051768280(1), deleted the said addition upon being satisfied that M/s Bharat Finance & Industries Ltd. is also a group company. M/s. Chordia Trade Credit Pvt Ltd. Sl PAN Particulars Name of second source No Company i. M/s. Bhagyalaxmi Agency Pvt AADCB6984C • ITR Ack A.Y. 2016-17. Ltd ii. M/s.Diagram Distributors Pvt AADCD3726E • ITR Ack A.Y. 2016-17, 201718,2018-19. Ltd iii. M/s. Porter Buildcom Pvt Ltd AAECP3823H • ITR Acknowledgment for A.Y. 2022- 23,202324 & 2024-25. Order u/s 143(3) for A.Y. 2017-18 29.11.2019. • Appeal Effect Order for A.Y. 202021 dated 26.07.2025. iv. M/s Sunstar Infrabuild Pvt Ltd AALCS1729C • ITR Acknowledgment for A.Y. 2021- 22,202223,2023-24,2024-25. • Order u/s 143(3) for A.Y. 2017-18 dated 13.11.2019. v. M/s.Sixth Sense Vintrade Pvt AAPCS6675M • Approval u/s 151 for A.Y. 2013-14 dated Ltd 03.03.2020. M/s. Gravity Sales Agency Pvt Ltd Sl PAN Particulars Name of second source No company i. M/s. Adeline sales Pvt Ltd AAKCA0547R • Computation Sheet for A.Y. 2012-13 dated 09.12.2019. ii. M/s. Bubli Banty Tradecom Pvt Ltd AACCB8829M • ITR Acknowledgment for A.Y. 2016-17
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 iii. M/s. Strong Dealers Pvt Ltd AANCS9028C • ITR Acknowledgment for A.Y. 2016-17, 2017-18, 2018-19. MM/s. Madrid Traders Pvt Ltd Sl No. Name of second source PAN Particulars company i. M/s. Ratio Vincom Pvt Ltd AAFCR4265A • ITR Acknowledgment for A.Y. 2022-23, 202324 & 2024-25. • Order u/s 143(3) for A.Y. 2017-18 dated 20.12.2019. ii. M/s. Titanic Distributors Pvt Ltd AADCT9104A • ITR Acknowledgment for A.Y. 2016-17, 201718, & 2020-21. • Assessment order for A.Y. 2017-18 dated 31.10.2019. iii. M/s. Truthful Tradecom Pvt Ltd AADCT9261C • ITR Acknowledgment for A.Y. 2022-23, 202324 & 2024-25. 25.11.2025 Effect order dated & 18.06.2025 u/s 5(2) of the VSV Act ,2020 for the A.Y. 2012-13. M/s. Naman Health Food Industries Pvt Ltd. Sl No. Name of second source PAN Particulars company i. M/s. Ratio Vincom Pvt Ltd AAFCR4265A • ITR Acknowledgment for A.Y. 2022-23, 202324 & 2024-25. • Order u/s 143(3) for A.Y. 2017-18 dated 20.12.2019. ii. M/s. Titanic Distributors Pvt AADCT9104A • ITR Acknowledgment for A.Y. 2016-17, Ltd 201718, & 2020-21. • Assessment order for A.Y. 2017-18 dated 31.10.2019. iii. M/s. Truthful Tradecom Pvt AADCT9261C • ITR Acknowledgment for A.Y. 2022-23, Ltd 202324 & 2024-25. • Effect order dated& u/s 5(2) of the VSV Act ,2020 for the A.Y. 2012-13. iv. M/s. Kartavya distributors Pvt AADCK9908K • ITR Acknowledgment for A.Y. 2022- Ltd 23,2023-24 & 202425. M/s. Bharat Finance & Industries Pvt Ltd Sl No Name of second source PAN Particulars company i. M/s. Pingle supply Pvt Ltd AAFCP8146G • ITR Acknowledgment for A.Y. 2021-22 & 2022-23. • Order u/s 143(3) for A.Y. 2017- 18 dated 21.11.2019. ii. M/s. Shyamli Fashion AANCS5891F • ITR Acknowledgment for A.Y. Traders Pvt Ltd 2017-18, 2018-19 & 2019-20. • Order u/s 143(3) for A.Y. 2017- 18 dated 25.09.2019 iii. M/s. Paras Adhesive Traders AAFCP8704Q • ITR Acknowledgment for A.Y. Pvt Ltd 2017-18, 2018-19 & 2019-20. • Order u/s 154/147 for A.Y. 2015-16 dated 24.03.2025. Page 36 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 • Order u/s 143(3) for A.Y. 2017- 18 dated 18.12.2019. iv. M/s. Nairit Tranning Centre AADCN5016B • ITR Acknowledgment for A.Y. Pvt Ltd 2020-21, 2021-22 & 2022-23. • Order u/s 143(3) for A.Y. 2017- 18 dated 07.11.2019. v. M/s. AAOCS8749M • ITR Acknowledgment for A.Y. 2017- Satyam Playwood Merchants 18, 201819 & 2019-20. Pvt Ltd Order u/s 143(3) for A.Y. 2017-18 dated 30.10.2019. vi. M/s. Krishna Web Tech Pvt AADCK7958H • ITR Acknowledgment for A.Y. 2017-18, Ltd 201819 & 2019-20. 7. Order u/s 143(3) for A.Y. 2017-18 dated 24.12.2019. M/s. Vana Nine Pvt. Ltd. (Formerly known as M/s.GulmoharVyapparPvt. Ltd.) Sl No Name of second source PAN Particulars company i. M/s. Potential Commercial Pvt AAGCP1348F • ITR Acknowledgment for A.Y. Ltd 2023-24 , 202425 & 2025-26. ii. M/s. Third Eye Vinimay Pvt Ltd AADCT9393F • ITR Acknowledgment for A.Y. 2022-23, 202324 & 2024-25. Orde u/s 5(2) of VSV, 2020 for A.Y • 2012-13 dated 16.08.2022. iii. M/s. Titanic Distributors Pvt AADCT9104A • ITR Acknowledgment for A.Y. Ltd 2016-17, 201718, & 2020-21. Assessment order for A.Y. 2017-18 • dated 31.10.2019. M/s. Jai Mata Di Vanijya Pvt Ltd. Sl No Name of second source PAN Particulars Company i. M/s. Alltime Vincom Pvt Ltd AAJCA7051P A.Y. 2022-23, 202324 & 2024-25. • Order u/s 5(2) of DTVSV Act, 2020 • dated 09.09.2022 for A.Y. 2012-13. • Appeal Order u/s 250 for A.Y. 2012-13 dated 30.06.2016. • Order u/s153A r.w.s. 143(3) for 2014- 15 to 202021 dated 02.09.2021. ii. M/s. Favourite Shoppers Pvt AABCF7706L • ITR Acknowledgment for A.Y. 2022- Ltd (BRUSHED STEEL 23, 2023-24 & 2024-25. PRIVATE LIMITED) • Demand notice and Computation sheet relating to assessment order u/s 143(3) for A.Y. 2017-18 dated 13.11.2019. iii. M/s. LinkPoint Merchandise AACCL0679F • ITR Acknowledgment for A.Y. 2022- Pvt Ltd 23, 2023-24 & 2024-25. iv. M/s. Oversure Vincom Pvt AABCO5192R • ITR Acknowledgment for A.Y. 2022- Ltd 23, 2023-24 & 2024-25. • Order u/s 250 for A.Y. 2012- 13 dated 04.07.2016 v. M/s. Potential Commercial AAGCP1348F • ITR Acknowledgment for A.Y. 2023- Pvt Ltd 24 , 2024-25 & 2025-26. Page 37 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 vi. M/s. Ratio Vincom Pvt Ltd AAFCR4265A • ITR Acknowledgment for A.Y. 2022- 23, 2023-24 & 2024-25. • Order u/s 143(3) for A.Y. 2017-18 dated 20.12.2019. vii. M/s. Smoothly Vintrade Pvt AAQCS1614P • ITR Acknowledgment for Ltd A.Y. 2022-23, 2023-24 & 2024-25. • Order u/s 250 for A.Y. 2012-13 viii. M/s. Subhdhara Tradelink AAQCS1789P • ITR Acknowledgment for A.Y. 2022- Pvt Ltd 23, 2023-24 & 2024-25. • Order giving effect u/s 5(2) r.w.s. 6 of DTVSV, 2020 for A.Y. 2012-13 dated 17.01.2023. ix. M/s. Titanic Distributors Pvt AADCT9104A • ITR Acknowledgment for A.Y. 2016- Ltd 17, 2017-18, & 2020-21. • Assessment order for A.Y. 2017-18 dated 31.10.2019. M/s. Lord Dealcom Pvt Ltd Sl No Name of second source company PAN Particulars i. M/s. Avon Dealcom Pvt. Ltd. AAICA6176C • ITR Acknowledgment for A.Y. 2020-21, 2021-22 & 202425. ii. M/s. Ideal Stock Advisory Pvt. Ltd. AACCI2156G • ITR Acknowledgment for A.Y. 2022-23, 2023-24 & 202425. iii. M/s. Metallite Financial Advisory (p) AAGCM3375H • ITR Acknowledgment for A.Y. Ltd 2016-17, 2018-19 & 201920. iv. M/s. Pecon Dealers Pvt Ltd AAFCP2896M • Computation sheet relating to order u/s 154 for A.Y. 2012-13 dated07.01.2022. v. M/s. Sandarv Distributors & Sales AANCS7261F • ITR Acknowledgment for A.Y. Pvt Ltd 201314. • Appeal EffectOrder for A.Y. 2013-14dated03.07.2025. vi. M/s. Tenet Commerce Pvt Ltd AADCT3369B • ITR Acknowledgment for A.Y. 201415.
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 M/s. Prabhudhan Finance Pvt Ltd Sl No Name of second source PAN Particulars company i. Amrit Cement Company Pvt AAICA2667C • Assessment order u/s 143(3) dated Ltd 22.03.2023 for A.Y. 2019-20 • CIT(A) order u/s 250 dated 18.01.2025 for A.Y. 2019-20 • CIT(A) order u/s 205 dated 18.01.2025 for A.Y. 2020-21 • Assessment order u/s 143(3) dated for A.Y. 2021-22. 27.12.2022 CIT(A) order u/s 250 dated • 28.01.2025 forA.Y. 2021-22. 15.05.2023 Assessmentorder u/s 143(3) datedfor A.Y. 2022-23 • CIT (A) order u/s 250 dated 29.01.2025 for A.Y. 2022-23.
M/s Amrit Cement Company Pvt. Ltd., is a group entity assessed to tax under this charge. Assessments for A.Y. 2019-20 to 2022-23 have been completed. The above documents are enclosed for your ready reference vide Annexure - 3. No discrepancy noted by the undersigned. It is an admitted fact that the enquiry was conducted at the fag end of year 2025 for F.Y. 201112 which is mere that thirteen years. As such. the claim aremadeby the second source companies that they do not keep such old records. Further, it is noted that the eleven corporate entities are group companies and assessed to income tax regularly. They were also assessed to tax u/s 143(3)/147 as under:- SI No Name of the share PAN applicant Asst. Assessed Date Year under section i. M/s. Chordia Trade Credit Pvt AABCC3177C 2011-12 147/144 03.12.2018 Ltd 2017-18 143(3) 20.11.2019 ii. M/s. Gravity Sales Agency Pvt AAACG9991M 2014-15 144/147 11.02.2022 Ltd 2020-21 to 143(3) 27.04.2023 2022-23 iii. M/s. Madrid Traders Pvt Ltd AAECM5072F 2017-18 143(3) 06.09.2019 iv. M/s. Naman Health Food AACCN7164M 2012-13 143(3)/147 20.12.2019 Industries Pvt Ltd 2017-18 143(3) 27.09.2019 v. M/s. Bharat Finance & AAACT5129L 2010-11 144/147/ 29.12.2017 Industries Ltd 143(3) 2011-12 144/147 29.12.2018 /143(3) 2016-17 143(3) 22.12.2018 2017-18 143(3) 18.12.2019 2016-17 147 18.03.2025 Page 39 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 vi. M/s. Vana Nine Pvt Ltd AACCG5179M 2019-20 143(3) 20.04.2023 (Formerly Known 2020-21 143(3) 20.04.2023 as GulmoharVyapaar Pvt Ltd) 2021-22 143(3) 20.04.2023 2022-23 143(3) 20.04.2023 vii. M/s. Jai Mata AABCJ6379D 2012-13 143(3)/147 05.11.2019 Di Vanijya Pvt Ltd viii. M/s. Lord Dealcom Pvt Ltd AABCL5187D 2010-11 147/143(3) 29.12.2017 2012-13 143(3)/147 16.12.2019 2017-18 143(3) 31.08.2019 2019-20 to 143(3) 24.04.2023 2022-23 ix. M/s Prabhudhan Finance Pvt AACCP6358D 2010-11 147/143(3) 14.12.2017 Ltd 2016-17 143(3) 25.12.2018 2017-18 143(3) 04.12.2019 On perusal of the assessment order it is apparent that in some cases additions were made and additions were deleted by CIT(A) & ITAT as under. . Sl No. Name Assessment Appellate Proceedings Year i M/s. Prabhudhan Finance 2016-17 Addition of Interest of Rs. 8.96 Lakh on Pvt Ltd account of Interest on Loan. Appellate Order passed dated 15.11.2019. ITAT order passed on 20.03.2020 ii. M/s. Gravity Sales 2008-09 Addition of Rs. 23 Lacs u/s 68 of the Act. Agency Pvt Ltd Appellate order passed dated 27.07.2017 deleting the addition. iii. M/s. Naman Health Food 2011-12 Addition of Rs. 1.14 Cr. as undisclosed Industries Pvt Ltd income. Appellate order passed dated 09.01.2025 setting aside the matter to the file of A.O. In the following cases appeals are pending as evident from Form No-35 submitted in this office. SI No. Name Assessment Appellate Proceedings Year i. M/s. Gravity Sales Agency Pvt Ltd 2011-12 Addition of Rs. 11 Lakh u/s 68 of the Act. Appellate Proceedings pending. 2014-15 Addition of Rs. 45 Lakh u/s 69A of the Act. Appellate Proceedings pending. ii. M/s. Lord Dealcom Pvt Ltd 2010-11 Addition of Rs. 73 Lacs u/s 68 of the Act. Appellate Proceedings pending. 2012-13 Addition of Rs. 4.76 Cr. u/s 69A of the Act. Appellate Proceedings pending. iii. M/s Bharat Finance & 2010-11 Addition of Rs 1.73 Cr u/s 68 of the Act. Indus. Ltd Appellate Proceedings pending. 2011-12 Addition of Rs 6.59 Cr u/s 68 of the Act. Appellate Proceedings pending. 2016-17 Addition of Rs 1.49 Cr u/s 68 of the Act. Appellate Proceedings pending.
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Copies of the Asstt. Order, Appeal order, Form no. -35 are enclosed vide Annexure - 4. So, it is presumed that the assessing officers of the said share applicant companies already have examined the source time to time. 6. It found that the present jurisdiction of the share applicant companies as under Sl No Name Address PAN Jurisdiction I M/s. SMR Business Pvt Ltd 226/1, A.J.C. Bose AAECS7654P Ward-9(1),Kol Road, Kolkata-700020 Ii M/s. Chordia Trade Credit Pvt 226/1, A.J.C. Bose AABCC3177C Ward-12(1),Kol Ltd Road, Kolkata-700020 Iii M/s. Gravity Sales Agency Pvt 226/1, A.J.C. Bose AAACG9991M C.C-4(1),Kol Ltd Road, Kolkata-700020 Iv M/s. Madrid Traders Pvt Ltd 226/1, A.J.C. Bose AAECM5072F Ward-9(1),Kol Road, Kolkata-700020 V M/s. Naman Health Food 226/1, A.J.C. Bose AACCN7164M Ward-1(1),Kol Industries Pvt Ltd Road, Kolkata-700020 Vi M/s. RidhiSidhiVanijya Pvt Ltd 226/1, A.J.C. Bose AADGR2112C Ward-2(1),Kol Road, Kolkata-700020 Vii M/s. Bharat Finance & 226/1, A.J.C. Bose AAACT5129L Ward-5(1),Kol Industries Ltd Road, Kolkata-700020 Viii M/s. Vana Nine Pvt Ltd 226/1, A.J.C. Bose AACCG5179M CC-4(1),Kol (Formerly Known Road, Kolkata-700020 as GulmoharVyapaar Pvt Ltd) ix M/s. Jai Mata 226/1, A.J.C. Bose AABCJ6379D Ward-7(1),Kol Di Vanijya Pvt Ltd Road, Kolkata-700020 x M/s. Lord Dealcom Pvt Ltd 226/1, A.J.C. Bose AABCL5187D CC-4(1),Kol Road, Kolkata-700020 xi M/s Prabhudhan Finance Pvt 226/1, A.J.C. Bose AACCP6358D Ward-12(1),Kol Ltd Road, Kolkata-700020
On examination of the financial capacity of the eleven corporate entities the net worth of the respective companies are found as under.
Sl No Name of the share applicant company Share capital Reserve Total(Rs/-) (Rs/-) Surplus (Rs/-) I M/s. SMR Business Pvt. Ltd. 99,65,000/- 5,38,21,150/- 6,37,86,150/- Ii M/s. Chordia Trade Credits Pvt. Ltd. 4,78,80,000/- 40,26,71,112/- 45,05,51,112/- Iii M/s.Gravit Sales Agency Pvt. Ltd. 1,90,51,600/- 25,47,83,418/- 27,38,35,018/- Iv M/s. Madrid Traders Pvt. Ltd. 45,40,000/- 10,65,67,116/- 11,11,67,116/- V M/s. Naman Health Food Industries (P) 38,20,000/- 18,22,35,978/- 18,60,55,978/- Ltd. Vi M/s. Ridhi Sidhi Vanijya (P) Ltd. 32,48,000/- 7,54,52,013/- 7,87,00,013/- Vii M/s. Bharat Finance & Indus. Ltd. 1,24,74,800/- 47,58,78,240/- 48,83,53,040/- Viii M/s. 30,25,360/- 70219217/- 7,32,44577/- Gulmohar Vyapaar Pvt. Ltd. Ix M/s. Jai Mata Di Vanijya (P) Ltd. 33,54,000/- 7,80,56,823/- 8,14,10,823/- X M/s. Lord Dealcom (P) Ltd. 18,56,000/- 8,60,63,320/- 8,79,19,320/- Xi M/s. Prabhudhan Finance (P) Ltd. 45,40,000/- 10,65,67,116/- 11,11,67,116/-
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 From the records and submissions made during the assessment proceedings, it is noted that: Notices under Section 133(6) of the Act were issued by the DCIT, Central Circle-2(1), Kolkata to the share subscriber companies. It is observed that each of the share applicant companies responded to the statutory notices and furnished acknowledgments of filing their income tax returns, copies of audited financial statements, including Balance Sheets, wherein the investments made in the assessee company are duly reflected& bank statements for the relevant period evidencing the payment of subscription money etc. This issue has been examined by the then AO in the earlier remand report dated 30.11.2015. Additionally, the return of allotment filed by the assessee with the Registrar of Companies, Ministry of Corporate Affairs, substantiates the fact of share allotment to these applicants. It is further observed that the net worth of each of the share applicant companies, as disclosed in their respective Balance Sheets and other financial documents, significantly exceeds the amount invested in the shares of the assessee company. Moreover, most of the share applicant companies have also explained the source of funds in their hands by submitting return filing acknowledgments, audited financial statements, relevant pages of bank statements of the fund- flow companies (i.e., second source entities) etc. On perusal of these documents, it is evident that the second source entities are also investment companies. The funds were transferred through banking channels against transactions such as purchase of shares from the share subscriber companies, refund of loans/advances & share application money etc. These funds were ultimately routed to the assessee company in the form of share application money.
As per the directions of the Ld. CIT (A)-27, Kolkata, summons under Section 131 of 11. the Income Tax Act, 1961 were issued on 21.08.2025 to the Directors of the said eleven share subscriber companies. In compliance with the said summons, Mr. Pradeep Kumar Bagla and Mr. Sunil Kumar Khemka appeared on behalf of their respective subscriber companies. Their statements were duly recorded on oath on 03.09.2025.They have explained the source of fund for giving share application money to the assessee. They also explained the reasons for not appearing personally in response to the Summons issued to them during assessment proceedings, as per Answer to Question No. 23 of the above statements made on 03.09.2025.
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IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Copies of the statements of Mr. Pradeep Kumar Bagla and Mr. Sunil Kumar Khemka recorded on oath on 03.09.2025 are enclosed herewith vide Annexure - 5 for kind perusal, reference and further consideration. The Directors in the share applicant companies are mainly Mr Pradeep Kumar Bagla, Mrs Deepa Bagla and Mr Sunil Kumar Khemka. They are also assessed to income tax under my charge. The details of directors of these companies are as under:- SI No. Name of Company Name of Directors & Date of appointment I M/s. SMR Business Pvt Ltd i. Pradeep Bagla - 23.09.2009 ii. Deepa Bagla - 05.04.2019 Ii M/s. Chordia Trade Credit Pvt Ltd i. Pradeep Bagla - 16.02.2009 Deepa Bagla - 16.02.2009 ii. Iii M/s. Gravity Sales i. Sunil Kumar Khemka - 13.03.2009 Agency Pvt Ltd ii. Surendra Prasad - 13.07.2024 Iv M/s. Madrid Traders Pvt Ltd i. Pradeep Bagla - 25.10.2010 ii. Deepa Bagla - 09.04.2013 V M/s. Naman Health Food Pradeep Bagla - 25.10.2010 i. Industries Pvt Ltd Deepa Bagla - 09.04.2013 ii. Vi M/s. Ridhi Sidhi Vanijya Pvt Ltd i. Pradeep Bagla - 25.10.2010 ii. Deepa Bagla - 09.04.2013 vii M/s. Bharat Finance & Industries i. Pradeep Bagla - 24.02.2012 Ltd ii. Deepa Bagla - 04.08.2018 iii Sanjay Chatterjee - 11.12.2023 viii M/s. Vana Nine Pvt Ltd (Formerly i.Sunil Kumar Khemka - 25.10.2010 ii Known as Gulmohar Vyapaar Pvt Surendra Prasad - 13.07.2024 Ltd) ix M/s. Jai Mata Di Vanijya Pvt Ltd i. Pradeep Bagla - 25.10.2010 ii. Deepa Bagla - 09.04.2013 x M/s. Lord Dealcom Pvt Ltd i. Sunil Kumar Khemka - 25.10.2010 ii Surendra Prasad - 13.07.2024 xi M/s Prabhudhan Finance Pvt Ltd i. Pradeep Bagla - 11.03.2010 Deepa Bagla - - 06.11.2013 ii. 12. The documents furnished during the course of the remand proceedings have been carefully examined. It is observed that the share applicants have provided detailed information regarding the source of funds in their hands. The same were also examined by the then AO in the remand report dated 30.11.2015. Certified copies of the ledger account of all the share subscriber companies for the 13. A.Y 2012-13 are enclosed vide Annexure 6. 14. On perusal of the submissions and accounts it is observed that no dividend has been declared by M/s. Amrit Cement Ltd. 17. Quoted price & Book value of shares :It is observed that the assessee is not a listed company. As such quoted price is not available. The assessee submitted book value of share for each financial year since commencement of business to till 31.03.2024. The details are enclosed vide Annexure - 7. 18 Basis of collection of premium of Rs.490/- per share: The assessee vide letter dated 02.09.2025 explained the basis of collection of premium of Rs. 490/- per share which is reproduced as under: Page 43 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 “We would like to inform you that only the subscriber to thememorandum i.e. individual promoters of the company were allotted equity shares @ Rs. 10 per share at the time of incorporation of the company. Those was only 50,000 equity shares @ Rs. 10 per share worth Rs. 5 Lacs. No allotment was done to group companies at the time of incorporation. Later onpromoters’ or directors of the company together with group companies were allotted shares @ Rs. 500/- per share i.e. at a premium of Rs. 490/- per share. We were setting up an integrated Cement Plant with Captive Power Plant at total investment of more than Rs. 500 crores to be funded by the Promoters & Group Companies along with the bank & financial institutions. The plant is at Jaintia Hills, Meghalaya. North East is a very developing area & Government is always focused in development of infrastructure projects in North East. Plant stated construction in the year 2009 and was came to production in the year 2012. There was huge demand of cement in North East because of rural economy & Government Projects. Meghalaya is also rich in Mineral resources. So, all the Raw Materials required for the plant operations are locally available. Besides this, we were entitled for Capital Subsidy, Transport Subsidy, Interest Subsidy, Insurance Subsidy, Excise Refund (Later on GST Refund), VAT & CST Remission, Income Tax Exemption. All these subsidies taken together amounts to viability of the plant. Considering the bright future prospect of the our company and as decided by the Board of Directors of our company and promotor companies it was unanimously decided to issue shares at a premium of Rs. 490/- for all the promotor of our company.” 19. Date wise fund flow chart of share application made by the share subscriber group companies & source of fund is as under: S M R BUSINESSES PRIVATE LIMITED SI Cheque Date of Name of Amount (Rs.) Name of Party Source No. No. Payment Bank, Branch and account No i. 846214 12.03.2012 PNB, New Market 29,00,000 M/s. Refund of Branch- Kolkata, A/c Shree loan/ No. Shakambhari advance 0093002109025 Vastu Nir man 883 Pvt Ltd (Group Company) ii. 846205 14.03.2012 -Do- 19,00,000 -Do- Refund of loan/ advance iii. 846217 28.03.2012 -Do- 3,00,000 -Do- Refund of loan/ advance Total 51,00,000 CHORDIA TRADE CREDITS PRIVATE LIMITED Sl No. Cheque No. Date of Name of Amount Name of the Party Source Payment Bank, Branch and (Rs.) account No i. 845274 04.04.2011 Punjab National Bank, 10,00,000/- M/s. Sale of share New Market Kolkata, Porter Buildcom Pvt A/c No: Ltd 00930021090276 78 ii. 845283 14.05.2011 -Do- 10,00,000/- M/s Sunstar Sale of share Infrabuild Pvt Ltd iii. 845285 22.10.2011 -Do- 20,00,000/- M/s. Sixth Sense Sale of share Vintrade Pvt Ltd iv. 845286 24.10.2011 -Do- 40,00,000/- M/s.Sixth Sense Sale of share Page 44 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Vintrade Pvt Ltd v. 845287 25.10.2011 -Do- 14,00,000/- M/s.Sixth Sense Sale of share Vintrade Pvt Ltd vi. 845288 29.10.2011 -Do- 5,00,000/- M/s.Bhagyalaxmi Sale of share Agency Pvt Ltd vii. 845289 16.11.2011 -Do- 20,00,000/- M/s.Instil Sale of share Distributors Pvt Ltd viii. 845290 17.11.2011 -Do- 32,00,000/- M/s.Sixth Sense Sale of share Vintrade Pvt Ltd ix. 845291 21.11.2011 -Do- 30,00,000/- M/s. Sixth Sense Sale of share Vintrade Pvt Ltd x. 845292 22.11.2011 -Do- 36,00,000/- M/s. Sixth Sense Sale of share Vintrade Pvt Ltd xi. 845293 25.11.2011 -Do- 30,00,000/- M/s.Sixth Sense Sale of share Vintrade Pvt Ltd [25L] & M/s. Diagram Distributors Pvt Ltd [5L] xii. 845294 28.11.2011 -Do- 20,00,000/- M/s.Sixth Sense Sale of share Vintrade Pvt Ltd xiii. 845295 01.12.2011 -Do- 50,00,000/- M/s. Sixth Sense Sale of share Vintrade Pvt Ltd xiv. 845296 05.12.2011 -Do- 4,00,000/- M/s.Sixth Sense Sale of share Vintrade Pvt Ltd xv. 845297 09.12.2011 -Do- 38,00,000/- M/s. Sale of share OntrustDealersPvt Ltd xvi 845298 10.12.2011 -Do- 4,00,000/- M/s.Ontrust Dealers Sale of share Pvt Ltd xvii. 845299 13.12.2011 -Do- 2,00,000/- M/s.SunstarInfrabui Sale of share ld Pvt Ltd xviii. 845300 14.12.2011 -Do- 36,00,000/- M/s. Ontrust Sale of share Dealers Pvt Ltd xix. 680102 17.12.2011 -Do- 25,00,000/- M/s.Ontrust Dealers Sale of share Pvt Ltd xx 680103 21.12.2011 -Do- 35,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxi. 680104 21.12.2011 -Do- 15,00,000/- M/s. Ontrust Sale of share Dealers Pvt Ltd xxii 680105 24.12.2011 -Do- 20,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxiii 880811 27.12.2011 -Do- 39,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxiv. 880812 31.12.2011 -Do- 12,00,000/- M/s. Ontrust Sale of share Dealers Pvt Ltd xxv. 880814 03.01.2012 -Do- 15,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxvi. 880815 06.01.2012 -Do- 9,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxvii. 880816 11.01.201 -Do- 20,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxviii. 880817 14.01.2012 -Do- 34,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxix. 880813 18.01.2012 -Do- 20,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxx. 880818 19.01.2012 -Do- 11,00,000/- M/s. Safari Dealcom Sale of share Pvt Ltd xxxi. 880819 21.01.2012 -Do- 21,00,000/- M/s.SafariDealcomP Sale of share Page 45 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 v t Ltd xxxii. 880820 24.01.2012 -Do- 20,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxxiii. 880821 25.01.2012 -Do- 20,00,000/- M/s.SafariDealcomP Sale of share v t Ltd xxxiv. 880822 01.02.2012 -Do- 43,00,000/- M/s.SafariDealcomP Sale of share v t Ltd Total 760,00,000/-
