M/S. AIC IRON INDUSTRIES PVT. LTD.,KOLKATA vs. DCIT, CIRCLE-3(1), KOLKATA, KOLKATA

This appeal filed by the assessee against the order dated 28.02.2017 passed by CIT(A)-9, Kolkata for AY 2012-13.

The Ld. AR submits the issue involved in the appeal is introduction of share capital by the subscriber companies in assessee’s company and the AO added an amount of Rs.2,65,00,000/- under the head “undisclosed cash credit” u/s 68 of the income Tax Act, 1961 (in short “Act”). The CIT(A) dismissed the grounds of appeal raised before him challenging the order of the AO ex-parte. In these circumstances, the matter may be to remanded to the file of the AO for conducting inquiries independently on each of the share subscribing companies. The ld. DR did not controvert the same.

Heard the rival submissions and perused the material available on record. We find the AO found the assessee received share capital to the extent of Rs.2,65,00,000/- from many companies as detailed in para 4 of the AO’s order. The said amount was added to the total income of the assessee for non-compliance to produce the directors of investing companies for verification of its identity and genuineness & creditworthiness of the transactions. Taking into consideration and the submissions of Ld.AR & DR and in view of the facts and circumstances of the case, we remand the matter to the file of AO to conduct inquiry as set out herein under:-

In view of the above, Grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.