DURGAMATA COOMERCIAL PVT. LTD. ,KOLKATA vs. ITO,WD-9(1), KOLKATA. , KOLKATA

The brief facts of the case are that the assessee filed its return of income for the AY 2014-15 by declaring total income of Rs. 1,46,870/-. Subsequently, the case of the assessee was selected for scrutiny under CASS followed by I.T.A. Nos.: 861 & 864/Kol/2023 Assessment Year: 2014-15 Durgamata Commercial Pvt. Ltd. notices issued u/s 143(2) & 142(1) of the Act. However, in response to the notices, none turned up. Therefore, the Assessing Officer (in short ld. 'AO') framed the assessment u/s 144 of the Act. During the scrutiny proceeding, on verification of the books of accounts and comparison of balance sheet for the AY 2013-14 & AY 2014-15 ld. AO noticed that the assessee had invested in unlisted equity shares to the tune of Rs. NIL and Rs. 2,04,50,000/- respectively. From the facts narrated above he transpires that the assessee company had invested an amount of Rs. 2,04,50,000/- in equity during the year under consideration. But it remains as unexplained on the part of the assessee regarding the nature and source of the investment. Accordingly, he added the income of the assessee u/s 69 of the Act by assessing the total income of the assessee at Rs. 2,05,96,870/-. Aggrieved by the order of the AO, the assessee went into appeal before the ld. CIT(A). However, assessee could not succeed there.

Dissatisfied with the appellate order, assessee is now in appeal before this Tribunal raising three grounds of appeal. However, the main grievance of the assessee is regarding ld. CIT(A) confirming the addition made by the AO u/s 69 of the Act in respect of alleged undisclosed investment in the balance sheet amounting to Rs. 2,04,50,000/- in the hands of the assessee.

At the time of hearing, the contention of the ld. A/R is that the alleged investments were duly reflected in the balance sheet of the assessee as clearly stated in details of investment in unquoted equity shares forming part of Note no. 4 of the balance sheet which is reproduced as under: