ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 4(1), INCOME TAX, KOLKATA vs. APS ENERGY PRIVATE LIMITED, KOLKATA

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ITA 2308/KOL/2024Status: DisposedITAT Kolkata09 May 2025Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI SONJOY SARMA (Judicial Member)4 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Income Tax Appellate Tribunal upheld the Ld. CIT(A)'s decision, confirming that the assessee had discharged its onus by providing complete details of the share applicants. The Tribunal noted that passing the assessment order prior to the due date for compliance with Section 131 summons violated principles of natural justice, and an addition cannot be sustained merely on non-appearance.

What were the facts?

The assessee filed its return for AY 2015-16. The AO made an addition of ₹2,00,45,000/- as unexplained cash credit under Section 68 for share capital/premium from two companies, citing non-compliance with Section 131 summons, which were issued for a date after the assessment order was passed. The Ld. CIT(A) subsequently deleted this addition.

What were the issues?

Whether the Ld. CIT(A) was correct in deleting the addition under Section 68 for unexplained cash credit, considering the assessee provided necessary details and the assessment order was framed prematurely regarding Section 131 summons.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 68,Section 131

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

For Appellant: Shri A.K. Tulsyan, AR
For Respondent: Shri Altaf Hussain, DR
Hearing: 24.02.2025Pronounced: 09.05.2025

This is an appeal preferred by the Revenue against the order of the Commissioner of Income-tax (Appeals) Kolkata-27 (hereinafter referred to as the “Ld. CIT(A)”] dated 08.0.2024 for the AY 2015-16.

2.

The only issue raised by the Revenue is against the deletion of addition of ₹2,00,45,000/- by the ld. CIT (A) as made by the ld. AO on account of unexplained cash credit.

3.

The facts in brief are that the assessee filed the return of income u/s 139(1) of the Act on 09.09.2015, declaring total income of ₹ 23,347/-. The case of the assessee was selected for scrutiny through Computer Assisted Scrutiny Selection (CASS) under limited scrutiny.

4.

In the appellate proceedings, the ld. CIT (A) allowed the appeal of the assessee after taking into account the submissions/ contention of the assessee. While deleting the addition the ld. CIT (A) recorded a finding of facts that though the share subscriber’s M/s Amanat Commercial Pvt. Ltd. and Classical Goods Pvt. Ld. were non responsive to the summons issued u/s 131 of the Act, however, the summons u/s 131 of the Act issued to the share applicants to appear on or before 20.11.2017 but in the meantime the assessment was framed on 13.11.2017, which was not in accordance with the Principle of natural justice. Thereafter, the ld. CIT (A) relied on the various decisions and after discussing the various aspects and facts regarding the the share subscribers, allowed the appeal by observing and holding as under: -

6.

In the result, the appeal of the revenue is dismissed.

Order pronounced in the open court on 09.05.2025.

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