GRAVITY SALES AGENCY PRIVATE LIMITED Sl No Cheque Date of Name of Amount Name of the Party Source No. Payment Bank, Branch (Rs.) and account No i. 473611 20.04.2011 Punjab National 10,00,000/- M/s. Gold Line Dealcom Sale Bank, New Pvt Ltd of Market Branch Share Kolkata A/c No- 0093002109027 696 ii. 473612 21.04.2011 -Do- 30,00,000/- M/s. Farista Dealers Pvt Sale of Ltd Share iii. 473613 30.04.2011 -Do- 10,00,000/- M/s. Wellknown Sale of Commercial Pvt Ltd Share iv. 473615 02.05.2011 -Do- 13,00,000/- M/s. Bubli Banty Sale of Tradecom Pvt Ltd Share v. 473619 06.05.2011 -Do- 25,00,000/- M/s. Gold Line Dealcom Sale of Pvt Ltd[ Rs.5.00 lac] & Share M/s. Strong Dealers Pvt Ltd [Rs. 20.00 Lac] vi. 473622 06.01.2012 -Do- 9,00,000/- M/s. Krypton Tradelink Sale of Pvt Ltd Share vii. 680051 13.01.2012 -Do- 16,00,000/- M/s. Adeline sales Pvt Ltd Sale of Share Total 1,13,00,000/ - RIDHI SIDHI VANIJYA PRIVATE LIMITED Sl No Cheque No. Date of Name of Amount Name of the Party Source Payment Bank, Branch a nd (Rs.) account No i. RTGS 06.05.2011 Dhan Laxmi Bank, 50,00,000/- M/s.BrightCommotrade Sale of share Sarat Bose Road Pvt Ltd Kolkata, A/c No. and YeriVincom Pvt Ltd 015405300007725 ii. RTGS 07.05.2011 -Do- 11,00,000/- M/s. Bright Commotrade Sale of share Pvt Ltd iii. RTGS 17.05.2011 -Do- 25,00,000/- M/s. Bright Commotrade Sale of share Pvt Ltd iv RTGS 19.05.2011 -Do- 40,00,000/- M/s. Bright Commotrade Sale of share Pvt Ltd v RTGS 18.06.2011 -Do- 30,00,000/- M/s. YeriVincom Pvt Ltd Sale of share vi RTGS 22.06.2011 -Do- 30,00,000/- M/s. YeriVincom Pvt Ltd Sale of share vii RTGS 23.06.2011 -Do- 10,00,000/- M/s. YeriVincom Pvt Ltd Sale of share viii RTGS 29.06.2011 -Do- 25,00,000 M/s. Yeri Vincom Pvt Ltd Sale of share Page 46 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 ix RTGS 02.07.2011 -Do- 12,00,000/- M/s. YeriVincom Pvt Ltd Sale of share x RTGS 07.07.2011 -Do- 1,50,000/- M/s. YeriVincom Pvt Ltd Sale of share xi RTGS 07.07.2011 -Do- 30,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xii RTGS 09.07.2011 -Do- 10,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xiii RTGS 11.07.2011 -Do- 35,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xiv RTGS 12.07.2011 -Do- 21,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xv RTGS 18.07.2011 -Do- 2,50,000/- M/s. YeriVincom Pvt Ltd Sale of share xvi RTGS 22.07.2011 -Do- 19,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xvii RTGS 11.08.2011 -Do- 45,00,000/- M/s. Sale of share Bright Commotrade Pvt Ltd xviii RTGS 12.08.2011 -Do- 20,00,000/- M/s. Sale of share Bright Commotrade Pvt Ltd xix RTGS 13.08.2011 -Do- 4,00,000/- M/s. Sale of share Bright Commotrade Pvt Ltd xx RTGS 18.10.2011 -Do- 30,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxi RTGS 19.10.2011 -Do- 30,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxii RTGS 21.10.2011 -Do- 60,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxiii RTGS 25.10.2011 -Do- 42,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxiv RTGS 27.10.2011 -Do- 14,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxv RTGS 29.10.2011 -Do- 45,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxvi RTGS 01.11.2011 -Do- 45,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxvii RTGS 02.11.2011 -Do- 15,00,000/- M/s. YeriVincom Pvt Ltd Sale of share xxviii RTGS 03.11.2011 -Do- 50,00,000/- M/s. Bright Commotrade Sale of share Pvt Ltd xxix RTGS 05.11.2011 -Do- 30,00,000/- M/s. Bright Commotrade Share Pvt Ltd Application Money xxx RTGS 08.11.2011 -Do- 22,00,000/- M/s. YeriVincom Pvt Ltd Share Application Money xxxi RTGS 09.11.2011 -Do- 6,00,000/- M/s. YeriVincom Pvt Ltd Share Application Money xxxii RTGS 09.11.2011 -Do- 1,00,000/- M/s. YeriVincom Pvt Ltd Sale of share Total 811,00,000/- BHARAT FINANCE AND INDUSTRIES LIMITED SI No Cheque Date oi Payment Name oi Amount Name oi the Party Source No. Bank, Branch and (Rs.) account No i. RTGS 15.02.2012 DCBBank 75,00,000/- M/s. MahashaktiVintrade Sale of share Shakespear Sarani Pvt Ltd Kolkata, A/cNo- 07921900001939 ii. RTGS 18.02.2012 -Do- 62,00,000 M/s. MahashaktiVintrade Sale of share Pvt Ltd [50L] &Fastner ManagementPvtLtd[12L] iii. RTGS 20.02.2012 -Do- 30,00,000/- M/s. Fastner Sale of share Management Pvt Ltd iv. RTGS 21.02.2012 -Do- 50,00,000/- M/s. Krishna Web Tech Sale of share Pvt Ltd v. RTGS 22.02.2012 -Do- 44,00,000/- M/s. Pingle supply Pvt Sale of share Ltd vi. RTGS 23.02.2012 -Do- 35,00,000/- M/s. Krishna Web Tech Sale of share Pvt Ltd Page 47 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 vii. RTGS 24.02.2012 -Do- 50,00,000/- M/s. Shyamli Fashion Sale of share Traders Pvt Ltd viii. RTGS 25.02.2012 -Do- 35,00,000/- M/s. Pingle supply Pvt Sale of share Ltd ix. RTGS 27.02.2012 -Do- 35,00,000/- M/s. Pingle supply Pvt Sale of share Ltd x. RTGS 29.02.2012 -Do- 25,00,000/- M/s. Krishna Web Tech Sale of share Pvt Ltd xi. RTGS 01.03.2012 -Do- 60,00,000/- M/s. Shyamli Fashion Sale of share Traders Pvt Ltd xii. RTGS 02.03.2012 -Do- 28,00,000/- M/s. Pingle supply Pvt Sale of share Ltd xiii. RTGS 03.03.2012 -Do- 45,00,000/- M/s. Pingle supply Pvt Sale of share Ltd xiv. RTGS 09.03.2012 -Do- 10,00,000/- M/s. Krishna Web Tech Sale of share Pvt Ltd xv. RTGS 14.03.2012 -Do- 39,00,000/- M/s. Satyam Plywood Sale of share Merchant Pvt Ltd xvi. RTGS 15.03.2012 -Do- 12,00,000/- M/s. Fastner Sale of share Management Pvt Ltd xvii. RTGS 21.03.2012 -Do- 34,00,000/- M/s. Paras Adhesive Sale of share Traders Pvt Ltd xviii. RTGS 24.03.2012 -Do- 89,00,000/- M/s.NairitTranning Sale of share Centre Pvt Ltd xix. RTGS 29.03.2012 -Do- 20,00,000/- Naina Sale of share xx. RTGS 30.03.2012 -Do- 60,00,000 M/s. Paras Adhesive Sale of share Traders Pvt Ltd Total 838,00,000/- JAI MATADI VANIJYA PRIVATE LIMITED Sl No Cheque Date of Name ofBank, Branch Amount Name of the Party Source No. Payment and accountNo (Rs.) i. RTGS 15.11.2011 Dhan Laxmi Bank, Sarat 47,00,000/- M/s.YeriVincomPvtLtd Sale of share Bose Road Kolkata, A/c No.015405300009155 ii. RTGS 16.11.2011 -Do- 50,00,000/- M/s. Alltime Vincom Pvt Ltd Sale of share iii. RTGS 17.11.2011 -Do- 6,00,000/- M/s.YeriVincom Pvt Ltd Sale of share iv RTGS 17.11.2011 -Do- 25,00,000/- M/s.Alltime Vincom Pvt Ltd Sale of share v. RTGS 21.11.2011 -Do- 40,00,000/- M/s. Alltime Vincom Pvt Ltd Sale of share vi. RTGS 23.11.2011 -Do- 11,00,000/- M/s.YeriVincom Pvt Ltd Sale of share vii. RTGS 24.11.201 -Do- 20,00,000/- M/s. YeriVincomPvtLtd Sale of share viii. RTGS 24.11.2011 -Do- 30,00,000/- M/s.YeriVincomPvtLtd Sale of share ix. RTGS 28.11.2011 -Do- 50,00,000/- M/s.Alltime Vincom Pvt Ltd Sale of share x. RTGS 29.11.2011 -Do- 20,00,000/- M/s. Yeri Vincom Pvt Ltd Sale of share xi. RTGS 01.12.2011 -Do- 31,00,000/- M/s.Yeri Vincom Pvt Ltd Sale of share xii. RTGS 03.12.2011 -Do- 20,00,000/- M/s.Yeri Vincom Pvt Ltd Sale of share xiii. RTGS 05.12.2011 -Do- 15,00,000/- M/s.Yeri Vincom Pvt Ltd Sale of share xiv. RTGS 07.12.2011 -Do- 25,00,000/- M/s.Yeri Vincom Pvt Ltd Sale of share xv. RTGS 08.12.2011 -Do- 25,00,000/- M/s. Linkpoint Merchandise Sale of share Pvt Ltd xvi. RTGS 12.12.2011 -Do- 5,00,000/- M/s. Yeri Vincom Pvt Ltd Sale of share xvii. RTGS 14.12.2011 -Do- 5,00,000/- M/s.Yeri Vincom Pvt Ltd Sale of share xviii. RTGS 20.12.2011 -Do- 40,00,000/- M/s. Oversure Vincom Pvt Ltd Sale of share xix. RTGS 20.12.2011 -Do- 20,00,000/- M/s.Yeri Vincom Pvt Ltd Sale of share xx RTGS 22.12.2011 -Do- 20,00,000/- M/s. Titanic Distributors Pvt Sale of share Ltd xxi. RTGS 24.12.2011 -Do- 35,00,000/- M/s. Smoothly Vintrade Pvt Sale of share Ltd xxii. RTGS 26.12.2011 -Do- 25,00,000/- M/s.YeriVincom Pvt Ltd Sale of share xxiii. RTGS 27.12.2011 -Do- 15,00,000/- M/s.SmoothlyVintrade Pvt Ltd Sale of share xxiv. RTGS 28.12.2011 -Do- 25,00,000/- M/s.Favourite Shoppers Pvt Sale of share Page 48 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Ltd xxv. RTGS 29.12.2011 -Do- 25,00,000/- M/s.Favourite Shoppers Pvt Lt Sale of share d xxvi. RTGS 02.01.2012 -Do- 50,00,000/- M/s.YeriVincom Pvt Ltd & Sale of share M/s.Ratio Vincom Pvt Ltd xxvii. RTGS 03.01.2012 -Do- 45,00,000/- M/s. YeriVincom Pvt Ltd & Sale of share M/s. Subhdhara Tradelink Pvt Ltd xxvii RTGS 24.01.2012 -Do- 50,00,000/- M/s.Subhdhara Tradelink Pvt Sale of share i. Ltd xxix. RTGS 27.01.2012 -Do- 35,00,000/- M/s. Potential ShareApplication Commercial Pvt Ltd Money Rs. 18.60 Lac & 16.40 Lac Sale of Share Total 810,00,000/-
VANA NINE PRIVATE LIMITED(Formerly Known as Gulmohar Vyapaar Pvt Ltd) VANA NINE PRIVATE LIMITED(Formerly Known as Gulmohar VyapaarPvtLtd) Sl No. Cheque No. Date of Name ofBank, Branch Amount Name of the Source Payment and account No (Rs.) Party i. 878357 12.11.2011 Dhanlaxmi Bank, Ideal 34,00,000/- M/s. YeriVincom Sale of share Plaza, Kolkata A/c No. Pvt Ltd 015405300009214 ii. 878358 27.01.2012 -Do- 30,00,000/- M/s.YeriVincomPv Sale of share tLtd iii. NEFT 30.01.2012 -Do- 50,00,000/- M/s. Sale of share ThirdEyeVinimay Pvt Ltd iv. NEFT 01.02.2012 -Do- 15,00,000/- M/s.PotentialCom Sale of share mercial Pvt Ltd v. NEFT 17.02.2012 -Do- 30,00,000/- M/s.Titanic Sale of share Distributors Pvt Ltd vi. NEFT 20.02.2012 -Do- 10,00,000/- M/s. YeriVinocom Sale of share Pvt Ltd [9.5l] & M/s.Titanic Distributors Pvt Ltd [0.50L] Total 169,00,000/ LORD DEALCOM PRIVATE LIMITED Sl No. Cheque Date of Name of Bank, Amount Name of the Party Source No. Payment Branch and account (Rs.) No i. 117621 20.06.2011 ICICI Bank Branch- 35,00,000/- M/s. Ideal Stock Advisory Pvt Sale of share Kolkata, A/c Lt d (Group Company) No.000605018226 ii. 117623 22.06.2011 -Do- 35,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share iii. 117624 22.06.2011 -Do- 25,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share iv. 117622 24.06.2011 -Do- 40,00,000/- M/s. Pecon Dealers Commerce Partly out of sale of Pvt Ltd investment [Rs.31.00 Lac]and Partly unsecured Loan [Rs.9.00La c] v. 117625 25.06.2011 -Do- 30,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share Vi 117628 27.06.2011 -Do- 20,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share Vii 117630 28.06.2011 -Do- 40,00,000/- M/s. Vijay Lakshmi Vanijya Pvt Sale of share Ltd Viii 117632 29.06.2011 -Do- 50,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share ix. 117627 29.06.2011 -Do- 30,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share Page 49 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 x. 117634 02.07.2011 -Do- 25,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xi. 117635 05.07.2011 -Do- 30,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xii. 117637 06.07.2011 -Do- 25,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xiii. 117636 06.07.2011 -Do- 15,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xiv. 117638 12.07.2011 -Do- 13,50,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xv. 117607 14.07.2011 -Do- 20,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xvi. 117608 16.07.2011 -Do- 30,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xvii. 485868 20.07.2011 -Do- 25,00,000/- M/s. Ideal Stock Advisory Pvt Sale of share Ltd xviii. 485859 23.07.2011 -Do- 35,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share xix. 117640 26.07.2011 -Do- 50,00,000/- M/s. Jignesh Trading Pvt Ltd Sale of share [30L] & M/s. SandarvDistributors& Sales Pvt Ltd [20l] xx. 117639 27.07.2011 -Do- 60,00,000/- M/s. Tenet Commerce Pvt Ltd Sale of share xxi. 117641 28.07.2011 -Do- 50,00,000/- M/s. Avon Dealcom Pvt Ltd. Sale of share xxii. 117642 30.07.2011 -Do- 20,00,000/- M/s. SandarvDistribut or & Sale of share Sales Pvt Ltd xxiii. 117643 09.08.2011 -Do- 35,00,000/- M/s. Matalite Financial advisory Sale of share (P) Ltd [5L]& M/s. JigneshTrading Pvt Ltd [30L]
xxiv. 117644 11.08.2011 -Do- 10,00,000/- M/s. Tenet Commerce Pvt Ltd Sale of share xxv. 117647 16.08.2011 -Do- 4,00,000/- M/s. SandarvDistribut or Sales Sale of share Pvt Ltd xxvi. 11012876 19.08.2011 -Do- 25,00,000/- M/s. SandarvDistribut or Sales Sale of share Pvt Ltd xxvii. 11012877 22.08.2011 -Do- 16,00,000/- M/s. SandarvDistribut or Sales Sale of share Pvt Ltd xxviii. 11012878 23.08.2011 -Do- 38,00,000/- M/s. SandarvDistribut or Sales Sale of share Pvt Ltd xxix. 11012881 25.08.2011 -Do- 20,00,000/- M/s. SandarvDistribut or Sales Sale of share Pvt Ltd xxx. 11012880 25.08.2011 -Do- 15,00,000/- M/s. Ideal Stock Advisory Pvt Unsecured Loan Lt d xxxi. 11012884 27.08.2011 -Do- 15,00,000/- M/s. SandarvDistribut or & Share Sales Pvt Ltd application money xxxii. 11012883 29.08.2011 -Do- 39,00,000/- M/s. SandarvDistribu tor & Share Sales Pvt Ltd application money& sale of share xxxiii. 11012887 29.08.2011 -Do- 39,00,000/- M/s. SandarvDistribut or Sales Sale of share Pvt Ltd xxxiv. 11012888 30.08.2011 -Do- 30,00,000/- M/s. SandarvDistribut or Sales Share application Pvt Ltd money xxxv. 11012889 01.09.2011 -Do- 30,00,000/- M/s. Vilasini Sales Pvt Ltd Share application money xxxvi. 11012890 08.09.2011 -Do- 15,00,000/- M/s. SandarvDistribu tor & Share application Sales Pvt Ltd money xxxvii. 11012892 10.09.2011 -Do- 30,00,000/- M/s. SandarvDistribut or & Share application Sales Pvt Ltd money xxxviii 1101289 13.09.20 -Do- 30,00,000/- M/s. Jignesh Trading Pvt Ltd Share Application 3 11 money xxxix. 1101289 15.09.20 -Do- 20,00,000/- M/s. Vilasini Sales Pvt Ltd Share application 4 11 money xxxx. 1101289 15.09.20 -Do- 15,00,000/- M/s. Vilasini Sales Pvt Ltd Share 6 11 application money xxxxi. 1101288 17.09.20 -Do- 30,00,000/- M/s. SandarvDistribut or Sales Share 9 11 Pvt Ltd [25L] & application M/s. Metallite Financia l money advisory (P) Ltd [5L] Xxxxii 1101290 19.09.20 -Do- 50,00,000/- M/s. SandarvDistribut or Sales Share 0 11 Pvt Ltd application money received Page 50 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Xxxxii 1101307 22.09.20 -Do- 20,00,000/- M/s. Ideal Share Application i. 6 11 Stock Advisory Pvt Lt d money Received Total 12,29,50,000 /-
MADRID TRADERS PRIVATE LIMITED Sl N Cheq Date of Name of Bank, Amount (Rs.) Name of the Party Source o. ue Payme Branch, and No. nt account No i. RTGS 20.04.2 Dhan Laxmi 30,00,000/- M/s. Bright Saleof 011 Bank, Sarat Commotrade Pvt share Bose Road Ltd Kolkata, A/c No. 0154053000 09193 ii. RTGS 02.01.2012 -Do- 3,00,000/- Mrs. Deepa Bagla Saleof share iii. RTGS 06.02.2012 -Do- 14,50,000/- M/s. Truthful Saleof Tradecom Pvt Ltd share iv RTGS 07.02.2012 -Do- 45,00,000/- M/s. Titanic SaleOfshare Distributors Pvt Ltd v RTGS 08.02.2012 -Do- 31,00,000/- M/s. Titanic Saleof Distributors Pvt Share Ltd vi RTGS 10.02.2012 -Do- 35,00,000/- M/s. YeriVinco Saleof m Pvt Ltd Share vii RTGS 13.02.2012 -Do- 35,00,000/- M/s. Titanic Saleof Distributors Pvt Share Ltd viii RTGS 13.02.2012 -Do- 35,00,000/- M/s. Titanic Saleof Distributors Pvt Share Ltd ix RTGS 14.02.2012 -Do- 50,00,000/- M/s. Ratio Saleof Vincom Pvt Share Ltd Total 278,50,000/-
Page 51 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 (J). NAMAN HEALTH FOOD INDUSTRIES PVT LTD Sl No. Cheq Date of Name of Amount Name of the Party Source ue Payment Bank, Branch, and (Rs.) No. account No i. RTGS 04.04.2011 Bank of Baroda, 25,00,000/- M/s. Ideal Stock advisory Sale of share Kolkata A/c Pvt Ltd No:059002000004 04 ii. RTGS 06.04.2011 -Do- 15,00,000/- M/s. Pecon Dealers Sale of share Commerces Pvt Ltd iii. RTGS 09.04.2011 -Do- 10,00,000/- M/s.Pecon Dealers Sale of share Commerces Pvt Ltd iv. RTGS 12.04.2011 -Do- 35,00,000/- M/s. Pecon Dealers Sale of share Commerces Pvt Ltd v. RTGS 16.04.2011 -Do- 35,00,000/- M/s.Metallite Financial Sale of share Advisor y (P) Ltd vi. RTGS 16.04.2011 -Do- 45,00,000/- M/s. Pecon Dealers Sale of share Commerces Pvt Ltd vii. RTGS 18.04.2011 -Do- 40,00,000/- M/s. Pecon Dealers Sale of share Commerces Pvt Ltd viii. RTGS 19.04.2011 -Do- 50,00,000/- M/s. Pecon Dealers Sale of share Commerces Pvt Ltd (30L) &M/s.MetalliteFinancial Advisor y (p) Ltd (20L) ix. RTGS 21.04.2011 -Do- 30,00,000/- M/s.MetalliteFinancial Sale of share Advisory (p) Ltd x. RTGS 25.04.2011 -Do- 30,00,000/- M/s.MetalliteFinancial Sale of share Advisory (p) Ltd
Page 52 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 xi. RTGS 25.04.2011 -Do- 35,00,000/- M/s. Pecon Dealers Sale of share Commerce s Pvt Ltd xii. RTGS 26.04.2011 -Do- 35,00,000/- M/s.NarsinghVyapaar Pvt Sale of share Ltd xiii. RTGS 26.04.2011 -Do- 40,00,000/- M/s.NarsinghVyapaar Pvt Sale of Share Ltd [15L] & M/s. Vijay Lakhmi Vanijya Pvt Ltd [25L] xiv. RTGS 28.04.2011 -Do- 20,00,000/- M/s.Pecon Dealers Sale of share Commerces Pvt Ltd xv. RTGS 29.04.2011 -Do- 20,00,000/- M/s.Ideal Stock advisory Sale of share Pvt Ltd xvi RTGS 04.05.2011 -Do- 25,00,000/- M/s.MetalliteFinancial Sale of share Advisory (p) Ltd xvii. RTGS 05.05.2011 -Do- 10,00,000/- M/s.Pecon Dealers Sale of share Commerces Pvt Ltd xviii. RTGS 06.05.2011 -Do- 40,00,000/- M/s. Ideal Stock advisory Sale of share Pvt Ltd[25L] & M/s.Pecon Dealers Commerces Pvt Ltd [15L] xix. RTGS 07.05.2011 -Do- 20,00,000/- M/s.Pecon Dealers Sale of share Commerces Pvt Ltd xx RTGS 09.05.2011 -Do- 50,00,000/- M/s.Ideal Stock advisory Sale of share PvtLtd xxi. RTGS 10.05.2011 -Do- 35,00,000/- M/s.Pecon Dealers Sale of share Commerces Pvt Ltd xxii RTGS 10.05.201 -Do- 25,00,000/- M/s.Pecon Dealers Sale of share 1 Commerces Pvt Ltd xxiii RTGS 11.05.201 -Do- 25,00,000/- M/s.Pecon Dealers Sale of share 1 Commerces Pvt Ltd xxiv. RTGS 11.05.201 -Do- 40,00,000/- M/s.Ideal Stock advisory Sale of share 1 PvtLtd xxv. RTGS 12.05.201 -Do- 50,00,000/- M/s.Ideal Stock advisory Sale of share 1 Pvt Ltd xxvi. RTGS 18.05.201 -Do- 30,00,000/- M/s.Pecon Dealers Sale of share 1 Commerces Pvt Ltd xxvii. RTGS 20.05.201 -Do- 25,00,000/- M/s.MetalliteFinancial Sale of share 1 Advisory (p) Ltd xxviii. RTGS 20.05.201 -Do- 40,00,000/- M/s.MetalliteFinancial Sale of share 1 Advisory (p) Ltd xxix. RTGS 21.05.201 -Do- 50,00,000/- M/s.Pecon Dealers Sale of share 1 Commerces Pvt Ltd xxx. RTGS 24.05.201 -Do- 40,00,000/- M/s.Pecon Dealers Sale of share 1 Commerces Pvt Ltd xxxi. RTGS 25.05.201 -Do- 50,00,000/- M/s.Pecon Dealers Sale of share 1 Commerces Pvt Ltd xxxii. RTGS 26.05.201 -Do- 45,00,000/- M/s.Pecon Dealers Sale of share 1 Commerces Pvt Ltd xxxiii.. RTGS 28.05.201 -Do- 40,00,000/- M/s. Jignesh Trading Pvt Sale of share 1 Ltd xxxiv. RTGS 30.05.201 -Do- 30,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd xxxv. RTGS 30.05.201 -Do- 45,00,000/- M/s. Jignesh Trading Pvt Sale of share 1 Ltd xxxvi. RTGS 03.06.201 -Do- 40,00,000/- M/s. Jignesh Trading Pvt Sale of share 1 Ltd xxxvii. RTGS 06.06.201 -Do- 28,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd xxxviii. RTGS 09.06.201 -Do- 40,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd xxxix RTGS 10.06.201 -Do- 30,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd xxxx. RTGS 11.06.201 -Do- 36,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd Xxxxi. RTGS 13.06.201 -Do- 36,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd xxxxii. RTGS 16.06.201 -Do- 50,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd Page 53 of 102 xxxxiii. RTGS 16.06.201 -Do- 58,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd xxxxiv. RTGS 18.06.201 -Do- 7,00,000/- M/s.Jignesh Trading Pvt Sale of share 1 Ltd
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19
xxxxv. RTGS 26.09.201 -Do- 49,00,000 M/s.Vilasini Sales Pvt Ltd ShareApplication 1 /- money xxxxvi. RTGS 26.09.201 -Do- 49,50,000 M/s.Ideal Stock advisory Pvt ShareApplicati 1 /- Ltd Onmoney xxxxvii. RTGS 26.09.201 -Do- 49,50,000 M/s.Vilasini Sales Pvt Ltd ShareApplication 1 /- money-Rs. 47.12.500 & Sale of share Rs. 2.37.500 xxxxvii RTGS 07.10.201 -Do- 53,50,000 M/s.Vilasini Sales Pvt ShareApplication i. 1 /- Ltd[20L] & M/s.Kartavya Money Distributor Pvt Ltd [33.5L] xxxxix. RTGS 10.10.201 -Do- 30,00,000 M/s.Ideal stock advisory Pvt Share application 1 /- Ltd [18.75L] & money M/s.Vilasini Sales Pvt Ltd [11.25L] xxxxx. RTGS 12.10.201 -Do- 20,00,000 M/s. Vilasini Sales Pvt Ltd Share application 1 /- money Xxxxxi. RTGS 14.10.201 -Do- 45,00,000 M/s. Ideal stock advisory ShareApplication 1 /- Pvt Money Ltd [20 L] & M/s.Vilasini Sales Pvt Ltd [25L] Xxxx RTGS 15.10.20 -Do- 45.00.000/- M/s.Vilasini Share Application xii. 11 Sales Pvt Ltd money xxxxx RTGS 08.12.20 -Do- 10.00.000/- Mrs. Deepa Bagla Refund ofloan& iii. 11 Advances Total 18,56,50,00 0/-
PRABHU DHAN FINANCE PVT LTD SI Cheque Date of Name of Bank, Amount Name of Source No. No. Payment Branch and (Rs.) the Party account No i. 829006 01.12.2011 PNB, New 50,00,000/- M/s. Share Market Branch- Amrit application Kolkata, A/c No. Cement money 0093002109029 Pvt Ltd (a 180 group company) Total 50,00,000/- As directed, the undersigned has made further inquiry u/s. 250(4) of the Act and reported the result of the same as above. The fresh enquiry report u/s. 250(4) of the Act in this case, in addition to the Remand Report already submitted by the then ACIT, Central Circle-2(1), Kolkata dated 30.11.2025, is submitted as above for kind perusal and consideration.”
We note that in the 2nd remand report dated 31.12.2025 contains attachments as Annexure-1 to 7, Which are placed as under:
Annexure No Particulars Page No
Page 54 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Annexure-1 Details of share application money received Page No 38 of CP-1 during the relevant year and allotment made Annexure-2 Copies of Return of allotment for FY Page No 39 to 48 of CP-1 2011-12(AY 2012-13) Annexure-3 Copies of Assessment order, ITR of Sources Page No 49 to 168 of CP-1, of Source companies of Share Application Page No 169 to 346 of CP- money 1.1 and Page No 347 to 526 of CP-1.2 Annexure-4 Copies of Assessment order, CIT(A) order Page No 527 to 795 of CP- and Form 35 of most of the Share Applicant 1.3 companies Annexure-5 Copies of the statements of Directors of Page No 796 to 919 of CP- Share applicant companies, Mr. Pradeep 1.4 Kumar Bagla and Mr. Sunil Kumar Khemka recorded on oath on 03.09.2025 in remand proceedings Annexure-6 Certified copies of the ledger account of all Page No 920 to 931 of CP- the share subscriber companies for the A.Y 1.4 2012-13 Annexure-7 Book value of share for each financial year Page No 932 of CP-1.4 since commencement of business till 31.03.2024
Therefore, it is abundantly clear from the above that in both the remand reports, the AO has recorded a finding that the assessee has furnished all the evidences qua share subscribers proving the identity , creditworthiness of the subscribers who are all group companies. We note that the AO also stated that notices u/s 133(6) of the Act were fully complied by the subscribers with all the evidences as called for. Even the summons u/s 131 of the Act were issued to the Page 55 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 directors of the subscriber companieswhichwere duly complied by them by making personal appearance and their statements were also recordedby the AO in the remand proceedings. Therefore, once the AO has given a finding in the remand reports that the assessee has proved all the ingredients of sectin 68 of the Act, then it is no longer open to the department to contend otherwise. The case of the assessee is squarely covered by the decision of Hon’ble Allahabad High Court in case of Commissioner of Income tax (Central) v B B Sharma ITA Appeal No 730,726,727,729,731 of 2012 order dated 06.03.2017 wherein it has held that where the Assessing Officer himself having accepted the identity of the creditors, the genuineness of the transactions and the creditworthiness of the creditors in his remand report, it is no longer open to the department to contend otherwise.Similarly the case of the assessee find support from the decisions of the Hon'ble Jurisdicitional High Court as discussed hereunder:
In case of Principal Commissioner of Income-tax 1 Kolkata vs. Shipra Enclave (P.) Ltd. , the Hon'ble Calcutta High Court has held as under: “9. We have carefully considered the rival submissions and perused the materials on record. It is a settled legal position that to discharge the initial onus under Section 68, the assessee must establish the identity of the creditor, their creditworthiness, and the genuineness of the transaction. In the instant case, the learned Tribunal conducted a meticulous factual inquiry and recorded a specific finding that the assessee provided a "Cast Iron" documentary foundation. The audited balance sheets of the subscribers demonstrated a substantial net worth, which was far in excess of the amounts invested. 10. Furthermore, we find that the AO's reliance on the non-appearance of the directors is misplaced and is not supported by the statutory scheme where robust documentary evidence is available. As held by this Court in Pr. CIT v. Sreeleathers [2022] 143 taxmann.com 435/448 ITR 332 (Calcutta), the AO is vested with co terminus powers under Section 131 of the Act to compel Page 56 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 attendance. If the AO fails to exercise these powers, he cannot subsequently visit the consequences of such failure upon the assessee. Personal appearance of a director is not a statutory substitute for documented traceability in a corporate assessment, especially when the entities are active taxpayers. 11. Insofar as the reliance on NRA Iron & Steel is concerned, we find the facts of that case to be clearly distinguishable. In that case, the investors were found to be non-existent or "phantom" entities upon field inquiry. In the case before us, the investors are identifiable taxpayers who directly responded to notices u/s 133(6) and confirmed the transactions through banking channels. Equating "traceable investors" with "phantom entities" is a leap in logic that cannot be countenanced. Furthermore, the valuation of shares is a matter of commercial wisdom. Unless the Revenue proves a "live link" showing that the funds originated from the assessee's own coffers, the AO cannot substitute his judgment for that of the marketplace. 12. In view of the aforesaid discussion, we arrive at a definite conclusion that in a corporate assessment, documented traceability (comprising ITR acknowledgments, PAN details, and Bank Statements) through legitimate banking channels carries greater evidentiary weight than the subjective suspicion of an Assessing Officer. The "Test of Human Probability" cannot be invoked as a tool to disregard a verified and audited paper trail. We also conclude that the ratio in NRA Iron & Steel is applicable only to "phantom" or "non-existent" entities found to be non-traceable upon field inquiry. It cannot be extended to active, traceable taxpayers simply because their investment decisions appear commercially improbable to the Revenue. Equating "traceable investors" with "phantom entities" is a leap in logic that cannot be countenanced. Furthermore, the valuation of shares is a matter of commercial wisdom. Unless the Revenue proves a "live link" showing that the funds originated from the assessee's own coffers, the AO cannot substitute his judgment for that of the marketplace. 13. Upon considering the submissions made on either side and perusing the materials on record, we find that the learned Tribunal has conducted a meticulous factual inquiry. The Tribunal has recorded a specific finding that the assessee had provided "Cast Iron" documentary evidence to establish the identity and creditworthiness of the subscribers. The audited balance sheets of these companies reflected a substantial net worth, which was far in excess of the amounts invested in the assessee company. 14. We are convinced that the findings of the learned Tribunal are based on a meticulous factual inquiry. The Revenue has failed to produce any contrary material to disprove the documents filed. It is a settled position that suspicion, however strong, cannot take the place of evidence. We find no perversity in the findings of the learned Tribunal.”
Page 57 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 in case of Principal Commissioner of Income-tax vs. Express Tradelink (P.) Ltd. (supra) Hon’ble Calcutta High Court of Calcutta has held as under: “5. We have carefully perused the records and the findings of the learned Tribunal. It is observed that the respondent-assessee had placed a voluminous "Paper Book" before the authorities, which included PAN details, share application forms, allotment advices, bank statements, ITR acknowledgments, and audited financial statements of all nine corporate subscribers. 6. The law on Section 68 is no longer res integra. Once the assessee offers a reasonable explanation supported by "Cast Iron" documentary evidence of identity and banking flow, the initial statutory onus stands discharged. The burden then shifts squarely to the Revenue. The AO cannot merely brush aside audited balance sheets and PAN details as "paper compliance" without bringing on record contrary evidence to impeach the veracity of such documents. 7. A significant portion of the Revenue's argument rests on the nonappearance of the subscribers' directors. We reiterate our settled view that personal appearance is not a statutory substitute for documented financial traceability. The AO is vested with co-terminus powers under Section 131. If the AO fails to utilize these powers to compel attendance or to seek verification from the creditors' respective Assessing Officers, the Revenue cannot visit the consequences of such investigative failure upon the assessee. Suspicion, however strong, cannot replace evidence. 8. Regarding the Revenue's reliance on the decision of the Hon'ble Supreme Court in PCIT v. NRA Iron & Steel (P) Ltd. [2019] 103 taxmann.com 48/412 ITR 161/262 Taxman 74 (SC), we find the same to be fundamentally misplaced. That case dealt with "phantom" entities where notices were returned unserved. In the present case, the investors are traceable taxpayers who confirmed the transactions through Section 133(6) responses. To equate "traceable investors" with "phantom entities" is a leap in logic that this Court cannot countenance. 9. Furthermore, for the Assessment Year 2009-10, the "Source of Source" doctrine remains inapplicable as the proviso to Section 68, introduced by the Finance Act, 2012, is prospective. The Tribunal noted that the subscribers possessed substantial Net Worth (Reserves and Surplus) far exceeding the investment amounts, thereby satisfying the creditworthiness test. 10. In a corporate assessment, documented traceability through legitimate banking channels carries greater evidentiary weight than the subjective suspicion of an officer. Terms like "money laundering" or "round tripping" should not be used casually without specific, corroborative evidence showing a "live link" that the funds originated from the assessee's own coffers. No such evidence has been brought on record by the Revenue. Page 58 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 11. In the result, we find no perversity in the findings of the learned Tribunal. The findings are based on a sound appreciation of facts and settled legal principles. Consequently, no substantial question of law arises for consideration.” In case of Principal Commissioner Of Income Tax-2, Kolkata V Karni Infraprojects Private Limited (supra) the Hon’ble Calcutta High Court has held as under: “This Court perused the memorandum of appeal, application for stay and the impugned judgment of the Tribunal dated 26.11.2024. The Tribunal held that “The Hon’ble Supreme Court, thus, has held that once the assessee has submitted the documents relating to identity, genuineness of the transaction, and credit-worthiness of the subscribers, then the AO is duty bound conduct to conduct an independent enquiry to verify the same. However, as noted above, the Assessing Officer in this case has not made any independent enquiry to verify the genuineness of the transactions. The assessee having furnished all the details and documents before the Assessing Officer and the Assessing Officer has not pointed out any discrepancy or insufficiency in the said evidences and details furnished by the assessee before him. As observed above, the assessee having discharged initial burden upon him to furnish the evidences to prove the identity and creditworthiness of the share subscribers and genuineness of the transaction, the burden shifted upon the Assessing Officer to examine the evidences furnished and even made independent inquiries and thereafter to state that on what account he was not satisfied with the details and evidences furnished by the assessee and confronting with the same to the assessee. In view of this, even applying the ratio laid down by the Hon’ble Supreme Court in the case of PCIT vs. NRA Iron and Steel Pvt. Ltd. (supra), impugned additions are not warranted in this case.” Heard learned counsel for the appellant/revenue. The materials were all available on the file of the Assessing Officer as well as before the CIT and no question can be raised regarding the genuineness, identity and creditworthiness of the creditors. Hence, the Tribunal has rightly dismissed the appeal filed by the revenue.” The Hon’ble Calcutta High Court in case of PCIT vs Outcome Buildcom P. Ltd. (supra) held as under: “The short question which falls for consideration is whether the addition made by the Assessing Officer under Section 68 of the Act was justifiable. The Commissioner of Income Tax (Appeals) – 7 Kolkata (CITA) set aside the addition made and allowed the assessee’s appeal. The Revenue carried the matter on appeal. We find from the order passed by the learned Tribunal that the facts of the case have been re-appreciated and the learned Tribunal has recorded a finding that the assessee has demonstrated successfully the nature of the sum received during the year and the source of the said sum being received from the share applicants and complete evidence has been Page 59 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 submitted. Further, it has been pointed out that the Assessing Officer has not pointed out any specific error in all the documents nor any discrepancies in the information provided by the assessee. Furthermore, the Tribunal on facts found that the Assessing Officer has not paid any independent enquiry to verify the genuineness of the transaction in spite of the assessee having furnished all details and documents before the Assessing Officer. Thus, we find that the matter is fully factual and no substantial question of law arises for consideration” The Hon’ble High Court of Calcutta in case of PCIT vs Shreen Hire Purchase P Ltd. (ITAT/196/2024 (supra) has held as under: “The short question which falls for consideration is whether the learned Tribunal was right in affirming the order passed by the Commissioner of Income Tax (Appeals)– 7, Kolkata [CIT(A)] dated 2.9.2020 by which addition made under Section 68 of the Act was set aside. We find that the CIT(A) while examining the correctness of the transaction had taken into consideration the parameters which have been laid down in various decisions of the Hon’ble Supreme Court as to how a matter should be examined when the assessing officer proposes to invoke this power under Section 68 of the Act. The broad principles which were laid by the Hon’ble Supreme Court in so far as the credits of the share capital/premium are that the assessee under a legal obligation to prove the genuineness of the transactions, the identity of the creditors and creditworthiness of the investors who should have financial capacity to make the investment in question to the satisfaction of the assessing officer, so as to discharge the primary onus. The second aspect is with regard to the duty of the assessing officer, wherein it was held that the assessing officer is duty bound to investigate the creditworthiness of the creditors/subscribers, verify the identity of the subscribers and ascertain whether the transaction is genuine or there are bogus increase of name lenders. If the enquiry and investigation reveal that the identity of the creditors to be dubious or doubtful or lack of creditworthiness then the genuineness of the transaction would not be established. As noticed above, the CIT(A) had in mind the broad parameters laid down by the Hon’ble Supreme Court and examined the factual position. There were seven subscribers whose creditworthiness was considered by the CIT(A) and in paragraph 4.3 of the order passed by the CIT(A) dated 2nd September 2020, the net worth of the companies have been set out. In paragraph 4.4 the CIT(A) noted that it is evident from the information furnished by the assessee filed out of the seven subscriber companies were subjected to assessment under Section 143(3) of the Act for the assessment year under consideration and in respect of two other assesses their returns were accepted by the assessing officer without any demur. Not stopping with that, the learned Tribunal took note of various decisions of the High Courts and has recorded that the assessing officer has not pointed out that the identity of the share applicants is not proved and/or the subscription made by them to the share capital of the assessee was not genuine and/or the source of Page 60 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 investment was not fully explained to the satisfaction of the assessing officer. The correctness of the factual finding rendered by the CIT(A) was re- examined by the Tribunal and the learned Tribunal also found that the assessing officer has not pointed out as to what enquiry he has made and as to how in his opinion the transactions were held to be not genuine. The only aspect which borne in the mind of the assessing officer was that the directors of the erstwhile subscribers company, though were issued summons, did not personally appear. However, it is not in dispute that the documents were all placed before the assessing officer and no independent enquiry was conducted by the assessing officer to re-examine those documents which were produced. Thus, we find that the matter to be entirely factual and no question of law much less substantial question of law arises for consideration.” The Hon’ble High Court of Calcutta in case of Principal Commissioner of Income Tax, Central-1, Kolkata vs Mallcom VSFT Gloves Pvt. Ltd. (Earlier Known as VSFT Quilts and Pillows Pvt Ltd.) (supra) has held as under: “The Assessing Officer proceeded on the basis that the assessee is a company engaged in investment in shares and trading of shares. This finding is factually incorrect as the assessee is a manufacturing company and they have set up their unit in the Falta Special Economic Zone after obtaining the requisite letter of permission from the Development Commissioner, Falta Special Economic Zone dated May 5,2006. The Development Commissioner of the Falta Special Economic Zone has certified that the assessee has been granted approval for setting up of a unit for manufacture and export of quilts and pillows vide letter of approval dated 5th May, 2006. This fundamental error committed by the Assessing Officer is grave and it has impacted the assessment order in toto. This aspect of the matter has not been duly appreciated by the CIT(A). Furthermore, we find from the assessment order that the assessee had submitted reply to all the queries which have been raised and responded to the notices which were issued. The Assessing Officer records that the replies received from the assessee company are kept on record and the details and contentions of the assessee company were perused and considered. However, the same are not acceptable. No reasons are forthcoming as to why the replies, details and documents produced by the assessee are not acceptable by the Assessing Officer. Furthermore, the Assessing Officer observes that there was compliance on the part of the assessee company but in turn would state that certain facts are not clear. This again is a very vague statement as the Assessing Officer could have very well verified this factual issues which required clarification. Before the learned Tribunal the assessee had produced the necessary documents in the form of a paper book containing 436 pages which discloses the entire details namely, share application forms, source of funds, bank statement, audited accounts, copy of income tax acknowledgment and copy of PAN card. The learned Tribunal has noted that the Department did not make any objection to the three ingredients which are required to be proved while making an addition Page 61 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 under Section 68. Furthermore, the veracity of the documents which were produced by the assessee were never disputed by the Assessing Officer or by the CIT(A). Apart from that, on facts we find that the assessee has not invested any money out of the share capital raised in any other company but the funds so raised have been used to repay its short-term and long-term loans borrowed from various banks and financial institutions. Furthermore, the assessee company has an investment of Rs.10.59 Crore in fixed assets as on 31.3.2012 and inventory of Rs.2.35 Crore for the financial year ending 31.3.2011. The assessee’s export turnover was Rs.2.56 Crore. With regard to lack of business activity during the assessment year under consideration, the assessee has given an explanation stating that they were the sole suppliers to a foreign buyer namely, IKEA for supply of its goods. However, the contract was terminated on account of which the manufacturing unit of the assessee had to be closed down temporarily and thereafter during the assessment year 2014-15 the assessee commenced its business operation and consistently has been showing profit and has been paying income tax. The financial performance and income tax payment of the assessee were also placed before the learned Tribunal commencing from the financial year 2007- 2008 to 2022-2023. Considering all these issues the learned Tribunal, in our view, rightly held that the document details and evidence produced by the assessee are sufficient to fulfill the three criteria as required under section 68 of the Act. Thus, we find the matter to be entirely factual and no question of law much less substantial question of law arises for consideration. The learned advocate appearing for the respondent/assessee placed reliance on the decision of this court in the case of Principal Commissioner of Income Tax-1, Kolkata vs. True Man Consultants Pvt. Ltd., ITAT/203/2024 dated 25.4.2025 wherein this Court affirmed the order passed by the Tribunal on the ground that the assessee therein had satisfied the three conditions required to be satisfied under section 68 of the Act. The learned advocate appearing for the assessee also placed reliance on the decision of this Court in the case of Principal Commissioner of Income Tax-2, Kolkata vs. M/s. Naina Distributors Pvt. Ltd., ITAT/113/2023 dated 28.6.2023 which is also to the same effect as that of the decision in the case of True Man Consultants Pvt. Ltd. In the result, the appeal filed by the revenue is dismissed on the ground that no question of law arises for consideration. The Hon’ble High Court of Calcutta in case of Principal Commissioner Of Income Tax-2, Kolkata Vs Bright Commodeal Private Limited(supra) has held as under: “We have perused the reasons assigned by the learned Tribunal for allowing the assessee’s appeal. It is seen that the assessing officer issued notice under Section 133 (6) of the Act to the investing Page 62 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 companies and both the parties have complied with the said notice and furnished the requisite details. Summons under Section 131 of the Act was issued to the Director of the assessee company to be personally present and also to produce the Directors of the investing company for examination of genuineness of the transaction, identity and creditworthiness of the lenders. The Tribunal noted that the Directors appeared pursuant to the summons but the assessing officer wrongly recorded that the Directors of the assessee company failed to appear in response to the summons issued under 131 of the Act. Furthermore, the Tribunal examined the factual position and noted that the assessee has filed evidences as called for by the assessing officer in respect of the assessee as well as the investing companies. The evidences filed comprised of income tax returns, audited balance sheet, profit and loss account, audited report, bank statement and master data in respect of each of the subscribers. Furthermore, both the parties have submitted their reply pursuant to the notice issued under Section 133(6) of the Act. After noting these facts, the Learned Tribunal held that the assessing officer as well as the CIT(A) did not cause any verification or conduct any enquiry into the evidences which were filed by the assessee and merely harped on non compliance of the summons issued under Section 131 of the Act, which is factually incorrect. Learned Tribunal placed reliance on the decision of the Hon’ble Supreme Court in CIT -Vs- Orissa Corporation Ltd. (1986) 159 ITR 78 (SC) as well as the decision of this Court in Crystal Networks Pvt. Ltd. -Vs- CIT, (353) ITR 171 (Cal). The Tribunal also noted the decision of the Co-ordinate Bench in the case of ITO -Vs- M/S Cygnus Developers India Pvt. Ltd. (ITA/282/Kol/2012) wherein the factual position was also similar to that of the case of the assessee. Thus, we find that the facts have been examined by the Tribunal and the conclusion has been arrived at and therefore, no question of law, much less substantial questions of law, arises for consideration in this appeal.” The Hon’ble High Court of Calcutta in case of Principal Commissioner of Income Tax-1, Kolkata vs True Man Consultants Private Limited (supra) has as under: “On going through the order passed by the Tribunal, more particularly, the discussion which has been made from paragraph 8 of the impugned order, it is seen that the assessee has produced all details pertaining to the share applicants, namely, the Certificate of incorporation of the share applicants, Page 63 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 their networth as per the audited balance sheet of the concerned share applicants and the various documents concerning the share applicants to establish their identities, creditworthiness and genuineness. At the first blush, it appears these documents were produced for the first time before the Tribunal and not before the Assessing Officer. However, on going through the order of assessment, we find that the Assessing Officer has acknowledged the receipt of all the details and documents which have been filed by the assessee pursuant to the notices which were issued by the Assessing Officer. However, curiously enough, the Assessing Officer not a single line stated that the documents filed and explanation received were not acceptable. No reason was forthcoming as to why the documents filed and the explanation received were not acceptable in the opinion of the Assessing Officer. Thus, the order of assessment is a non speaking order. So far as the factual issues are concerned, the learned Tribunal has elaborately taken note of the factual position, analyzed the documents which were produced before the Assessing Officer and also the gist of all the information which were provided by the assessee which for the sake of convenience was placed in a tabulated form. Thus, we find upon perusal of the factual position the learned Tribunal has granted relief to the assessee and we find no questions of law, much less substantial questions of law, arising for consideration” The Hon’ble High Court of Calcutta in case of Principal Commissioner of Income-tax-2 vs. Vish Realty Solutions (P.) Ltd. (supra) has held as under: “5. We have carefully perused the findings recorded by the Assessing Officer and the order passed by the CIT(A) and the conclusion arrived at by the learned Tribunal. The only reason assigned by the Assessing Officer for making addition under Section 68 is that the assessee did not prove the creditworthiness of the share subscribers, genuineness of the transaction and the identity. In this regard, the learned Tribunal has carefully examined the documents which were filed by the assessee in the form of a paper book which contained confirmation letters of all the share subscribers stating that they have given the share application money and the source of such share application money has also been brought on record. Therefore, the Tribunal was justified in coming to a conclusion that the source of shares has been explained by the assessee company. 6. Apart from that, summons under section 131 of the Act was issued to the directors of the assessee company who had appeared before the Assessing Officer and submitted all documents to establish the identity and creditworthiness of the shareholders and the genuineness of the transaction. Apart from that, the Tribunal found that the share applicants have sufficient funds and they have explained the investment and therefore, all the three ingredients stood proved and the onus shifted on the department and the department was not able to dislodge the burden of proof cast upon it. The Page 64 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Tribunal after noting the factual position has referred to the various decisions of the coordinate Bench of the Tribunal and allowed the appeal.” The Hon’ble High Court of Calcutta in case of Principal Commissioner of Income-tax vs. Anmol Stainless (P.) Ltd. (supra) has held as under: “5. The next aspect which was examined by the CIT(A) was whether the assessee was able to establish the identity or creditworthiness of the shareholders which according to the Assessing Officer was not established. After taking note of the submission made by the assessee, more particularly that the investments have been made by the assessee's own sister concern and group companies, the CIT(A) directed the Assessing Officer to verify the claim of the assessee that the investments have been made from the assessee's own sister concern/group companies having mostly common directors and, to treat the appeal filed by the assessee to be allowed on those grounds in case the aforesaid claim is found correct. 6. We find from the order passed by the tribunal that the Assessing Officer has complied with the direction issued by the CIT(A) and has given effect to the order and no adverse finding has been recorded by the Assessing Officer and accordingly the addition was deleted. Therefore, the tribunal would have been well justified in rejecting the revenue's appeal which was filed against the order passed by the CIT(A). Nevertheless the tribunal took upon itself the exercise to examine the factual position probably realising that they are the last fact-finding authority in the hierarchy of authorities provided under the Act. After making an elaborate factual exercise the tribunal examined the creditworthiness of the investors and found that three share applicants were income tax assessees; they were filing return of income; share application form and allotment letter were available on record; the share application money was paid by the account payee cheques; details of bank account belonging to the share applicants and their bank statements were available; the Assessing Officer did not find any amount to be deposited in cash; the share applicants have substantial creditworthiness; the share applicants have common directors; all the directors are income tax assessees and all the three share applicants are sister concern. Thus, the tribunal was satisfied that the creditworthiness and the genuinity of the investments have been sufficiently established by the assessee not only before the CIT(A), but also before the Assessing Officer on the matter being sent back to the Assessing Officer pursuant to the order passed by the CIT(A).” The Hon’ble High Court of Calcutta in case of Principal Commissioner of Income-tax vs. Snowwhite Infrastructure (P.) Ltd. (supra): “5. The share subscriber company was a holding company of the assessee company and both the companies were having common directors and that the share subscribing/holding company was interested in the business of the assessee. The nature of business activity was examined by the tribunal and noted that the assessee company had completed multiple pieces of land in Page 65 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 the State of UP for developing a project in phases. The estimated cost of the project at the relevant point of time was Rs.300 crores. The assessee company had registered its project before the Real Estate Development Authority, U.P. The tribunal noted that the funds of the investing company and its creditworthiness has been duly considered and discussed by the CIT[A] in its order dated 22.7.2020. The entire share subscription amount was received by the tribunal from its holding company, i.e., IBIPL which in turn is promoted by Infinity Infotech Parks Limited and provided funds for execution of the project either by own or through subsidiaries. 6. After discussing the other relevant facts, the Tribunal also took note that the CIT[A] called for a remand report from assessing officer in respect of various details and evidence was submitted by the assessee and thereafter after considering the remand report the CIT[A] passed the order. The Tribunal also took note of the decisions of this Court in the case of Principal Commissioner of Income Tax v. Anmol Stainless (P) Ltd. [2022] 138 taxmann.com 535 (Calcutta) and ultimately dismissed the appeal. 7. Thus, we find that there is no question of law, much less substantial question of law arising for consideration in this appeal and the same is dismissed.” 17. Now to sum up , the AO recorded categorical findings in the two remand reports that assessee has furnshied all the evidences qua subscribers who are all group compies. AO also noted that the notices issued u/s 133(6) of the /act were fully complied by the subscribers by furnsihding all the details and evidences as called for during the remand proceedings. Besides /AO noted that summons issued u/s 131 of the Act to the directors of the subscribers were also complied by making personal appearance and their statements were recorded u/s 131 of the Act during the remand proceedings which have disussed thoroughly in the remand reports extracted above. The AO has also enquired into the first source and also into the second source of the subscribers and has not drawn any adverse inference.Thereforeconsidering the facts of the case in the light of decisions as discussed above and we are of the considered view that the assessee has fully proved the three Page 66 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 ingredients as envisaged by section 68 of the Act. Having perused the two remand reports we are of the cosndiered view that addition has wrongly been confirmed by the ld. CIT(A) and isnot sustainable in the eyes of law. Accordingly, we set aside the appellate order on this issue and direct the AO to delete the addition Rs. 69,76,50,000/- made u/s 68 of the Act.
