DCIT CENTRAL CIRCLE 1(4), KOLKATA, KOLKATA V. .EDUCO VENTURES PVT LTD, KOLKATA

ITA 2126/KOL/2024

AI Insights

The case involves multiple appeals by the Revenue against Educo Ventures Pvt. Ltd. concerning the assessment years 2013-14, 2016-17, and 2020-21. The appeals were directed against the orders of the Commissioner of Income Tax (Appeals), Kolkata, which had earlier dismissed the additions made by the Assessing Officer regarding unsecured loans received by the assessee from M/s. Quality Vinimay Pvt. Ltd. The main contention by the Revenue was that the case involved organized tax evasion, which falls under an exception to the monetary limits for filing appeals. However, the tribunal found no evidence supporting this claim and noted that the issue had been previously examined in detail during earlier assessments without any incriminating findings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298795 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Accommodation entries; Penny stocks; Bogus
• Section: 147; 143(3); 268A

Judgement Text

"आयकर अपीलीय अिधकरण कोलकाता 'ए' पीठ, कोलकाता मŐ IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA ŵी संजय गगŊ, Ɋाियक सद˟ एवं ŵी संजय अव̾थी, लेखा सद˟ क े समƗ Before SRI SANJAY GARG, JUDICIAL MEMBER & SRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 2124/KOL/2024 Assessment Year: 2013-14 & I.T.A. No. 2126/KOL/2024 Assessment Year: 2020-21 & I.T.A. No. 2127/KOL/2024 Assessment Year: 2016-17 D.C.I.T, Central Cir-1(4), Kolkata ………. Appellant Vs. Educo Ventures Pvt. Ltd. ......... Respondent 15B, Hemanta Basu Sarani, Kolkata GPO, Kolkata-700001. (PAN: AACCE2487N) Appearances: Appellant represented by : Shri A. Kundu, CIT, DR Respondent represented by : Shri Tanmoy Kar, AR Date of concluding the hearing : December 19th, 2024 Date of pronouncing the order : December 20th, 2024 ORDER Per Sanjay Garg, Judicial Member: I.T.A. Nos. 2124,2126 & 2127/KOL/2024 Assessment Years: 2013-14, 2020-21 & 2016-17 Educo Ventures Pvt. Ltd. Page 2 of 4 All the captioned appeals filed by the Revenue are directed against the separate orders dated 08.07.2024 for Assessment Years 2013-14 and 2020- 21 and dated 05.07.2024 for Assessment Year 2016-17 of the Commissioner of Income Tax (Appeals), Kolkata-20 [hereinafter referred to as Ld. 'CIT(A)']. 2. It is seen, at the outset, that the tax effect on the disputed additions in respect of all the captioned appeals before us are less than Rs. 60 lakh as prescribed in the CBDT’s latest Circular No. 09/2024 dated 17.09.2024 for filing appeals by the Revenue before this Tribunal. 2.1. This circular prescribes that the revised monetary limits shall apply retrospectively to pending appeals as well. 3. The Ld. DR, however, has submitted that the case of the assessee is covered within the exception as provided under para 3.1(h) of the CBDT Circular No. 5 of 2024 dated 15.03.2024. The said clause (h) of the circular No. 5/2024 is reproduced as under: “h. Cases involving organized tax evasion including cases of bogus capital gain/loss through penny stocks and cases of accommodation entries, or” 4. The Ld. Counsel for the assessee, however, has brought our attention to the impugned assessment order as well as the order of the Ld. CIT(A) to submit that there is no allegation or evidence in file that the this case involves organized tax evasion including case of bogus capital gain/loss through penny stocks and case of accommodation entries. 5. We have heard rival contentions and gone through the impugned assessment order as well as the order of the Ld. CIT(A). In this case, the impugned addition had been made by the Assessing Officer (hereinafter referred to as the “AO”) in respect of unsecured loans received by the assessee from one concern M/s. Quality Vinimay Pvt. Ltd. in an assessment carried out u/s. 147 of the Act. The assessee, however had demonstrated before the Ld. CIT(A) that the said concern M/s. Quality Vinimay Pvt. Ltd. was the associate concern of the assessee. That the loans were taken from the said concern in the earlier years also. Further, that the original assessment for I.T.A. Nos. 2124,2126 & 2127/KOL/2024 Assessment Years: 2013-14, 2020-21 & 2016-17 Educo Ventures Pvt. Ltd. Page 3 of 4 the, Assessment Years 2012-13, 2013-14 And Assessment Year 2014-15 were carried out u/s. 143(3) of the Act and the aforesaid issue of loan from associate concern was duly examined in the scrutiny assessment carried out and no addition was made in respect of the aforesaid loan transaction. Further, the Ld. CIT(A) has noted that a survey action was carried out in the case of the assessee pursuant to which the assessments for the years under consideration were reopened. The Ld. CIT(A) has further noted that during the survey action no incriminating material whatsoever was found. The Ld. CIT(A), thereafter, considering the facts and circumstances of the case held that the impugned additions have been made by the AO merely on suspicion about the creditworthiness of the party advancing the loan to the assessee. From the aforesaid facts, it is clear that the facts of the case and issue involved do not suggest that this case can be said to be covered within the afore reproduced exception clause 3.1(h) of the CBDT Circular. Therefore, these appeals are not maintainable because of the low tax effect in view of the monetary limit prescribed by the CBDT vide Circular No. 09/2024 u/s. 268A of the Act. 6. In view of above stated position, all the appeals of the Revenue are dismissed u/s 268A of the Act because of low tax effect than the prescribed limits as per CBDT Circular No. 09/2024 (supra). 7. In the result, all the appeals of the revenue are dismissed. Order pronounced in the open Court on 20th December, 2024. Sd/- Sd/- [Sanjay Awasthi] [Sanjay Garg] Accountant Member Judicial Member Dated: 20.12.2024 Jd., Sr.P.S) I.T.A. Nos. 2124,2126 & 2127/KOL/2024 Assessment Years: 2013-14, 2020-21 & 2016-17 Educo Ventures Pvt. Ltd. Page 4 of 4 Copy of the order forwarded to: 1. Appellant – DCIT, Central Circle-1(4), Kolkata. 2. Respondent – Educo Ventures Pvt. Ltd. 3. CIT(A), Kolkata-20. 4. Pr. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. //True copy // By order Assistant Registrar ITAT, Kolkata Benches "