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Income Tax Appellate Tribunal, “C” BENCH, KOLKATA
This is an appeal preferred by the Revenue against the order of the ld. Commissioner of Income-tax (Appeals), Kolkata-21 (hereinafter referred to as the “Ld. CIT(A)”] dated 24.08.2023for the AY 2012-13.
The only issue raised by the Revenue is against the order of the ld. CIT (A) deleting the addition of ₹10,62,50,000/- as made by the ld. AO on account of share capital and share premium raised during the year.
The facts in brief are that the assessee filed its return of income on 02.11.2012, declaring total income as nil. The case of the assessee was selected for scrutiny and the statutory notices were duly served upon to the assessee. The ld. AO during the course of assessment
Aggrieved, assessee preferred an appeal before the ld. CIT (A). The ld. CIT (A) in the appellate proceedings, allowed the appeal of the assessee after taking into consideration the written submissions and arguments of the assessee. The assessee also filed before the ld. CIT (A) some additional evidences to which the remand was called from the AO and the remand report were also furnished before the appellate authority by the AO.The ld. CIT (A) found that the share subscribers were all related parties and they were engaging in real estate projects. The ld. CIT (A) recorded the findings of fact that all these were group concerns which have huge income and net worth. According to their returns of income, the ld. CIT (A) found that hey have the capacity and thus discussed the source of source at page no.15 of the appellate order. The ld. CIT (A) found that the assessments were framed in the case of share subscribers also u/s 143(3) of the Act and even the summons were complied with and the
We have heard the rival contentions and perused the materials available on record. We find that the assessee is a company engaged in the business of Hotel in Kolkata. In order to fund the said project, the assessee raised the share capital/ share premium from the related entities, which were group entities, comprising group companies as well as other related entities.
“Therevenue has raised the following substantial questions of law for consideration:- (a) Whether on the facts and circumstances of the case and in law, the Learned Income Tax Appellate Tribunal has committed substantial error by not considering the addition made by the Assessing Officer on account of share capital / share premium of Rs.3,00,00,000/- made u/s 68 of the IT Act, 1961, without considering the fact that there is accommodation entry in the instant case? (b) Whether on the facts and circumstances of the case and in law, the Learned Income Tax Appellate Tribunal has committed error by not considering the judgment of the Hon’ble Division Bench, High Court at Calcutta dated April 23, 2024 in ITAT/67/2024 (IA No: GA/2/2024) in the case of The Principal Commissioner of Income Tax, (Central)-2, Kolkata Vs. M/s BST Infratech Limited? We have heard Ms. Smita Das De, learned senior standing counsel assisted by Mr. Prithu Dudheria, learned advocate for the appellant. The revenue was in appeal before the Learned Tribunal challenging the order passed by the Commissioner of Income Tax (Appeals), NFAC, Delhi dated 25th March 2023 by which the assessee’s appeal was allowed and the addition made under Section 68 of the Act was set aside. The Learned Tribunal has extensively quoted the factual findings recorded by the CIT(A) upon appreciation of the documents which were placed by the assessee as well as the group companies. The Tribunal after referring to the finding recorded by CIT(A) has on its part re- examined the factual position and found that no case has been made out for addition under Section 68 of the Act. Thus we find there is no substantial question of law arising for consideration in this appeal.”
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 27.11.2024.