DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4(3), KOLKATA, KOLKATA vs. SHREE RAMCHANDRA INGOT INDIA PRIVATE LIMITED , KOLKATA

ITA 1556/KOL/2025Status: DisposedITAT Kolkata19 November 2025AY 2021-2229 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found merit in the assessee's contention that a retracted statement cannot be the sole basis for additions. Citing higher court judgments, it was held that such statements lack evidentiary value without corroborative evidence or further investigation.

What were the facts?

The assessee's case was reopened under Section 147 after a search operation. The Assessing Officer (AO) treated the sale of investments by amalgamating companies as unexplained cash credit, making a significant addition. The CIT(A) partly allowed the appeal, reducing the addition by estimating business profit on the sale consideration.

What were the issues?

Whether additions made solely on the basis of a retracted statement recorded during search are sustainable. Whether the sale of investments by amalgamating companies can be treated as unexplained cash credit.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 115JB,Section 132,Section 148,Section 131,Section 68

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Cases cited in this judgment(5)Show list

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Heard together (2 matters)

ITA No.1368/Kol/2025
ITA No.1551/Kol/2025

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
Shree Ramchandra Ingot India Pvt Ltd.,

PER: RAJESH KUMAR, AM

These are cross appeals filed by the assessee as well as revenue against the separate orders of Id. CIT(A), Kolkata-27 dated 14.4.2025 for the assessment years 2017-18 to 2021-22 and dated 13.4.2025 for the assessment year 2016-17, respectively.

2.

Since the facts in all these appeals are identical and common and they relate to the same assessee, therefore they are being disposed off together for the sake of convenience and brevity. First, we take up the appeal of the assessee in ITA No.1368/Kol/2025 for A.Y. 2016-17 and the appeal of the revenue in ITA No.1551/Kol/2025 for A.Y. 2016-17 for adjudication.

ITA_No.1368/Kol/2025 for A.Y. 2016-17 -Assessee's appeal and ITA No.1551/Kol/2025 -Revenue's appeal

3.

The assessee in its appeal has raised the following grounds:

“1. For that the Commissioner of Income Tax (Appeals), Kolkata 27. ['CIT-(A)], erred on facts and in law in partly allowing the appeal filed by the appellant, vide order passed Act), dated 13-04-2025

2.

that the CIT-(A) erred in confirming the additions to the extent of Rs 36,67,500/as against addition of Rs 7,33,50,000/ made by the Deputy Commis

The order continues below.

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