The appeal of the assessee is allowed.
ITA No 1556/Kol/2026(AY 2012-13) 19. We note that the reassessment orderu/s 147/143(3) dated 24.12.2018was passed by the AO with no addition. But Ld. CIT(A) unnecessarily repeated order which is subject matter of ITSS(A) No 55/Kol/2026 (AY 2012-13). Hence, ITA 1556/Kol/2026 merges with appeal no IT (SS)A 55/Kol/2026 and consequently the CIT(A)’s order becomes infructuous.
IT(SS)A No 54/Kol/2026(AY 2011-12) 20. The only issue raised in grounds of appeal is against the confirmation of addition of Rs. 32,28,20,000/- by ld. CIT(A) as made by the AO in respect of share capital/share premium ny treating the same as unexplained cash credit u/s 68 of the Act.
The fact in brief are that assessee has received share application money of Rs. 32,28,20,000/- from the group companies whose directors are also directors of share applicant companies & whose shareholders are either Page 67 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 directors/shareholders of the assessee company or their relatives or their other group companies. Out of the above share applicants, all the share applicants are common in AY 2011-12.The assessee has furnished details of source and second source during the assessment proceedings with all evidences . Notices u/s 133(6) issued to share applicants were fully replied with all evidences. Details of addition is as per
Sl No Name of Share Applicant Amount (Rs.)
1 Madrid Traders Pvt Ltd 8,06,00,000 2 Naman Health Food Industries Pvt Ltd 3,71,00,000 3 M/s Chordia Tarde Credits Pvt Ltd 16,68,45,000 4 Ridhi Sidhi Vanijya Pvt Ltd 37,00,000
5 M/s Gravity Sales Agency Pvt Ltd 7,45,75,000 Total 36,28,20,000 22. We note that the assessee has furnished details of source and second source during the assessment proceedings which along with replies by share applicants to notices issued u/s 133(6) of the Act which are placed at Paper Book Page No 1 to 915 of paper book volume 1 & 2 of AY 2011-12 ( M/s Chordia Tarde Credits Pvt Ltd&M/s Gravity Sales Agency Pvt Ltd) and in Paper book Volume 4 & 5 for AY 2012-13 from Page No 1158 to 1923 (M/s Madrid Traders Pvt Ltd, M/s Naman Health Food Industries Pvt Ltd& M/s Ridhi Sidhi Vanijya Pvt Ltd).
Page 68 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 23. We note that the then Ld. CIT(A)-20 has also called for remand report for the impugned assessment year and the then Jurisdictional AO i.e. ACIT, Central Circle-2(1),Kolkatahas furnished remand report dated 30.11.2015 before the CIT(A)- 20,Kolkata which is available from page no 952 to 964 of CP - 1.5). We note that the AO has given similar findings in the remand report mentioning that notices issued u/s 133(6) of the Act were replied by the investor comapnies.It was submitted that the directors of the investor companies are the main promoters of the assessee company. The summons u/s 131 of Income Tax Act, were issued to the directors of the above companies and their statements were recorded u/s 131 of the Income Tax Act.
The issue raised in this appeal is similar to one as decided by us in ITA No. IT (SS)A No. 55/KOL/2026 A.Y., 2012-13, wherein we have allowed the appeal of the assessee. Therefore, our decision in the above appeal would, mutatis mutandis , apply to this appeal as well. Consequently, we set aside the order of ld. CIT(A) on this issue and direct the AO to delete the addition of ₹. 32,28,20,000/-. The appeal of the assessee is allowed.
ITA No 1557/Kol/2026(AY 2013-14) 25. The issue raised in ground no. 1 is against the confirmation of addition of Rs. 32,67,50,000/- by ld. CIT(A) as made by the AO in respect of share capital/share premium by treating the same as unexplained cash credit u/s 68 of the Act.
Page 69 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 26. The fact in brief are that assessee has received share application money of Rs. 32,67,50,000/- from the group companies whose directors are also directors of share applicant companies & whose shareholders are either directors/shareholders of the assessee company or their relatives or their other group companies. Out of the above share applicants, first 4 share applicants are common in AY 2011-12 & 2012-13 except M/s Paramount Financial Management Services Pvt Ltd. The assessee has furnished details of source and second source during the assessment proceedings with all evidences . Notices u/s 133(6) to share applicants were fully replied with all evidences which are placed at Page No 1 to 621 of Paper Book in volume 1 &2 for AY 2013-14. The AO treated the money received from the following subscribers as unexplained cash credit u/s 68 and added to the income of the assessee:
Sl No Name of Share Applicant (Amount(Rs.) 1 M/s SMR Business Pvt Ltd 50,00,000 2 M/s Gravity Sales Agency Pvt Ltd 10,00,000 3 M/s Bharat Finance & Industries Ltd 21,87,00,000 4 M/s Gulmohar Vyapaar Pvt Ltd (Now 5,00,000 Known as Vana Nine Pvt. Ltd.) 5 M/s Paramount Financial Management 10,15,50,000 Services Pvt Ltd Total 32,67,50,000 27. The then Ld. CIT(A)-20 has also called for remand report in the appellate proceedings and the then Jurisdictional AO i.e. ACIT, Central Circle-2(1), Kolkata has furnished remand report dated 30.11.2015 before the CIT(A)-20, Kolkata (placed at CP Page No 965 to 974 of CP -1.5). We observe Page 70 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 from the above remand report dated 30.11.2015 , that the directors of the share applicant companies appeared before the AO in response to summons u/s 131 of the Act during remand proceedings and their statements were recrdedand no adverse findings were made by the Ld. AO in the said remand report.
The issue raised in ground no. 1 is similar to one as decided by us in ITA No. IT (SS)A No. 55/KOL/2026 A.Y., 2012-13, wherein we have allowed the appeal of the assessee. Therefore, our decision in above appeal would, mutatis mutandis , apply to ground no. 1 of this appeal as well. Consequently, we set aside the order of ld. CIT(A) on this issue and direct the AO to delete the addition of ₹ . 32,67,50,000/-. The ground no. 1 is allowed.
Ground No 2 to 4
These grounds no. 2 to 4 raised by the assessee are against the order of ld. CIT(A) by not treating the Transport subsidy and VAT and ST remission received from government for setting up new industry in North East as capital receipt and notreducing same while computing income under normal provisions of Act as well as book profit u/s 115JB of the Act.
Ground No Particular Amount (Rs.) 2 Exclusion of Transport Subsidy in computing income 3,06,05,054 under normal provisions as they are capital receipts. 3 Exclusion of Remission of VAT and CST in computing 39,45,459 income under normal provisions as they are capital receipts. Page 71 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 4 Exclusion of Transport Subsidy and Remission of VAT 3,45,50,513 and CST in computing book profit u/s 115JB as they are capital receipts 30. We have heard the rival contentions and perused the materials on records. We note that the assessee for the first time before CIT(A) in the appellate proceedings by way of additional ground raised the issue of subsidy and remission received form setting up industrial plant in a industrially backward area. We note that the assessee company has a set up a cement plant at Umlaper, Elaka Rymbai, Distt. East Jaintia Hills, Meghalay-793200 with production capacity of Clinker (2000 TPD) and cement (1850 TPD). The commercial production commenced on 21.12.2012. This fact is evident from the eligibility certificate under the Meghalaya Industrial & Investment Promotion Policy, 2012 placed at Page no 2 of Subsidy and Exemption Paper Book.The North East Industrial and Investment Promotion Policy (hereinafter referred to as “NEIIPP”), 2007 was introduced for promotion and development of industries in North East. As per the North East Industrial and Investment Promotion Policy (NEIIPP), 2007 dated 01.04.2007 (File No. 10(3)/2007-DBA-II/NER, all new units as well as existing units which go in for substantial expansion, unless otherwise specified and which commence commercial production within 10-year period from the date of notification of NEIIPP, 2007 will be eligible for incentives for a period of ten years from the date of commencement of commercial production. As per the said promotion policy the north Eastern States including Meghalaya are covered. The Page 72 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 said fact is evident from office memorandum dated 01.04.2007 of Ministry of Commerce & Industry. The relevant extract is reproduced below:
Copy of the office memorandum dated 01.04.2007 is placed at Page 3 to 7 of Subsidy and Exemption Paper Book.
As per the aforementioned office memorandum, the Government has approved a package of fiscal incentives and concessions for the North Eastern Region, effective from April 1, 2007. To attract and foster investment and industrial development in the region, the Government of India introduced the North East Industrial & Investment Promotion Policy (NEIIPP), 2007. Under this scheme, the company became eligible for incentives and concessions due to the presence of its cement plant in Meghalaya. Notably, the company is duly registered under the Central Capital Investment Subsidy Scheme, Central Interest Subsidy Scheme, Central Comprehensive Insurance Scheme, and Page 73 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Transport Subsidy Scheme of NEIIPP, 2007 .Copy of the certificate of registration under NEIIPP,2007 dated 25.11.2010 is placed at Page no 8 of Subsidy and Exemption Paper Book.
The assessee was eleible for the following subsidy and remission from the government for setting up new industry in North East under the NEIIPP,2007 :
xii. 100% exemption of excise duty in terms of SL no (v) of Office Memorandum No. 10(3)/2007-DBA- II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007
xiii. Transport subsidyin terms of the Sl No (xiv) ofOffice Memorandum No. 10(3)/2007-DBA-II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007
xiv. Interest Subsidy in terms ofSl No (viii) of Office Memorandum No. 10(3)/2007-DBA-II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007
xv. Insurance subsidy in terms ofSl No (ix) Office Memorandum No. 10(3)/2007-DBA-II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007
We note that the assessee has received Remission of VAT and CST in terms of The Meghalaya Industries (Tax Page 74 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Remission) Scheme 2006 which was brought in by the state government for promoting industries in the state.
The Assessee has also received such subsidies which are exempt in terms of NEIIPP,2007 and Remission of VAT and CST in terms of The Meghalaya Industries (Tax Remission) Scheme 2006. The said receipts were inadvertently treated as Revenue receipts in place of Capital receipts in AY 2013-14 to AY 2015-16. The assessee during the course of appellate proceedings raised the additional grounds for exclusion of said receipts while computing profit under normal provisions as well as for computing book profit u/s 115JB as these amounts were capital receipts and were not chargeable to tax.
During the impugned year, the assessee has received the following amounts as remissions and subsidies from the government under North East Industrial and Investment Promotion Policy (NEIIPP), 2007 & The Meghalaya Industries (Tax Remission) Scheme 2006and claimed same as capital receipt. Details of same are as under:
Particulars Amount Transport subsidy (NEIIPP, 2007 read with Transport 3,06,05,054 Subsidy Scheme,1971) Remission of VAT and CST (The Meghalaya 39,45,459 Industries (Tax Remission) Scheme 2006) Total 3,45,50,513
Page 75 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 36. We note that the Ld. CIT(A) dismissed the claim of the assesseevide its order dated 07.03.2026. In Para 15.1.1 CIT(A) firstly summarised the claim of the assessee to treat the transport subsidy and VAT and CST remission received as capital receipt. Then the Ld. CIT(A) stated that the nature of a subsidy or remission depends on the objective/purpose for which it was given, not on its form, source or the method of payment and relied on some old judgements which have already been distinguished or reversed in later judgements relied upon by the assessee. (Page no 132 to 139 of CIT(A) order) 37. We further note that , in Para 15.1.2 the Ld. CIT(A) relying on aforementioned judgements stating that it is well settled that subsidies received against or in respect of any revenue expenditure are liable to be treated as income and should either be reflected separately as income incidental to the business or be adjusted against the corresponding expenditure so as to reduce the quantum of such expenses and thus rejected the claim of the assessee on Page 139 of CIT(A) order.
Having heard the rival parties , we find merit in the submission of the AR that Transport subsidy under NEIIPP, 2007 read with Transport Subsidy Scheme,1971 and remission of VAT and CST under The Meghalaya Industries (Tax Remission) Scheme 2006 given to assessee to incentivize and stimulate industrial activity in the backward region, to generate employment opportunities and bring about Page 76 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 developments in the N.E. States and was not meant to provide higher profit for the entrepreneur. The same are discussed hereinunder:
i. Transport subsidy (NEIIPP, 2007 read with Transport Susbsidy Scheme,1971)
ii. The Assessee company received a transport subsidy of Rs. 3,06,05,054/-in terms of the Sl No (xiv) ofOffice Memorandum No. 10(3)/2007-DBA-II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007 (Placed at page no 3 to 7 of Subsidy & Exemption Paper Book) read with Transport Subsidy Scheme,1971(Placed at page no 9 to 16 of Subsidy & Exemption Paper Book). The relevant extracts of both the schemes are reproduced below:
Page 77 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19
Thus, from the above it is evident that the assessee has received a transport subsidy in accordance with the provisions outlined in the NEIIPP, 2007. This incentive, provided in the form of financial assistance for transportation costs, was specifically designed to foster industrial development in the North Eastern states, including Meghalaya. The primary objective of introducing this subsidy was not merely to augment the profitability of individual enterprises but to act as a strategic enabler for broader economic growth. By alleviating logistical and transportation challenges faced by Page 78 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 businesses operating in the region, the subsidy aimed to incentivize entrepreneurs to establish new industrial ventures or expand existing ones. In doing so, it sought to generate employment opportunities, attract investment, and strengthen the overall industrial ecosystem of the North Eastern states, thereby reducing regional economic disparities and fostering long-term sustainable development. Hence, the incentive so received under the aforementioned scheme of the government is a Capital Receipt.
The case of the assessee is squarely covered by decision of Hon’ble Gauhati High Court in case of Shiv Shakti Flour Mills (P.) Ltd. vs. Commissioner of Income-tax, Assam [2017] 77 taxmann.com 115 (Gauhati) wherein Transport Subsidy has been held as capital receipt reversing the decision of Hon’ble ITAT Guwahati Bench (Third Member) in case of Assistant Commissioner of Income-tax, Circle Tinsukia v. Shiv Shakti Flour Mills (P.) Ltd. [2014] 44 taxmann.com 135 (Gauhati - Trib.) (TM) relied by the Ld. CIT(A)as under:
“Section 4 of the Income-tax Act, 1961 - Income - Chargeable as (Subsidy) - Assessment year 2010-11 - Whether question of subsidy being revenue or capital receipt need not be answered on basis of accounting procedure followed by assessee but on basis of applicable principle of law - Held, yes - Assessee flour mills, situated in North Eastern State received transport subsidy - Purpose of transport subsidy was to stimulate industrial activity in this backward region and to bring about developments of this area - It was not meant to provide higher profit for existing entrepreneur - Whether subsidy received could not be treated as revenue receipt; it was capital receipt and, thus, not taxable in hands of assessee - Held, yes [Paras 22 and 25] [In favour of assessee]” 41. The Assessee company has received a remission of VAT and CST of Rs. 39,45,459 in terms of The Meghalaya Industries Page 79 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 (Tax Remission) Scheme 2006. The details relating to claim of remission of VAT and CST are placed at Page No 90 to 125 of Subsidy and Exemption Paper Book.This incentive was introduced with the primary aim of fostering industrial growth in the North Eastern States, including Meghalaya. The fundamental objective of this financial relief was not solely to boost the profitability of individual businesses but rather to serve as a strategic measure to stimulate economic development. By providing such incentives, the government sought to encourage entrepreneurs to establish new industrial units and expand existing ones, thereby enhancing industrial activity and contributing to the overall economic progress of the region. The remission of VAT and CST functioned as a key driver in reducing the financial burden on businesses, making it more feasible for them to invest in infrastructure, production, and workforce expansion. This initiative played a crucial role in creating a favourable business environment, attracting investments, and promoting sustainable industrialization, ultimately leading to long-term economic benefits for the state and its residents.Thus, the primary objective of the subsidy in the form of remission of VAT and CST was to promote industrial development in backward areas by encouraging the establishment of new industries. Hence, the incentive so received under the aforementioned scheme of the government is a Capital Receipt.
We note that similar Sales-tax/VAT remission received under Assam Industrial Policy Scheme,2008 and West Bengal
Page 80 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Incentive Scheme, 1993/1999/2000 for setting up new industries in the respective States have been held by Hon’ble High Court and coordinate benches as capital receipt which are discussed below:
• Hon’ble Calcutta High Court in case of Graphite India Ltd. vs. Commissioner of Income-tax [2026] 186 taxmann.com 1199 (Calcutta): “Section 4 of the Income-tax Act, 1961 / Section 4 of the Income-tax Act, 2025 – Firm Assessable as (Subsidy) - Assessee received sales-tax remission under West Bengal Incentive Scheme, 1993, which was granted to encourage expansion and modernization of industrial units located in backward areas and was directly linked to investment in fixed capital - Tribunal treated remission/subsidy as revenue in nature - Whether nature of such subsidy must be determined by applying well-settled "purpose test" - Held, yes - Whether a perusal of West Bengal Incentive Scheme, 1993 clearly demonstrated that remission was intended to induce fresh capital investment and expansion of industrial capacity and it was not a subsidy to assist assessee in carrying on its trade more profitably - Held, yes Whether therefore, Tribunal erred in treating said subsidy as revenue in nature - Held, yes [Paras 6 and 8] [In favour of assessee]” • Hon’ble Calcutta High Court in case of Principal Commissioner of Income- tax vs. Budge Budge Refineries Ltd. [2022] 139 taxmann.com 124 (Calcutta): “Section 4 of the Income-tax Act, 1961 - Income - Capital or revenue receipts (Subsidy) Whether object for which subsidy/assistance is given determines nature of incentive subsidy and form or mechanism through which subsidy is given would be irrelevant - Held, yes Whether where assessee was granted subsidy under West Bengal Incentive Scheme, 2000 and amount of subsidy which was given, was in nature of reimbursement of 75 per cent of sales tax/VAT actually paid by assessee, since object of assistance under subsidy scheme was to enable assessee to set up a new unit and reimbursement of 75 per cent of sales tax paid had been termed as Industrial Promotion Assistance, receipt of subsidy would be a capital receipt - Held, yes [Paras 5 and 6] [In favour of assessee]” Page 81 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 • Sunrise Biscuit Co. (P.) Ltd. vs. Income-tax Officer [2022] 140 taxmann.com 6 (Gauhati - Trib.) “Section 4 of the Income-tax Act, 1961 - Income - Chargeable as (VAT subsidy) Assessment year 2014-15 - Assessee-company had received VAT subsidy from State Govt. under industrial promotion scheme for expansion of its existing industrial unit and claimed it to be capital in nature - Assessing Officer noted that same was given to assessee for carrying on its manufacturing business more profitably and, therefore, same was in nature of revenue receipt and, accordingly, brought it to tax - It was noted that this scheme was not made available to existing units to run their business more profitably but to encourage private industries to set up/substantially expand industrial units and, thus, attract capital investment in State - Whether since object of VAT subsidy was to accelerate industrial development and generation of employment in State, same was capital in nature - Held, yes”
• Hon’ble ITAT Kolkata Bench DCIT, Circle-5(1), Kolkata v M/s Dhunseri Ventures Ltd ITA No.1780/Kol/2025 order dated 16.10.2025
In view of the above facts and judicial pronouncements relied upon, we hold that receipts of Transport subsidy and Remission of VAT and CST amounting to Rs. 3,45,50,513/- being capital receipts is liable to be excluded for computing income under normal provisions of the Act.
Simialrly the subsidies & Remission of VAT and CST for setting up new industry as per policy of government received from government for setting up new industry has to be treated as capital receiptand also to be excluded for computing Book profit u/s 115JB as have been held in the following decisions:
Page 82 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 a) Hon’ble Calcutta High Court in case of Principal Commissioner of Income- tax, Central-2, Kolkata vs. Ankit Metal & Power Ltd. [2019] 109 taxmann.com 93 (Calcutta): “Section 115JB of the Income-tax Act, 1961 - Minimum alternate tax - Payment of tax (Computation of book profit) - Assessment year 2010-11 - Whether where a receipt is not in nature of income, it cannot be included in book profit under section 115JB - Held, yes Whether therefore, interest subsidy and Power subsidy being capital receipts could not form part of book profit under section 115JB - Held, yes” b) Hon’ble Calcutta High Court in case of Principal Commissioner of Income- tax vs. Krishi Rasayan Exports (P.) Ltd. [2022] 145 taxmann.com 191 (Calcutta) “Section 4, read with section 115JB, of the Income-tax Act, 1961 - Income - Capital or revenue receipts (Subsidy and excise refund) - Assessment year 2012-13 - Whether interest subsidy and excise refund should be treated as capital receipt for purpose of computation of book profit under provisions of section 115JB - Held, yes” c) Hon’ble Gauhati High Court in case of Principal Commissioner of Income- tax vs.Greenply Industries Ltd. [2025] 172 taxmann.com 294 (Gauhati) “Section 115JB of the Income-tax Act, 1961 - Minimum alternate tax - Payment Of (Computation of book profit) - Assessment year 2014-15 - Whether excise duty exemption being purely a capital receipt, not chargeable to tax under normal provisions of Act, cannot be included as part of book profit for computing minimum alternate tax as per provisions of section 115JB- Held, yes” d) Hon’ble ITAT, Gauhati in case of Greenlam Industries Limited v ACIT, Circle-Tinsukia, Assam I.T.A. No.: 402/Gau/2019 order dated 19.12.2022 “21. From perusal of the above judgments and decisions and more specifically from the recent decision of this Tribunal in assessee’s parent company case of Greenply Industries Limited (supra), we find that they are squarely applicable on the issues raised in the instant appeal and there remains no dispute that the alleged sum of excise duty exemption received by the assessee is a capital receipt not chargeable to tax and it is to be Page 83 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 excluded for the purpose of computing book profit u/s 115JB of the Act. We also find that this Tribunal after considering the settled judicial pronouncements has clearly held that the excise duty exemption received by the assessee during the course of running manufacturing units in the backward areas, notified by the Ministry of Commerce and Industry are to be considered as capital receipt not chargeable to tax and they also need to be excluded from the book profit for the purpose of computing MAT u/s 115JB of the Act. 22. We, therefore, respectfully following the settled judicial precedence, are of the considered view that the alleged sum of excise duty exemption of Rs. 19,25,59,001/- is a capital receipt not chargeable to tax and even for the purpose of computing MAT u/s 115JB of the Act the said sum needs to be reduced from the net profit shown in the audited profit and loss account. Therefore, ground nos. 2 & 3 raised by the assessee are allowed.”
e) Hon’ble ITAT Gauhati Bench in case of Sunrise Biscuit Co. (P.) Ltd. vs. Income-tax Officer [2022] 140 taxmann.com 6 (Gauhati - Trib.)
“Section 115JB of the Income-tax Act, 1961 - Minimum alternate tax - Payment of (VAT subsidy) - Assessment year 2014-15 - Whether VAT subsidy received by assessee under State industrial scheme being capital in nature was liable to be excluded from computation of book profit under section 115JB - Held, yes” f) Hon’ble ITAT Mumbai Bench in case of Assistant Commissioner of Income- tax, Mumbai vs. Shree Pushkar Chemicals & Fertilizers Ltd. [2021] 133 taxmann.com 371 (Mumbai - Trib.)/[2022] 192 ITD 618 (Mumbai - Trib.)[09-08-2021] “Section 115JB of the Income-tax Act, 1961 - Minimum alternate tax - Payment of tax (Computation of book profit) - Assessment year 2015-16 - Whether when a receipt is not in nature of income, it cannot form part of taxable profit - Held, yes - Whether therefore, where fertilizer subsidy received by assessee was treated as capital receipt and not chargeable to tax, it had to be excluded from computing book profit under section 115JB - Held, yes [Para 15]”
Page 84 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 g) Hon’ble ITAT, Kolkata in case of Sicpa India (P.) Ltd. vs. Deputy Commissioner of Income-tax, Circle-8, Kolkata [2017] 80 taxmann.com 87 (Kolkata - Trib.)/[2017] 186 TTJ 289 (Kolkata - Trib.)[22-03-2017] “Section 115JB of the Income-tax Act, 1961 - Minimum alternate tax (Computation of book profit) - Assessment year 2007-08 - Whether excise duty subsidy and interest subsidy received by assessee in respect of undertaking situated in notified area of Sikkim could not be regarded as income for purpose of book profit even though same was credited in profit and loss account - Held, yes” 45. Considering the facts of the case and the ratio laid in the above decisions , we set aside the order of ld. CIT(A) on this issue and direct the AO to exclude the transport subsidy of ₹ 3,06,05,054/- and remission of VAT and CST of ₹ 39,45,459/- while computing the income under the normal provisions of the Act as well as while computing the MAT u/s 115JB of the Act. Consequently, the ground nos. 2 to 4 are allowed.
In the result the appeal of the assessee is allowed.
ITA No 1558/Kol/2026(AY 2015-16) 47. The issue raised in ground no. 1 is against the confirmation of addition of Rs. 16,27,75,000/- by ld. CIT(A) as made by the AO in respect of share capital/share premium ny treating the same as unexplained cash credit u/s 68 of the Act.
The fact in brief are that assessee has received share application money of Rs. 16,27,75,000/- from the group companies whose directors are also directors of share applicant companies & whose shareholders are either directors/shareholders of the assessee company or their Page 85 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 relatives or their other group companies. The assessee has furnished details of source and second source during the assessment proceedings with all evidences . Notices u/s 133(6) to share applicants were fully replied with all evidences.
Sl No Name of Share Applicant Amount(Rs.) 1 M/s Bharat Finance & Industries Ltd 11,66,25,000 2 M/s Gulmohar Vyapaar Pvt Ltd (Now 79,00,000 Known as Vana Nine Pvt. Ltd.) 3 M/s Prabhudhan Finance Pvt Ltd 3,45,00,000 4 M/s Paramount Financial Management 37,50,000 Services Pvt Ltd Total 16,27,75,000 49. All the above share applicants are common as in AY 2011-12, AY2012-13 & AY 2013-14. The assessee has furnished details of source and second source during the assessment proceedings which along with along with reply to Notice u/s 133(6) by share applicants is placed at Page No 1 to 618 of Paper Book in volume 1 & 2 for AY 2015-16.
The issue raised in ground no. 1 is similar to one as decided by us in ITA No. IT (SS)A No. 55/KOL/2026 A.Y., 2012-13, wherein we have allowed the appeal of the assessee. Therefore our decision in above appeal would, mutatis mutandis , apply to ground no. 1 of this appeal as well. Consequently we set aside the order of ld. CIT(A) on this issue and direct the AO to delete the addition of ₹ 16,27,75,000/-. The ground no. 1 is allowed.
The ground no 2 is against the order of ld. CIT(A) confirming the addition of Rs. 75,00,000/- as made by the AO on account Page 86 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 of unsecured loans received during the year u/s 68 of the Act.
The facts in brief are that the appellant has taken unsecured loans of Rs. 75,00,000/- from three loan creditors during the year. During the course assessment proceedings the assessee furnished before the AO all the evidences qua the loan creditors comprising names, addresses, copes of PAN, confirmations, audited financial statements and bank statement etc.The said loans were also duly repaid in the subsequent financial years. The AO without considering the documents furnished by the assessee before him and by relying on inspector report without providing the said inspector report to the assessee and without affording opportunity to cross examine added the unsecured loans to the income of the assessee bytreating the same as unexplained cash credit u/s 68 of the Act.
The Ld. CIT(A) also confirmed the addition without considering the details and documents furnished before him or pointing out any defect in the same.
We have heard the rival contentions and perused the material on records. We note that the assessee furnished all the details and evidences qua loans creditors before the AO as well as before the ld. CIT(A). The documents relating to loan creditors along with details of repayment of loanswere furnished before the Ld. CIT(A) which are available from Page No 619 to 680 of Paper Book Volume-3 for AY 2015-16. In our considered
Page 87 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 opinion if the assessee has furnished all the documents relating to the loans creditors before the AO and AO has not done any enquiry into those evidences and loans are also repaid either in the current fianancialyears or subsequent finanaical years , then no addition can be made u/s 68 of the Act.The case of assessee is squarely covered by the decisions of the Hon’ble Calcutta High court in number of cases namely PCIT-2, Kolkata Vs. Rahul Premier India Agency Private Limited in ITAT/133/2025, IA No.GA/2/2025 vide order dated 05.08.2025, PCIT Vs. M/s Narayan Tradecom Pvt. ltd. in ITAT/76/2025, IA No. GA/1/2025 dated 10.06.2025, PCIT Vs. Alom Extrusions Ltd. ITAT/268/2024, IA no. GA/1/2024, GA/2/2024 dated 17.12.2024, PCIT Vs. M/s Edmond Finvest Pvt. ltd., in ITAT/28/2024, GA/2/2024 dated 26.02.2024, PCIT Vs. Parwati Lakh Udyong, ITAT/2/2024, IA No.GA/1/2024 dated 19.02.2024. In all the above decisions the Hon'ble court has held that where the assessee has filed all the evidences qua the loan creditors before the ld. AO and loans are also repaid then the same cannot be added us/ 68 of the Act. Similarly, the case of assessee is squarely covered by the decision of the Hon’ble Gujarat High Court in the case of Ambe Tradecorp (P.) Ltd., reported in [2022] 145 taxmann.com 27 (Gujarat).Thus in view of the above facts and the ratio laid by the Hon'ble Jurisdicitonal Hingh Court and also by the Hon'ble Gujrat High Court , we are inclined to set aside the appellate order on this issue and direct the AO to delete the addition of Rs. 75,00,000/-. The ground no. 2 is allowed. Page 88 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Ground No. 3 to 7
These grounds are against the order of ld. CIT(A) not treating the subsidy and remissions received from government for setting up new industry in North East as capital receipt and reducing same while computing income under normal provisions of Income Tax Act,1961
Ground Particular Amount (Rs) No 3 Exclusion of Excise duty exemption received in computing 15,29,63,653 income under normal provisions as they are capital receipts. 4 Exclusion of Transport Subsidy in computing income under 14,55,55,317 normal provisions as they are capital receipts. 5 Exclusion of Interest Subsidy in computing income under normal 37,09,613 provisions as they are capital receipts. 6 Exclusion of Insurance subsidy in computing income under 47,90,029 normal provisions as they are capital receipts. 7 Exclusion of Remission of VAT and CST in computing income 4,13,88,388 under normal provisions as they are capital receipts.
During the impugned year, the assessee has received the following amounts as exemptions and subsidies from the government under North East Industrial and Investment Promotion Policy (NEIIPP), 2007 &The Meghalaya Industries (Tax Remission) Scheme 2006 and claimed same as capital receipt.Details of same are as under:
Particulars Amount
100% exemption of excise duty (North East Industrial and 15,29,63,653 Investment Promotion Policy (NEIIPP), 2007) Transport subsidy (NEIIPP, 2007 read with Transport Susbsidy 14,55,55,317 Scheme,1971)
Page 89 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 37,09,613 Interest Subsidy (NEIIPP, 2007) Insurance Subsidy (NEIIPP, 2007) 47,90,029 Remission of VAT and CST (The Meghalaya Industries (Tax 4,13,88,388 Remission) Scheme 2006) 34,84,07,000 Total
The Ld. CIT(A) dismissed the claim of the assessee vide its order dated 12.03.2026. In Para 15.1, Ld. CIT(A) firstly summarised the claim of the assessee to treat the transport subsidy and VAT and CST remission received as capital receipt in his own words. Then the Ld. CIT(A) stated that the nature of a subsidy or remission depends on the objective/purpose for which it is given, not on its form, source or the method of payment and relied on some old judgements which have already been distinguished or reversed in later judgements relied upon by the assessee. (Page no 178 to 184 of CIT(A) order)
Thereafter, in Para 14.2(should be para 15.2) the Ld. CIT(A) relying on aforementioned judgement stating that it is well settled that subsidies received against or in respect of any revenue expenditure are liable to be treated as income and should either be reflected separately as income incidental to the business or be adjusted against the corresponding expenditure so as to reduce the quantum of such expenses and rejected the claim of the assesee.(Page 184 of CIT(A) order).In para 14.3(should be para 15.3) Ld. CIT(A) stated that PCIT vs. Ankit Metals & Power Ltd. (2019) ITA No. 155 of 2018 (Cal.) is not applicable in case of as remission of VAT Page 90 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 and CST, as well as refund of excise duty duly paid or deposited have been held to be in the nature of revenue receipts in view of judgements relied in Para 15.1. Thereafter, he stated that since, all these subsidies are directly connected with the day-to-day business operations of the appellant and relate to expenditure incurred in the course of business, they are in the nature of revenue receipts (Page 184 & 185 of CIT(A) order)
The ld. AR submitted that 100% exemption of excise duty, transport subsidy, interest subsidy and insurance subsidy under NEIIPP, 2007 and remission of VAT and CST under The Meghalaya Industries (Tax Remission) Scheme 2006 given to assessee was to stimulate industrial activity in the backward region, to generate employment opportunities and bring about developments in the N.E. States and was not meant to provide higher profit for the entrepreneur.
We have heard the rival contentions and perused the materials on records. We find the issues of Transport Subsidy of Rs. 14,55,55,317/- and Remission of VAT and CST of Rs. 4,13,88,388/- are similar to ones as decided by us in in AY 2013-14. Accordingly our decision would , mutatis mutanids , apply to these issues as well
So far as 100% Exemption of Excise Duty as per North East Industrial & Investment Promotion Policy (NEIIPP), 2007 is concerned , we note that assessee has received Rs. 15,29,63,653/- in terms of the SLno (v) ofOffice
Page 91 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Memorandum No. 10(3)/2007-DBA-II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007(Placed at page No 3 to 7 of Subsidy and Exemption Paper Book), the manufacturing unit of the assessee situated at Umlaper, Elaka Rymbai, Dist: East Jaintia Hills, Meghalay-793200, are eligible for 100% excise duty exemption in respect of goods manufactured and cleared from the said unit for a period of 10 years from the date of commencement of commercial production. The relevant extracts of the memorandum is reproduced hereunder:
The incentive, in the form of an Excise Duty Exemption, was introduced with the primary objective of promoting industrialization in the North Eastern States, including Meghalaya, while also creating employment opportunities. The Page 92 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 purpose of this financial relief was not merely to enhance the profitability of individual businesses but to serve as a catalyst for economic growth by encouraging entrepreneurs to establish new industrial units or expand existing ones. By providing such incentives, the government aimed to stimulate industrial development, attract investments, and contribute to the overall socio-economic progress of the region. Hence, the incentive so received under the aforementioned scheme of the government is a Capital Receipt.
Further we note that similar Excise Duty Exemption schemes for the states of Jammu & Kashmir (56&57/2002 - CE dated 14-11-2002) and Himachal Pradesh and Uttaranchal(50/2003- CE dated 10-06-2003) have been notified by Central Government/State Government and Excise Duty Exemption received under such schemes were held to be capital receipt in nature. The case of the assessee is squarely covered by the decisions as discussed below:
• Hon’ble Gauhati High Court in case of Principal Commissioner of Income- tax vs. Greenply Industries Ltd. [2025] 172 taxmann.com 294 (Gauhati) has held as under: “Section 4 of the Income-tax Act, 1961 - Income - Chargeable As (Excise duty exemption) Assessment year 2014-15 - Assessee-company received excise duty exemption in terms of policy decision pertaining to new industrial policy and other concessions granted by Ministry of Commerce and Industry, Government of India, for States of Uttaranchal and Himachal Pradesh for local employment generation and use of local resources - In terms of said policy, new industrial units and/or existing industrial units fulfilling conditions set-out, were entitled to 100 per cent outright excise duty exemption for a period of 10 years from date of commencement of Page 93 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 commercial production - Whether in view of judicial precedents, excise duty exemption received by assessee-company under policy decision of Ministry of Commerce and Industry, Government of India, was to be treated as capital receipt and not as revenue receipt - Held, yes” • Hon’ble Supreme Court in case of Commissioner of Income Tax vs. Shree Balaji Alloys [2017] 80 taxmann.com 239 (SC) has held as under: “Section 4 of the Income-tax Act, 1961 - Income - Capital or revenue receipts (Subsidy) Excise refund and interest subsidy received by assessee in pursuance of industrial policy of Government for State would be capital receipt” • Hon’ble Delhi High Court in case of Principal Commissioner of Income-tax vs. Crystal Crop Protection (P.) Ltd. [2022] 143 taxmann.com 61 (Delhi) has held as under: “Section 4, read with section 254, of the Income-tax Act, 1961 - Income - Capital or revenue receipt (Excise duty, subsidy, etc.) - Assessment year 2011-12 - On appeal before Tribunal, assessee raised an additional ground that excise duty, subsidy and interest subsidy received by it from State under 'New Industrial Policy and Other Concessions Scheme' were to be treated as 'capital receipt', however, assessee had wrongly reported same as revenue receipt in return of income - Tribunal admitted said additional ground raised by assessee and allowed excise duty, subsidy and interest subsidy to be treated as capital receipts Revenue contended that Tribunal had wrongly admitted additional ground raised by assessee - It was noted that, pertinently, no submissions were advanced by department on merits of claim of subsidy allowed by Tribunal - Whether no error was committed by Tribunal in admitting said additional ground raised by assessee at stage of appeal because there was no dispute raised by department as to fact that said subsidies given by State to assessee was to be treated as capital receipt - Held, yes “
The Assessee has received interest subsidy of Rs. 37,09,613/- in terms of the Sl No (viii) of Office Memorandum No. 10(3)/2007-DBA-II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007 (Placed at Page 94 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 Page 3 to 7 of Subsidy and Exemption Paper Book). The relevant extracts of the scheme are reproduced below:
We note that the assessee has received an incentive in the form of an interest subsidy on working capital. This subsidy was introduced with the primary objective of fostering industrial development in the North Eastern States, including Meghalaya. The underlying intent of this financial assistance extends beyond merely increasing the profitability of individual businesses. Instead, it serves as a strategic initiative aimed at stimulating economic growth by incentivizing entrepreneurs to set up new industrial ventures or scale up their existing operations. By reducing the financial burden associated with working capital requirements, this subsidy creates a more favorable business environment, encouraging investment, enhancing production capacity, and ultimately contributing to the overall economic prosperity of the region. We note that similar Interest Subsidy under New Industrial Policy and Other Concessions Scheme of Jammu & Kashmir and West Bengal Incentive Scheme, 2000 and Technological Upgradation fund Scheme for setting up new industries/expansion in the respective states has been held to be capital receipt. We accordingly hold that interest subsidy received by the assessee is a capital receipt.The case of the assessee is squarely covered by the following decisions:
Page 95 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 • Hon’ble Calcutta High Court in case of Principal Commissioner of Income-tax, Central-2, Kolkata vs. Ankit Metal & Power Ltd. [2019] 109 taxmann.com 93 (Calcutta) has held as under: “Section 4 of the Income-tax Act, 1961 - Income - Chargeable as (Subsidy) - Assessment year 2010-11 - Whether if an incentive/subsidy is given as a general assistance to assessee to carry on his business or trade, it would be an operational incentive and, thus, a trading receipt in hands of assessee; however if object of subsidy, irrespective of its source, is to enable assessee to acquire new plant and machinery or for further expansion of its manufacturing capacity or for setting up a new unit, entire subsidy must be held to be a capital receipt - Held, yes - Whether interest subsidy and power subsidy granted to assessee by State Government with sole intention of setting up new industry and attracting private investment in State of West Bengal in specified areas which is industrially backward was in nature of non-taxable capital receipt - Held, yes” • Hon’ble Supreme Court in case of Commissioner of Income Tax vs. Shree Balaji Alloys [2017] 80 taxmann.com 239 (SC) has held as under: “Section 4 of the Income-tax Act, 1961 - Income - Capital or revenue receipts (Subsidy) Excise refund and interest subsidy received by assessee in pursuance of industrial policy of Government for State would be capital receipt” • Hon’ble Delhi High Court in case of Principal Commissioner of Income-tax vs. Crystal Crop Protection (P.) Ltd. [2022] 143 taxmann.com 61 (Delhi) has held as under: “Section 4, read with section 254, of the Income-tax Act, 1961 - Income - Capital or revenue receipt (Excise duty, subsidy, etc.) - Assessment year 2011-12 - On appeal before Tribunal, assessee raised an additional ground that excise duty, subsidy and interest subsidy received by it from State under 'New Industrial Policy and Other Concessions Scheme' were to be treated as 'capital receipt', however, assessee had wrongly reported same as revenue receipt in return of income - Tribunal admitted said additional ground raised by assessee and allowed excise duty, subsidy and interest subsidy to be treated as capital receipts Revenue contended that Tribunal had wrongly admitted additional ground raised by assessee - It was noted Page 96 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 that, pertinently, no submissions were advanced by department on merits of claim of subsidy allowed by Tribunal - Whether no error was committed by Tribunal in admitting said additional ground raised by assessee at stage of appeal because there was no dispute raised by department as to fact that said subsidies given by State to assessee was to be treated as capital receipt - Held, yes “ 66. We note that the Assessee has received insurance subsidy of Rs. 47,90,029 in terms of theSl No (ix) Office Memorandum No. 10(3)/2007-DBA-II/NER issued by DIPP, Ministry of Commerce and Industry, GOI dated 01.04.2007(Placed at Page 3 to 7 of Subsidy and Exemption Paper Book). The relevant extracts of the scheme are reproduced below:
The assessee has received an incentive in the form of an insurance subsidy. This subsidy was introduced with the primary objective of fostering industrial development in the North Eastern States, including Meghalaya. The underlying intent of this financial assistance extends beyond merely increasing the profitability of individual businesses. Instead, it serves as a strategic initiative aimed at stimulating economic growth by incentivizing entrepreneurs to set up new industrial ventures or scale up their existing operations. By reducing the financial burden associated with insuring its assets, this subsidy creates a more favourable business environment, encouraging investment, enhancing production capacity, and ultimately contributing to the overall economic prosperity of the region.The same is also a capital receipt in view of the Page 97 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 aforementioned judgements in above para where in it has been held that where subsidies are received for setting up new industries and promoting growth in the region the same are not revenue receipt but are capital receipts.
In view of the above facts and judicial pronouncements relied upon, receipts of Excise duty exemption, Transport subsidy, Interest subsidy, Insurance subsidy and Remission of VAT and CST amounting to Rs. 34,84,07,000/- being capital receipts is liable to be excluded for computing income under normal provisions.Accordingly we set aside the order of ld. CIT(A) on this issue and direct the AO to exclude these receipts from computation of income. The ground nos.3 to 7 are allowed.
The ground no. 8 relates to exclusion of subsidy and exemption/remissions received from government for setting up new industry in North East as same are capital receipt while computing book profit u/s 115JB of the Act.
The assessee has not pressed the ground no. 8 as in the AY 2015-16 as there is book loss and accordingly ground no. 8 is dismissed as not pressed.
ITA No 1559/Kol/2026(AY 2016-17)
The only issue raised in this appeal by the assessee is against the confirmation of addition of Rs. 6,76,50,000/- by ld. CIT(A) as made by the AO in respect of share capital/share premium ny treating the same as unexplained cash credit u/s 68 of the Act. Page 98 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 72. The fact in brief are that assessee has received share application money of Rs.6,76,00,000/- from the group company namely M/s Prabhudhan Finance Pvt Ltdwhose directors are also directors of share applicant companies & whose shareholders are either directors/shareholders of the assessee company or their relatives or their other group companies. The assessee has furnished details of source and second source during the assessment proceedings which is placed at Page No 1 to 248 of Paper Book AY 2016-17. The said share applicant company is common share applicant as of AY 2012-13. The Notice u/s 133(6) to share applicant was fully replied with all evidences.
Since the issue raised in ground no. 1 is similar to one as decided by us in ITA No. IT (SS)A No. 55/KOL/2026 A.Y., 2012-13, wherein we have allowed the appeal of the assessee, therefore our decision above appeal would, mutatis mutandis, apply to ground no. 1 of this appeal as well. Consequently, we set aside the order of ld. CIT(A) on this issue and direct the AO to delete the addition of ₹ 6,76,00,000/-.
The appeal of the assessee is allowed.
ITA No 1564/Kol/2026(AY 2017-18)
The issue raised in this appeal is against the confirmation of addition of Rs. 8,47,50,000/-by ld. CIT(A) as made by the AO in respect of share capital/share premium ny treating the same as unexplained cash credit u/s 68 of the Act. Page 99 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 76. The fact in brief are that assessee has received share application money of Rs.8,47,50,000/-from the group company namely M/s Prabhudhan Finance Pvt Ltdwhose directors are also directors of share applicant companies & whose shareholders are either directors/shareholders of the assessee company or their relatives or their other group companies. The assessee has furnished details of source and second source during the assessment proceedings which is placed at Page No 1 to 248 of Paper Book AY 2016-17. The said share applicant company is common share applicant as of AY 2012-13. The Notice u/s 133(6) to share applicant was fully replied with all evidences.
Since the issue raised in ground no. 1 is similar to one as decided by us in ITA No. IT (SS)A No. 55/KOL/2026 A.Y., 2012-13, wherein we have allowed the appeal of the assessee, therefore our decision above appeal would, mutatis mutandis, apply to ground no. 1 of this appeal as well. Consequently, we set aside the order of ld. CIT(A) on this issue and direct the AO to delete the addition of ₹8,47,50,000/-.
The appeal of the assessee is allowed.
ITA No 2162/Kol/2026(AY 2018-19) 79. The issue raised in this appeal is against the confirmation of addition of Rs. 3,34,00,000/-by ld. CIT(A) as made by the AO in respect of share capital/share premium ny treating the same as unexplained cash credit u/s 68 of the Act. Page 100 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 80. The fact in brief are that assessee has received share application money of Rs.3,34,00,000/- from the group company namely M/s Prabhudhan Finance Pvt Ltd₹ 1,71,50,000/- and M/s AryadeepCommotrade Pvt. Ltd₹ 1,62,50,000/- whose directors are also directors of share applicant companies & whose shareholders are either directors/shareholders of the assessee company or their relatives or their other group companies. M/s Prabhudhan Finance Private Limited is also common share applicant as of AY 2012-13. Hence covered in IT(SS) A 55/Kol/2026(AY 2012-13).
The other share applicant i.e. M/s AryadeepCommotrade Private Limited is regularly assessed to tax with ITO, Ward 1(1),Kolkata and has been subject to scrutiny assessment also, copy of the assessment order for AY 2017-18 dated 14.05.2019 is placed at Page no 975 to 977 of CP-1.5.The assessee has furnished details of source and second source during the assessment proceedings which is placed at Page No 1 to 427 of Paper Book AY 2018-19.The Notice u/s 133(6) to share applicant was fully replied with all evidences.
Since the issue raised in ground no. 1 is similar to one as decided by us in ITA No. IT (SS)A No. 55/KOL/2026 A.Y., 2012-13, wherein we have allowed the appeal of the assessee, therefore our decision above appeal would, mutatis mutandis, apply to ground no. 1 of this appeal as well. Consequently we set aside the order of ld. CIT(A) on this
Page 101 of 102
IT(SS)A No. 54 & 55/K/26 & ITA Nos. 1556, 1557, 1559, 1564, 1558, 2162/K/26 Amrit Cement Limited; A.Y. 2012-13, 2013-14, 2016-17, 2017-18, 2015-16, 2018-19 issue and direct the AO to delete the addition of ₹3,34,00,000/-
The appeal of the assessee is allowed.
In the result, all the appeals of the assessee are allowed.
Order pronounced on 13.10.2026.
Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 13.10.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//
Dy. Registrar Income Tax Appellate Tribunal, Kolkata
Page 102 of 102
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