M/S. HARIOM VINCON PVT. LTD.,KOLKATA vs. I.T.O., WARD - 5(4), KOLKATA, KOLKATA
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Income Tax Appellate Tribunal, “C” BENCH, KOLKATA
IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI SONJOY SARMA, JM ITA No.1215/KOL/2024 (Assessment Year:2012-13) ITO Ward-5(4), Kolkata M/s Harion Vincon Pvt. Ltd. Aaykar Bhavan, P-7, 5/1, Clive Row, 2 nd Floor, Chowringhee Square, Room No.54, Kolkata-700001, Vs. Kolkata-700069 West Bengal West Bengal (Appellant) (Respondent) PAN No. AAACH6452J Assessee by : Shri Ankit Jalan, AR Revenue by : Shri Deep Agarwal, DR Date of hearing: 23.01.2025 Date of pronouncement : 31.01.2025
O R D E R Per Rajesh Kumar, AM:
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 29.04.2024 for the AY 2012-13.
The first issue raised in ground nos.1 to 5, is against the confirmation of addition of ₹1,21,90,000/- by ld. CIT (A) as made by the ld. AO u/s 68 of the Act on account of share capital / share premium as unexplained cash credit.
After hearing both the parties and perusing the materials available on record, we find that assessee has issued equity shares raising share capital/ share premium during the year by issuing 12,190/- equity shares of face value of ₹10 at a premium of ₹990, thereby raising a sum of ₹1,21,90,000/-. The said allotment was made out of share
The issue raised in ground no. 6, is against the confirmation of disallowance of ₹2,06,125/-, made by the ld. AO u/s 14A of the Act, even though there is no exempt income during the year.
The facts in brief are that during the year the assessee has earned except income from the investment made in the equity shares and the ld. AO noted in Para 7 that possibility of earning of exempt income cannot be ruled out and thus, by relying on the CBDT Circular no.5/ 2014, dated 11.02.2014, disallowance u/s 14A was made amounting to ₹2,06,125/-.
In the appellate proceedings, the ld. CIT (A) confirmed the addition despite noting the fact that the assessee has not earned any exempt income by observing and holding as under:-
“5.7. During the assessment proceedings, it was noted that the appellant company had shown investment in equity shares amounting to Rs.5,84,25,000/- as on 31.03.2012 and did not offer any disallowance of expenses u/s 14A of the Act in the total income. Therefore the AO computed the expenses relatable to exempt income by following the provisions of section 14A of the Act read with Rule 8D which worked out to be Rs.2,06, 125/- and added it to the total income of the appellant company for the year under consideration. 5.8. During the appellate proceedings, the appellant field written submissions and claimed that it did not earn any exempt income during the FY 2011-12 relevant to the
In the result, the appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open court on 31.01.2025.
Sd/- Sd/- (SONJOY SARMA) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 31.01.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//
Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata
