RAVILOCHANAH MERCANTILE PRIVATE LIMITED,KOLKATA vs. ITO, WARD 4(1), KOLKATA, KOLKATA

The only issue pressed at the time of hearing by the counsel, is against the order of ld. CIT (A) confirming the addition of ₹1,02,00,000/- as made by the ld. AO u/s 68 of the Act by treating the share capital/ share premium as unexplained cash credit.

The facts in brief are that the assessee filed the return of income on 08.09.2012, declaring total income at ₹427, which were selected for scrutiny under Computer Assisted Scrutiny Selection (CASS) for the reason of large share premium received by the assessee. Accordingly, the statutory notices along with questionnaire was issued. The

The ld. CIT (A) in the appellate proceedings also dismissed the appeal of the assessee by upholding the order of ld. Assessing Officer.

After hearing the rival contentions and perusing the materials available on record, we find that the assessee has raised the share capital from four share subscribers during the impugned financial year. All four subscribers were subjected to the scrutiny proceedings u/s 143(3) of the Act. Out of the said four share subscribers two subscribers namely M/s Campus Tradelink P. Ltd. and Sonali Suppliers Pvt. Ltd., the entire share capital/ share premium out of which the investments were by subscribers in the assessee company were added to the income of the subscribers and the copies of the assessment orders are available at page no. 2 to 6 and 76 to 77 of the PB. Similarly, in the other two cases namely Khetan Tracon P. Ltd. and Nihon Impex P. Ltd. , the revenue accepted the investments made by these companies in the assessee company by way of share subscription and the assessment orders are available at page no. 43

In the result, the appeal of the assessee is allowed.