ITO WARD-7(1), KOLKATA, KOLKATA vs. LOGIC INFOTECH LIMITED, KOLKATA

Brief facts of the case of the assessee is that the assessee being a company filed its return of income for AY 2013-14 declaring total income at Rs. 75,790/-. The return was processed and notice u/s 148 was issued for reopening the assessment for AY 2013- Assessment Year: 2013-14 Logic Infotech Ltd.

The AO determined the assessed income at Rs. 1,83,00,000/- by passing the order u/s 147 read with Section 144B of the Act as there was an addition made on account of unexplained cash credit u/s 68 of the Act amounting to Rs. 1,83,00,000/-.

Aggrieved and dissatisfied by the said order the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been partly allowed as the addition made u/s 68 of the act has been directed to be deleted.

The Ld. D.R challenges the impugned order thereby submitting that the Ld. CIT(A) erred in deleting the addition of Rs. 1,83,00,000/- despite the fact that the assessee company did not establish satisfactorily the identity of M/s Artillegence Bio- Innovations Ltd. and genuineness of the transaction.

Contrary to that the Ld. A.R supports the impugned order by submitting that the Ld. CIT(A) has elaborately discussed the facts of the case of the assessee and thereafter directed the AO to delete the addition made u/s 68 of the Act. The Ld. Counsel of the assessee submits that during FY 2012-13 the assessee company sold the equity shares of M/s Ispat Sheets Ltd. and M/s Kirti Electro System Pvt. Ltd. to M/s Artillegence Bio- Innovations Ltd. in lieu of which the amount of Rs. 1,62,50,000/- and balance of Rs. 20,50,000/- were refunded to the said party during the year. The Ld. Counsel further submits that the AO has nowhere in his assessment disputed the genuineness of the documentary evidences as submitted by the assessee such as sale bill, copy of bank statement etc. The Ld. Counsel further submits that the issue under consideration relates to the sale of equity shares of M/s Ispat Sheets Ltd. and M/s Kirti Electro System Pvt. Ltd. was duly verified and assessed by the then AO in the AY 2011-12, and no adverse inference was drawn in respect of said investment which was duly reflected in the audited balance sheet of the previous year.

Upon hearing the submission of the Counsel of the respective parties, we have gone through the facts of the present case. It is pertinent to mention here that the purchase and sale transaction are supported and evidenced by the bank statement and Assessment Year: 2013-14 Logic Infotech Ltd. the transaction of purchase of shares were accepted by the AO in earlier year. We find substance in the arguments of the A/R that when the transactions of purchase of shares were accepted by the A.O. in earlier years the same could not be treated as bogus simply on the basis of report of the Investigation wing. It is further important to mention herein that transaction has taken place in the FY 2012-13, it is a fact that the assessee during the impugned assessment year has sold the shares of M/s Ispat Sheets ltd. and M/s Kirti Electro System Pvt. Ltd. to M/s Artillegence Bio-Innovations Ltd. to add an amount of Rs. 1,83,00,000/-. The assessee has purchased the shares of said scrip in earlier years and it was accepted by the AO in the years. It is also important to mention herein that the assessee during the year has sold the investment and has received the amount by banking channel.

Going over the facts of the case as well as the order of Ld. CIT(A), we do not find any infirmity in the impugned order. Accordingly, the appeal of the revenue is here by dismissed.