9911796707
TMI Blog2025 (5) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... l "B" Bench, Kolkata, in ITA No. 850/Kol/2023, for the assessment year 2011-12. The revenue has raised the following substantial questions of law for consideration : "A) Whether the Learned Tribunal has committed substantial error in law by deleting the addition to the tune of Rs.33,51,33,000/- (i.e. Rs.33,19,33,000/- + Rs.3,00,000 + Rs.29,00,000/-) made on account of unexplained cash credit under section 68 of the Income Tax Act, 1961 and addition on account of unexplained expenditure under section 69C of the Income Tax Act, 1961, amounting to Rs.16,75,665/-? B) Whether on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was justified in law to delete the addition u/s 68 of the Act holding tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard Mr. Soumen Bhattacharjee, learned standing counsel appearing for the appellant/revenue and Mr. Abhratosh Majumdar, learned senior counsel appearing for the respondent/assessee. It is not disputed by the revenue that identical issue was considered by this Court in the case of Principal Commissioner of Income Tax, Central-1, Kolkata vs. Wise Investment Private Limited, in ITAT No. 238 of 2024. The appeal filed by the revenue was dismissed by judgment dated May 6, 2025. The operative portion of the judgment is as follows :- "11. The short issue which falls for consideration in the instant case is whether three factors which are required to be established by the department at the first instance have been established namely identity of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectors of the company as promoters. In the impugned AY, the appellant was engaged in the business of Investment and Finance. The appellant Company was dealing in Equity shares. During this period the appellant was dealing in quoted equity shares and had a turnover of over 12.46 crores. The growth of the appellant company was apparent from the fact that in the immediately preceding AY, the turnover had been Rs. 8.99 crore. This was a phenomenal reported growth of almost 39%. It transpires that the appellant company was also carrying impressive inventories of quoted equity shares for a company in such nascent stages of its operations. It had inventories respectively of Rs. 8.38 crore and Rs. 9.36 crore as on 31.03.2011 and 31.03.2012. The Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company had grown from two and half times to 16% per share of Rs. 10 and therefore the CIT(A) on facts held that the assessee company was showing good returns and were showing good profits for its investors and it is a growing company. Therefore, the submission of the revenue that the allegation that unduly high premium was charged was not examined by the CIT(A) is incorrect. In fact, this aspect was also examined by the assessing officer to certain extent as pointed out by the CIT(A). When the matter travelled on appeal to the learned tribunal at the instance of the revenue, the factual aspects were re-examined. The tribunal notes that the paper book containing 1029 pages were filed and all documents were placed before the learned tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
