GAJKESHRI STEELS PRIVATE LIMITED,KOLKATA vs. ITO, WARD - 3(3), KOLKATA, KOLKATA

ORDER Per M. Balaganesh:

This appeal filed by the assessee is against the order of Commissioner of Income Tax [Appeals]-6, Kolkata dated 26.12.2017 for the Assessment Year 2012-13 against order of assessment passed u/s 143(3) of the Income Tax Act (hereinafter referred to as the ‘Act’) on 25.03.2015.

Gajkeshri Steels Private Limited Assessment year 2012-13 3. The brief facts of this issue are that the assessee company electronically filed its return of income for the Assessment Year 2012-13 on 30.09.2012 declaring total income of Rs.Nil and claiming carry forward of loss of Rs.43,280/-. In the said return, the share capital figure was mentioned at Rs.11737560/- and share premium figure of Rs.1152118440/-. In order words, the share capital raised during the year was mentioned at Rs.1163756000/-. The assessee later filed a revised return of income on 13.02.2015 declaring total income of Rs.200/-. In the said return, the share capital figure was mentioned at Rs.1,00,000/- which was the same as the opening balance of the share capital. In order words, in the return filed on 13.02.2015, it was indicated that no share capital or share premium was received by the assessee during the year. It was also stated during the course of assessment proceedings that no share capital was received by the assessee company during the year in response to specific questionnaire raised by the ld. A.O u/s 142(1) of the Act to that effect. It was also pleaded before the ld. A.O that the figures mentioned in the original return of income filed on 30.09.2012 were erroneous and does not pertain to the assessee which could be cross-verified from the audited balance sheet by the assessee before the ld. A.O. Accordingly, the assessee pleaded before the ld. A.O to ignore the figures mentioned in the original return filed on 30.09.2012 and consider the revised return filed on 13.02.2015 as a proper return filed by the assessee. The ld. A.O having taken due cognizance of the revised return filed by the assessee on 13.02.2015 by accepting the same and by including the income disclosed therein of Rs.200 in the final determination of the total income of the assessee, however, proceeded to add further the erroneous share capital figure mentioned in the original return of income to the tune of Rs.1163756000/- and added the same to the total income of the assessee as unexplained credit u/s 68 of the Act. Accordingly, in the assessment completed u/s 143(3) of the Act on 25.03.2015, the ld. A.O determined the total income of the assessee of Rs.1163756200/-.

Gajkeshri Steels Private Limited Assessment year 2012-13 4. Against the order passed by the ld. Assessing Officer, appeal was preferred by the assessee company before the ld. CIT(A). The assessee produced the copy of bank statements before the ld. CIT(A) to drive home the point that no capital as alleged by the ld. A.O to the tune of Rs.1163756000/- was received by the assessee company during the year. It was also pleaded that the entire bank statements were also produced before the ld. CIT(A) together with the books of accounts and no sums to the tune of Rs.1163756000/- were found credited in the same and hence provisions of section 68 of the Act cannot be applied in the hands of the assessee company. All these contentions were rejected by the ld. CIT(A) and the action of the ld. A.O was upheld.

Gajkeshri Steels Private Limited Assessment year 2012-13 should be deleted. With these directions, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the Court on 03.04.2019. Sd/- Sd/- [A. T. Varkey] [M. Balaganesh] Judicial Member Accountant Member Dated : .04.2019 [RS, Sr.PS] Copy of the order forwarded to:

1. 1. Appellant – Gajkeshri Steels Private Limited, 12, Waterloo Street, 3rd Floor, Kolkata – 700 069.

2. Revenue – ITO, Ward-3(3), Kolkata. 3. CIT(A)- Kolkata. 4. CIT – , Kolkata. 5. CIT(DR), Kolkata Benches, Kolkata.