TMI Blog2023 (3) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... see has properly explained the identity and creditworthiness of the share applicants and the genuineness of the alleged transactions and has also explained the source of source of the alleged sum received by the assessee. Thus, we do not find any reason to interfere in the finding of ld. CIT(A). Appeal filed by the Revenue is dismissed. - I.T.A. No.: 493/KOL/2020 - - - Dated:- 16-3-2023 - Sri Sanjay Garg, Judicial Member And Dr. Manish Borad, Accountant Member For the Assessee : Sh. Sushil Kumar Parnsukha, Adv. For the Revenue : Sh. Vijay Kumar, Addl. CIT ORDER PER MANISH BORAD, ACCOUNTANT MEMBER: This appeal filed by the Revenue pertaining to the Assessment Year (in short AY ) 2012-13 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the Act ) by ld. Commissioner of Income-tax (Appeals), Asansol [in short ld. CIT(A) ] dated 03.02.2020 arising out of the assessment order framed u/s 143(3) of the Act dated 31.03.2015. 2. Registry has informed that the appeal filed by the assessee is time barred by 155 days. Perusal of the records shows that the delay is mainly on account of COVID-19 restrictions. We, therefore, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase selected for scrutiny followed by serving of notices u/s 143(2) 142(1) of the Act. During the year the assessee has raised share capital including share premium of Rs. 1,71,13,000/-. Ld. AO called for the details for explaining the said share capital and share premium. In compliance thereto the assessee filed the details. Ld. AO thereafter analyzed the balance sheet and profit and loss account of the company and also the details filed with regard to the said share capital and share premium being charged at Rs. 190/- on the face value of Rs. 10/- each. Ld. AO concluded the assessment by making addition u/s 68 of the Act at Rs. 1.65 Cr for unexplained share capital and share premium and assessed the income at Rs. 1.65 Cr. 5. Aggrieved, the assessee preferred appeal before ld. CIT(A) and filed relevant details. Ld. CIT(A) noticed that the assessee had purchased a flat for which an amount of Rs. 1,58,71,524/- was invested and for financing the investment, share capital was raised through group companies M/s. Wholetime Commotrade and M/s. Volgina Finvest Pvt. Ltd. Ld. CIT(A) on the strength of the documentary evidences filed by the assessee was satisfied with the explanation gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order in the case of Wellman Wacoma Ltd. vs. JCIT (OSD), Circle-8, Kolkata ITA No. 1229/Kol/2012 decided on 13.04.2016 23. Copy of order in the case of I.T.O. Ward.9(3), Kolkata vs. M/s. Cygnus Developers (I) Pvt. Ltd. ITA No. 282/Kol/2012 decided on 02.03.2016 24. Copy of order in the case ITO vs High Growth Exports Pvt. Ltd. in ITA No. 515/Kol/2012 decided on 04.05.2016 25. Copy of order in the case DCIT, Circle.8, Kolkata vs. Zimkele Commodeal Pvt. Ltd.in ITA No. 959/Kol/2011 decided on 24.08.2016 26. Copy of order in the case Commissioner of Income Tax, Kol.Xiii Vs. Jamma Dass Gupta by Calcutta High Court in ITAT No. 20 of 2011 27. Copy of order in the case Commissioner of Income Tax, Kol-11 Vs. Regency Trust Ltd. By Calcutta High Court in ITAT No. 663 of 2004 28. Copy of order in the case Commissioner of Income Tax, Kol-11 Vs. Leonard Commercial P. Ltd. By Calcutta High Court in ITAT No. 114 to 2011 29. Copy of order in the case Commissioner of Income Tax, Kol-11 Vs. Chandela Trading Co (P) Ltd. By Calcutta High Court in ITAT no. 831 of 2004 30. Copy of order in the case Commissioner of Income Tax, Central-I, Calcutta Vs. M/s. Nishan In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Volgina Finvest Pvt. Ltd. M/s Wholetime Commotrade Pvt. Ltd. had paid Rs. 1.55 crores to the appellant company on 12-10-2011. as is evidenced from the bank statement of M/s Wholetime Commotrade Pvt. Ltd. On 10-10-2011 M/s Whole lime Commotrade Pvt. Ltd. received Rs. 55,00,000/- from M/s Real Ispat Power Pvt. Ltd. During the course of the appeal proceeding, it was informed that M/s Shivalay Ispat Power Pvt. Ltd. was sold to M/s Real Ispat Power Pvt. Ltd by virtue of a share sale agreement dated 15-07-201 1 for a consideration of Rs 75.31 crores. Out of the total consideration of Rs. 75.31 crores, an adjustment towards SBI term loan of Rs. 35.31 crores was proposed and the balance of Rs. 40 crores was proposed to be paid to the share holders of M/s Shivalay Ispat by M/s Real Ispat Power Pvt. Ltd. The shares sale agreement dated 15-07-2011 was submitted during the course of the appeal proceeding and the submissions of the appellant were found to be true. M/s Wholetime Commotrade Pvt. Ltd. was a share holder in M/s Shivalay Ispat, holding 41,000 shares. Further, the annual statement in form 2 submitted to the Registrar of companies were also produced evidencing that M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an agreement for the sale of the shares of M/s Shivalay Ispat for a total consideration of Rs. 75 crores. No doubt or aspersions can be cast on the genuineness of M/s Shivalay Ispat M/s Real Ispat Power Pvt. Ltd. And it cannot be claimed that they are fake and bogus companies and the shares sale agreement had been entered with dubious motives. The creditworthiness of M/s Real Ispat Power Pvt. Ltd. also cannot be challenged as its balance sheet reveals that it is having a share capital and reserves of Rs. 150 crores approximately as on 31-03-2012. Hence, the creditworthiness of M/s Real Ispat Power Pvt. Ltd. cannot be doubted. Under the share transfer agreement between M/s Shivalay Ispat M/s Real Ispat Power Pvt. Ltd., M/s Real Ispat Power Pvt. Ltd. is under the legal obligation to pay to the share holder of M/s Shivalay Ispat the agreed amount for the transfer of its shares. M/s Wholetime Commotrade Pvt. Ltd. is a share holder in M/s Shivalay Ispat hence M/s Real Ispat Power Pvt. Ltd. is under the legal obligation to pay the amount of consideration, as per agreement. to M/s Wholetime Commotrade Pvt. Ltd. for the transfer of its share. In view of this, M/s Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of shares of M/s Shivalay Ispat to M/s Real Ispat Power Pvt. Ltd. Similarly, M/s Volgina Finest Pvt. Ltd. had paid Rs. 10,00,000/- to the appellant companies on 28-09-2011 which received by M/s Volgina Finest Pvt. Ltd from M/s Real Ispat Power Pvt. Ltd. on 07-09-2011 in exchange of the sale of shares of M/s Shivalay Ispat to M/s Real Ispat Power Pvt. Ltd. All these are genuine transaction entered into between genuine entities and all these entities are having the requisite creditworthiness to enter into these financial transaction. Hence, the provision of sec. 68 of the IT Act are not attracted in this case. Hence, the addition of Rs. 1,65,00,000/- is deleted and the appeal is allowed. 10. The above finding of ld. CIT(A) stands unrebutted by ld. D/R. We are satisfied that the assessee has properly explained the source of share capital and share premium which is received from its group companies and the reason for raising the said share capital and share premium is also justified from the fact that the assessee wanted to purchase a flat and the same is appearing in the audited balance sheet. Even the source of source has also been explained as the two share applican ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
