DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-4(3), KOLKATA, KOLKATA vs. RAJA SHELTERS PRIVATE LIMITED, KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
Per Pradip Kumar Choubey, Judicial Member:
Both the captioned appeals have been preferred by the revenue for the assessment years 2011-12 & 2014-15 against separate orders dated
27.02.2025 and 28.02.2025 of the Commissioner of Income Tax
(Appeals)-27, Kolkata [hereinafter referred to as ‘CIT(A)’] passed u/s 250
of the Income Tax Act (hereinafter referred to as the ‘Act’) respectively.
Since, the issues involved in both the appeals are common and relate to the same assessee, therefore, these appeals have been heard together and are being disposed of by this consolidated order.
ITA
No.1174/Kol/2025 is taken as lead case for narration of facts.
2. ITA No.1174/Kol/2025 – Brief facts of the case are that the assessee had not filed its return of income u/s 139 of the Act. Later, a search and seizure operation u/s 132 of the Act and survey operation u/s 133A of the Act were conducted in respect of 'Goldern Goenka group of assessees’ on 17.03.2015 and on subsequent dates. This group was engaged in the business of financing, trading and investment in ITA Nos.1174 & 1176/Kol/2025
Raja Shelters Pvt. Ltd
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commodities and shares, mutual funds, real estates, and beverages.
Being one of the entities of the said group, the assessee was also covered under this search & seizure operation conducted on 17.03.2015. During the course of search & seizure operation, documents (containing bank details of the assessee) were found and seized from the office premise of the assessee. These documents were inventoried under ID Marks GG/3. Consequent upon the search & seizure operation, 'Golden Goenka group of cases' were centralized to the Central Circle 4(3), Kolkata for post search assessment proceedings. Subsequently, juri iction of this case was transferred to the charge of Central Circle 4(3), Kolkata vide order u/s 127 of the Act dated 16.12.2015 of the Pr. CIT-1, Kolkata.
Thereafter, assessment proceeding u/s 153A of the Act was initiated and notice u/s 153A of the Act was issued for furnishing of return of income.
In response to the said notice, the assessee furnished its return on 26.03.2016 declaring income to Rs.1,170/-. Subsequently. notices u/s 143(2) & u/s 142(1) of the Act were issued on 06.06.2016 and 18.08.2017 respectively. In response to these notices, the AR of the assessee appeared and explained the return of income and also furnished the financial statements of the company for the relevant assessment year. The assessee also furnished the details of shares allotment to the subscriber entities and application money (including share premium) received from those share subscribers.
These submissions/details, as made by the assessee, are perused by the AO and placed on in record. In consideration to the reply and explanation furnished by the assessee, order u/s 153A of the Act was passed by the AO on 29.12.2017 at assessed income of Rs. 60,01,170/-. From the assessment order, it is observed that the AO had made single addition of Rs.60,00,000/- for unexplained cash credit u/s 68 of the Act on account of amount received by the assessee in terms of share application money.
ITA Nos.1174 & 1176/Kol/2025
Raja Shelters Pvt. Ltd
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3. Aggrieved by the said order, the assessee preferred appeal before the ld. CIT(A), wherein, the appeal of the assessee has been allowed on merits.
4. Being aggrieved and dissatisfied, the revenue preferred appeal before us by taking following grounds:
“1. That on the facts and in the circumstances of the case and in law, Ld.
CIT(A)-27, Kolkata has erred in deleting the addition made u/s.68 of the Income-tax Act., 1961 amounting to Rs.60,00,000/- received in the guise of bogus share application money, details of which were obtained from the seized material vide GG/3 seized from the office of the assessee.
2. That on the facts and in the circumstances of the case, the instant case falls under the exception clause (h) of para 3.1 of CBDT's circular No.
5/2024 dated 15.03.2024. 4. That on the facts and in the circumstances of the case and in law, Ld.
CIT(A)-27, Kolkata has erred in deleting the initiation of penalty proceedings u/s. 271(1)(c) of the Income-tax Act, 1961. 5. That the Department craves leave to add, modify or alter any of the ground(s) of appeal and/or adduce additional evidence at any time during the appeal proceedings.”
5. The ld. AR supports the impugned order thereby submitting that during the assessment proceedings, the assessee submitted all the documents to substantiate the transaction and discharged its onus to prove the identity and creditworthiness of the subscribers as well as the genuineness of the transaction and it is important to mention here that the Assessing Officer would not detect any defect or discrepancy in the listed documents. The ld. AR further submits that the Assessing Officer has accepted the share subscription sum by invoking section 68 of the Act only on the basis of suspicion and surmises and conjectures. The ld.
AR further submits that in the present case, notice u/s 131 of the Act was duly complied and the shareholders submitted their replies to the Assessing Officer. He also submits that the ld. CIT(A) has not only discussed the documentary evidence rather discussed the judicial
ITA Nos.1174 & 1176/Kol/2025
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pronouncement and thereafter allowed the appeal of the assessee on merits.
6. Upon hearing the submissions of the counsels of the respective parties and on perusal of the order of the ld. CIT(A) and find that the Assessing Officer has made an addition of Rs.60,00,000/- treating the amount received against share subscription as unexplained cash credit.
Going over the order passed by the ld. CIT(A), we find that in the course of appellate proceedings, the assessee submitted all the requisite information related with the share-subscriber companies before the Assessing Officer and the said information are listed as under:
“6.2.3. In the course of appellate proceeding, the assessee submitted that they had furnished all the requisite information, related with the said share subscriber company, before the AO. Those information are listed as under:-
1
CIN of the Entity
U51909WB1995PTC067453
2
Date of Incorporation
16.01.1995
3
PAN of the Entity
AABCG1411B
4
Address of the Entity
74
BENTICK
STREET
KOLKATA WB 700001
5
Status of the entity in MCA site
ACTIVE compliant
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Paid up
Share
Capital
&
Free
Reserves
Rs. 25,94,43,039
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Investment made in the assessee company
Rs. 60,00,000
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Net worth on 31.03.2010
Rs. 2292 lakhs
9
Sales Turnover for FY 2010-11
Rs. 801.70 lakhs
10
IT return filed
Yes
11
ROC return filed
Yes
1 The assessee has also submitted the following documents before the Assessing Officer: i) Share application form of the subscriber company. ii) Share allotment letter to the subscriber company. iii) ROC form, challan with annexure. iv) Audited accounts of the share applicant company. v) Bank statement of the share applicant company. vi) Source of the source of the share applicant company.
ITA Nos.1174 & 1176/Kol/2025
Raja Shelters Pvt. Ltd
2 We have gone through the order passed by the ld. CIT(A) and it appears to us that to establish identity of subscriber companies, the following documents have also been submitted by the assessee: i) Certificate of Incorporation issued by the