MALPANI & MUNDHRA PLASTO MATS PVT. LTD.,HOWRAH vs. I.T.O.,WARD-13(3), KOLKATA

order

: December 07th, 2022 ORDER

Per Manish Borad, Accountant Member:

I.T.A. No.: 2059/Kol/2019 Assessment Year: 2012-13 Malpani & Mundhra Plasto Mats Pvt. Ltd. 2. The assessee is in appeal before this Tribunal raising the following grounds: “

1) That the Ld. CIT (Appeals) was grossly erred in confirming the addition of Rs. 10,00,000/- on account of Share Application Money received. 2) That the action of Ld. CIT (Appeals) in confirming the addition of Rs. 10,00,000/- on account of Share Application Money received is highly arbitrary, unjustified and unwarranted to the facts of the case when all requisite documents were submitted to prove the transaction. 3) We may add, alter, amend, modify or withdraw any grounds of appeal on or before the date of hearing.”

3. The assessee has raised the following additional ground of appeal: “1. For that the ITO, Ward 13(3), who completed the assessment of the assessee, lacked jurisdiction over the assessee. As such, the entire assessment made by the A.O. is vitiated in law.”

4. At the outset, the assessee did not press additional ground of appeal. Therefore, the same is dismissed as not pressed.

5. Now, I am left with sole grievance of the assessee that ld. CIT(A) erred in confirming the addition of Rs. 10,00,000/- on account of unexplained share application money received.

6. I have heard rival contentions and perused the records placed before me. I observe that the assessee is a private limited company and NIL income was declared in the return of income filed for AY 2012-13. Case selected for scrutiny through CASS followed by serving of notices u/s 143(2) & 142(1) of the Act. During the scrutiny proceedings ld. AO noticed that the assessee has received share capital including the share premium to which nine companies subscribed. Ld. AO accepted all share capital received I.T.A. No.: 2059/Kol/2019 Assessment Year: 2012-13 Malpani & Mundhra Plasto Mats Pvt. Ltd. from eight companies except Rs. 10,00,000/- received from Linkup Financial Consultants Pvt. Ltd. And made the addition thereafter. The assessee challenged this action of ld. AO before ld. CIT(A) but failed to succeed.

7. Before me, the assessee has filed various documentary details including the reply filed by Linkup Financial Consultants Pvt. Ltd. to ld. AO on 17.03.2015, copies of income tax return, financial accounts and confirmation of account to explain the high premium. It was also submitted by ld. Counsel for the assessee that the premium was decided by the Board of Directors and was well within the provisions laid down under the Companies Act. I further find that the assessee has successfully discharged the primary onus casted upon it by filing all necessary details including the income tax returns and audited balance sheet of the assessee company, the directors of the assessee company have appeared before ld. AO and given a statement on oath on 26.03.2015 and gave complete details of the transaction, the shareholder company i.e. Linkup Financial Consultants Pvt. Ltd. has also accepted the said transaction of having applied for equity shares, in the reply directly filed before ld. AO along with all the financial statements and income tax returns, copy of allotment letter was also filed. I also find that ld. AO has not pointed out any defect in all these documents and thus, the assessee has successfully explained the alleged transaction of Rs. 10,00,000/-.

nos. 1 & 2 raised by the assessee are allowed.

9. Ground no. 3 is general in nature which needs no adjudication.

10. In the result, the appeal filed by the assessee is partly allowed. Kolkata, the 07th December, 2022. Sd/- [Manish Borad] Accountant Member Dated: 07.12.2022 Bidhan (P.S.) Copy of the order forwarded to:

1. Malpani & Mundhra Plasto Mats Pvt. Ltd., 12, Hardutt Rai Chamaria Road, 4th Floor, R.No. 4CD, Howrah-711 101.

2. ITO, Ward-13(3), Kolkata. 3. CIT(A)-5, Kolkata. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata.