WISE PROPERTIES PVT. LTD.,KOLKATA vs. I.T.O., WARD - 1(1), KOLKATA

In the appeal of the assessee has challenged the addition of ₹3,11,45,000/- made by the ld. AO u/s 68 of the Act, being share capital / share premium.

Facts in brief are that the assessee filed the return of income on 22.08.2024, showing total income of ₹5,160/-. The case of the Wise Properties Pvt. Ltd.; A.Y. 2012-13 assessee was selected for scrutiny through Computer Assisted Scrutiny Selection (CASS) and statutory notices were duly served to the assessee u/s 143(2) and 142(1) of the Act. During the course of assessment proceedings, the ld. AO observed that the assessee has receipt of fresh subscription to its share capital and share premium of ₹3,11,45,000/-. During the assessment proceedings the assessee filed evidences before the ld. AO and also produced books of accounts to support its claim of receipt of share capital and share premium. The ld. AO also issued summon u/s 131 of the Act to the subscribers which were not complied with and finally the ld. AO came to the conclusion that the identity and creditworthiness of the subscribers and genuineness of the transactions were not proved and thus added the same to the income of the assessee u/s 68 of the Act as unexplained cash credit. Aggrieved assessee preferred the appeal before the ld. CIT (A) .

In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. AO by holding that the assessee failed to prove the identity, creditworthiness and genuineness of the subscribers.

After hearing the rival contentions and perused the records available on record ,we find that the amount of share capital / share premium of ₹3,11,45,000/-, which was stated to be received by the assessee during the financial year is a wrong finding of facts by the both the authorities below, which have occurred due to overlooking of the facts available on records furnished by the assessee before both the authorities. We note that out of the said amount assessee has received ₹2,37,45,000/- qua share application money pending allotment in the F.Y. 2010-11 from six parties namely; Abhijeet Projects Ltd. ₹25,00,000/-, Long Life Wise Properties Pvt. Ltd.; A.Y. 2012-13 Vanijya Private Ltd. 74,00,000/-, Arission Infrastructure P. Ltd. of ₹34,00,000/-, Mudrika Projects Pvt. Ltd of ₹1,03,50,000/-, Network Pvt. Ld. 1,25,000/- & Monitor Tie-up Pvt. Ltd of ₹73,70,000/- meaning thereby that the said money was not received in the current financial year and accordingly, the provisions of Section 68 of the Act could not be invoked to the money receipt in the earlier financial year. Therefore, we are inclined to delete the addition to the tune of ₹₹2,37,45,000/-.

So far as, balance of share share capital and share is concerned ₹74.00 lacs is concerned we note that the same was received from Long Life Vanijya Private Limited during the year. We note that the said company has been assessed u/s 143(3) of the Act, vide order dated 14.07.2014 for A.Y. 2012-13, wherein the return of income was duly accepted after examining the books of accounts and the copy of the assessment order is placed at page nos.11 to 14 of the Paper Book. Besides, the assessee has filed all the evidences of the subscriber before authorities below and ld. CIT

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