DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), CHENNAI, CHENNAI vs. DEVANAYAGAM FINANCE PRIVATE LIMITED, KOLKATA
आयकर अपीलीय अिधकरण, ‘ए’ ायपीठ, चेई।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘A’ BENCH: CHENNAI
ी एबी टी. वक , ाियक सद! एवं ी जगदीश, लेखा सद! के सम(
BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No.634/Chny/2025
िनधा:रण वष: /Assessment Year: 2014-15
The Dy. Commissioner of Income
Tax,
Central Circle-2(1),
3/2, Ground Floor,
Marcus Square,
Kolkata – 700 007. [PAN: AABCD 0465C]
(अपीलाथ/Appellant)
( यथ/Respondent)
अपीलाथ की ओर से/ Assessee by :
Shri Y. Sridhar, F.C.A HIथ की ओर से /Revenue by :
Ms. E. Pavuna Sundari, CIT
सुनवाई की तारीख/Date of Hearing
:
02.07.2025
घोषणा की तारीख /Date of Pronouncement
:
28.08.2025
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2014-15 arises out of the order of Learned Commissioner of Income Tax, Appeal, Chennai-19 [hereinafter “CIT(A)”] dated 16.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) r.w.s 153A of the Income-tax Act,1961 (hereinafter “the Act”) on 29.03.2022. Devanayagam Finance Pvt. Ltd.
:- 2 -:
The ground of appeal raised by the Revenue are as under:
“1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous.
The Ld. CIT (A) erred in deleting addition of Rs.1,43,75, 250/ Rs. 1,42,68, 825/- & Rs.1,37,00, 250/- made merely for quoting Section 56(2) (x)(c) is erroneous for this case & the Ld. CIT(A) has erroneously relied on relied on technicalities rather than substance, failing to recognize that the transaction was a colorable devise designed to introduce unaccounted income into the books.
3 The Ld.CIT (4) failed to observe that prior to AY 2018-19, similar provisions u/s 56(2) (viia) of the Income Tax Act, 196l were applicable to cases of similar facts.
The Ld. CIT (A) erred in observing that there was no incriminating evidence found during search in the case of the assessee as during the course of search, it was revealed that the KAG India Pvt. Lid routed its unaccounted income into its company as share capital through direct investments by shelI companies based in Kolkata and by capital introduction via M/s. Devanayagam Finance Pvt. Ltd and M/s. Bholenath Merchants Pvt Ltd. M/s Devanayagam Finance Pvt. Ltd is private limited company and registered with