Sati Promoters (P) Ltd. v. ITO

Case Laws Analysis
REFERRED ITO v. Naina Distributors (P) Ltd. 2023 TaxPub(DT) 687 (Kol-Trib)
REFERRED Crystal Networks (P.) Ltd. v. CIT 2013 TaxPub(DT) 1470 (Cal-HC)

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The Tax Publishers2024 TaxPub(DT) 1990 (Kol-Trib) IN THE ITAT KOLKATA BENCH RAJESH KUMAR, A.M. & SONJOY SARMA, J.M. Sati Promoters (P) Ltd. v. ITO I.T.A. No. 527/Kol/2023 12 April, 2024 Appellant by: Shri Miraj D Shah, A.R Respondent by: B. K. Singh, JCIT, Sr. D.R ORDER *Rajesh Kumar, A.M.* This is an appeal preferred by the assessee against the order of the learned Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the learned Commissioner (Appeals)) dated 19-5-2023 for the assessment year 2012-13. 2. The only issue raised by the assessee is against the confirmation of addition of Rs. 1,98,00,000 by the learned Commissioner (Appeals) as made by the assessing officer under section 68 of the Act by treating the share capital/share premium received as unexplained. 3. Facts in brief are that the case of the assessee was selected for scrutiny in order to examine large share premium received during the year. Accordingly statutory notices were duly issued and served to the assessee. In response to the various notices, the assessee appeared before the assessing officer and also furnished certain details/information before the assessing officer as stated at page no. 2 of the assessment order. The assessee issued during the financial year 9900 equity shares at face value of Rs. 10 each at premium of Rs. 1990 per equity share. The details/information filed before the assessing officer comprised copies of audited financial statements, ITR, PAN, ledger accounts and bank statements of the assessee besides filing copies of balance sheets, bank statements, audited accounts/reports, certificates of incorporation, share application forms, share allotment letters, copies of share certificate, assessment orders under section 143(3) of the Act (of five subscribers), source of source certificates (of five subscribers)of the subscribers vide letter dated 15-1-2015. The assessing officer issued summons under section 131 of the Act directing the Assessee to produce the directors of the subscribing companies. The said notice was duly complied with by the directors of the assessee company submitting all the documents as called for but the directors of the subscribing companies did not attend personally. Pertinent to state that the assessing officer has not issued any summons under section 131 or notices under section 133(6) of the Act to individual subscribers. Finally the assessing officer, rejecting the contentions of the assessee, added the entire share capital/share premium amounting to Rs. 1,98,00,000 to the income of the assessee under section 68 of the Act as unexplained cash credit in the assessment framed under section 143(3) of the Act dated 13-3-2015. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2024 TaxPub(DT) 1990 (Kol-Trib)

IN THE ITAT KOLKATA BENCH

RAJESH KUMAR, A.M. & SONJOY SARMA, J.M.

Sati Promoters (P) Ltd. v. ITO

I.T.A. No. 527/Kol/2023

12 April, 2024

Appellant by: Shri Miraj D Shah, A.R

Respondent by: B. K. Singh, JCIT, Sr. D.R

ORDER

Rajesh Kumar, A.M.

This is an appeal preferred by the assessee against the order of the learned Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the learned Commissioner (Appeals)) dated 19-5-2023 for the assessment year 2012-13.

2. The only issue raised by the assessee is against the confirmation of addition of Rs. 1,98,00,000 by the learned Commissioner (Appeals) as made by the assessing officer under section 68 of the Act by treating the share capital/share premium received as unexplained.

3. Facts in brief are that the case of the assessee was selected for scrutiny in order to examine large share premium received during the year. Accordingly statutory notices were duly issued and served to the assessee. In response to the various notices, the assessee appeared before the assessing officer and also furnished certain details/information before the assessing officer as stated at page no. 2 of the assessment order. The assessee issued during the financial year 9900 equity shares at face value of Rs. 10 each at premium of Rs. 1990 per equity share. The details/information filed before the assessing officer comprised copies of audited financial statements, ITR, PAN, ledger accounts and bank statements of the assessee besides filing copies of balance sheets, bank statements, audited accounts/reports, certificates of incorporation, share application forms, share allotment letters, copies of share certificate, assessment orders under section 143(3) of the Act (of five subscribers), source of source certificates (of five subscribers)of the subscribers vide letter dated 15-1-2015. The assessing officer issued summons under section 131 of the Act directing the Assessee to produce the directors of the subscribing companies. The said notice was duly complied with by the directors of the assessee company submitting all the documents as called for but the directors of the subscribing companies did not attend personally. Pertinent to state that the assessing officer has not issued any summons under section 131 or notices under section 133(6) of the Act to individual subscribers. Finally the assessing officer, rejecting the contentions of the assessee, added the entire share capital/share premium amounting to Rs. 1,98,00,000 to the income of the assessee under section 68 of the Act as unexplained cash credit in the assessment framed under section 143(3) of the Act dated 13-3-2015.