ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 4(1), KOLKATA, KOLKATA V. BURNPUR CEMENT LIMITED, ASANSOL

ITSSA 18/KOL/2025

AI Insights

The case involves Burnpur Cement Ltd., the respondent, who was accused by the ACIT, Central Circle - 4(1), Kolkata, the appellant, of receiving unexplained cash credits amounting to Rs.1,60,00,000 from three companies considered to be shell companies. The initial assessment added these amounts as unexplained cash credits under section 68 of the Income Tax Act, 1961. However, the Ld. CIT(A) deleted these additions after finding that the loans were repaid with interest and supported by adequate evidence. The tribunal upheld the CIT(A)'s decision, referencing similar cases and precedents that supported the assessee's position.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713034 (ITAT-KOLKATA)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: misc
• Other Referred Cases: PCIT vs. Ambe Tradecorp (P.) Ltd., Poddar Realtors Vs. ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. K. TULSYAN
• Assessee Lawyers: P.N. BARNWAL; PRINTED FROM COUNSELVISE.COM
• Keywords: Unexplained cash credit; TDS; Accommodation entries
• Section: 143(3); 153A; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA [Before Shri Rajesh Kumar, AM& Shri Pradip Kumar Choubey, JM] I.T(SS).A. No. 18/Kol/2025 Assessment Year: 2014-15 ACIT, Central Circle - 4(1), Kolkata Vs. Burnpur Cement Ltd. Palasdiha Gram, Panchgacha Road, Kanyapur, Burdwan-713341. (PAN: AACCA1999B) Appellant Respondent Date of conclusion of Hearing 13.05.2025 Date of Pronouncement 30.07.2025 For the Appellant Shri A. K. Tulsyan, AR For the Respondent Shri P. N. Barnwal, CIT, DR ORDER Per Shri Rajesh Kumar, AM The captioned appeal filed by the revenue is directed against the order of Ld. CIT(A), Kolkata-27dated 26.10.2024for AY 2014-15 arising out of assessment orders passed u/s. 153A/144of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) by DCIT, Central circle-4(1), Kolkata all dated 31.12.2018. 2. The sole issue involved in the revenue’s appeal is against the order of Ld. CIT(A) deleting the addition of Rs.1,60,00,000/- as made by the Assessing Officer on account of unexplained cash credit received by the assessee from paper/shell companies. 3. Facts in brief are that the assessee filed its return of income u/s. 139(1) of the Act on 30.11.2024 declaring total income at Rs.2,77,85,770/-. The case was selected under scrutiny and assessment was completed u/s. 143(3) of the Act on 23.12.2016 determining total income at Rs.2,77,85,770/-. Thereafter, search was conducted on 20.10.2016. Notice u/s. 153A of the Act was issued on 11.04.2017 and the same was complied with on 21.08.2018 by filing return of income declaring total income at Rs.2,77,85,770/- as declared in the original return. Thereafter, Printed from counselvise.com 2 IT(SS)A No. 18/Kol/2025 Burnpur Cement Ltd.AY 2014-15 statutory notice along with questionnaire was issued. The Assessing Officer observed that during the course of search operation a document BCL-15 bearing page no. 157 was seized which stated that assessee had received unexplained loan of Rs.1,60,00,000/- from three parties viz., M/s. Ajanta Vinimay Pvt. Ltd., Rs.10,00,000/-, from M/s. Padmakshi Vyapaar Pvt. Ltd. Rs.1,00,00,000/- and from M/s. Sanwaria Marketing Pvt. Ltd. Rs.50,00,000/-. These loans were also added on the basis of statement of Shri Prawesh Beria recorded from August 2004 to June 2009 in which he accepted that he was Director of several companies including M/s. Padmakshi Vyapaar Pvt. Ltd. which were providing accommodation entries to several beneficiaries. Consequently, the above additions were made in the assessment framed as unexplained cash credit u/s. 68 of the Act. 4. In the appellate proceeding, the addition was deleted by the Ld. CIT(A) after taking into account the contentions and submissions of the assessee by observing and holding as under: Printed from counselvise.com 3 IT(SS)A No. 18/Kol/2025 Burnpur Cement Ltd.AY 2014-15 6. After hearing the rival contentions and perusing the material available on record, we observe that the assessee has taken unsecured loans from three concerns as stated hereinabove and repaid the same along with the interest through banking channel after deduction of TDS. The ld. CIT(A) had recorded a very clear-cut finding to this effect that these loans were repaid by assessee and, therefore, no benefit was derived by the assessee. The Ld. CIT(A) also held that the assessee has furnished all the evidences in respect of these loans before the Assessing Officer as well as before the first appellate authority including loan confirmations, bank statements, ITRs, audited Balance Sheet and profit and loss account. Finally, the ld. CIT(A) deleted the addition by holding that the addition is not covered under the provision of section 68 of the Act. The case of the assessee also finds support from the decision of Hon’ble jurisdictional High Court in the case of PCIT vs. Ambe Tradecorp (P.) Ltd. (2022) 145 taxmann.com 27 (Gujarat), in which the Hon'ble High Court has held that once the repayment of loan has been established based on the documentary evidences then the credit entries cannot be looked in isolation after ignoring the debit entries despite the fact that debit entries were carried out in the later years. Even the case of the assessee is squarely covered by the decision of the co-ordinate bench decision in the case of Poddar Realtors Vs. ITO in ITA No. 265/Kol/2023, vide order dated 22.06.2023. Under these circumstances, we do not find any infirmity or defect in the order of the ld. CIT (A) which warrant our interference. Accordingly, we uphold the appellate order by dismissing the appeal of the Revenue. 6. In the result, the appeal of the revenue is dismissed. Order is pronounced in the open court on 30th July, 2025 SD/- SD/- (Pradip Kumar Choubey) (Rajesh Kumar) Judicial Member Accountant Member Dated: 30th July, 2025 JD, Sr. PS/SS, Sr. PS Printed from counselvise.com 4 IT(SS)A No. 18/Kol/2025 Burnpur Cement Ltd.AY 2014-15 Copy of the order forwarded to: 1. Appellant–ACIT, Central Circle-4(1), Kolkata 2. Respondent – Burnpur Cement Ltd. 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata, True Copy By Order Assistant Registrar ITAT, Kolkata Bench, Kolkata Printed from counselvise.com "