ITO WARD-7(1), KOLKATA, KOLKATA V. LOGIC INFOTECH LIMITED, KOLKATA

ITA 1375/KOL/2024

AI Insights

The case involves Logic Infotech Ltd., which faced an addition of Rs. 1,83,00,000 as unexplained cash credit under section 68 of the Income Tax Act, 1961, for the assessment year 2013-14. The addition was initially made by the Assessing Officer following a reopening of the assessment under section 148. The Commissioner of Income Tax (Appeals) later deleted this addition, leading to the revenue's appeal to the Income Tax Appellate Tribunal. The Tribunal's decision to dismiss the revenue's appeal was based on the finding that the transactions were genuine and well-documented, and the identity of the parties involved was established.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469709 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Bogus
• Section: 147; 148; 68

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 1375/Kol/2024 Assessment Year: 2013-14 ITO, Ward-7(1), Kolkata Vs. Logic Infotech Ltd. (PAN: AAACL 9585 G) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 05.02.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 26.02.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Miraj D Shah, A.R For the revenue / राजèव कȧ ओर से Shri Sailen Samadder, Addl. CIT Sr. DR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the revenue against order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 26.04.2024 for AY 2013-14. 2. Brief facts of the case of the assessee is that the assessee being a company filed its return of income for AY 2013-14 declaring total income at Rs. 75,790/-. The return was processed and notice u/s 148 was issued for reopening the assessment for AY 2013- 2 I.T.A. No. 1375/Kol/2024 Assessment Year: 2013-14 Logic Infotech Ltd. 14. The AO determined the assessed income at Rs. 1,83,00,000/- by passing the order u/s 147 read with Section 144B of the Act as there was an addition made on account of unexplained cash credit u/s 68 of the Act amounting to Rs. 1,83,00,000/-. 3. Aggrieved and dissatisfied by the said order the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been partly allowed as the addition made u/s 68 of the act has been directed to be deleted. Being aggrieved and dissatisfied the revenue has preferred the appeal before us. 4. The Ld. D.R challenges the impugned order thereby submitting that the Ld. CIT(A) erred in deleting the addition of Rs. 1,83,00,000/- despite the fact that the assessee company did not establish satisfactorily the identity of M/s Artillegence Bio- Innovations Ltd. and genuineness of the transaction. 5. Contrary to that the Ld. A.R supports the impugned order by submitting that the Ld. CIT(A) has elaborately discussed the facts of the case of the assessee and thereafter directed the AO to delete the addition made u/s 68 of the Act. The Ld. Counsel of the assessee submits that during FY 2012-13 the assessee company sold the equity shares of M/s Ispat Sheets Ltd. and M/s Kirti Electro System Pvt. Ltd. to M/s Artillegence Bio- Innovations Ltd. in lieu of which the amount of Rs. 1,62,50,000/- and balance of Rs. 20,50,000/- were refunded to the said party during the year. The Ld. Counsel further submits that the AO has nowhere in his assessment disputed the genuineness of the documentary evidences as submitted by the assessee such as sale bill, copy of bank statement etc. The Ld. Counsel further submits that the issue under consideration relates to the sale of equity shares of M/s Ispat Sheets Ltd. and M/s Kirti Electro System Pvt. Ltd. was duly verified and assessed by the then AO in the AY 2011-12, and no adverse inference was drawn in respect of said investment which was duly reflected in the audited balance sheet of the previous year. 6. Upon hearing the submission of the Counsel of the respective parties, we have gone through the facts of the present case. It is pertinent to mention here that the purchase and sale transaction are supported and evidenced by the bank statement and 3 I.T.A. No. 1375/Kol/2024 Assessment Year: 2013-14 Logic Infotech Ltd. the transaction of purchase of shares were accepted by the AO in earlier year. We find substance in the arguments of the A/R that when the transactions of purchase of shares were accepted by the A.O. in earlier years the same could not be treated as bogus simply on the basis of report of the Investigation wing. It is further important to mention herein that transaction has taken place in the FY 2012-13, it is a fact that the assessee during the impugned assessment year has sold the shares of M/s Ispat Sheets ltd. and M/s Kirti Electro System Pvt. Ltd. to M/s Artillegence Bio-Innovations Ltd. to add an amount of Rs. 1,83,00,000/-. The assessee has purchased the shares of said scrip in earlier years and it was accepted by the AO in the years. It is also important to mention herein that the assessee during the year has sold the investment and has received the amount by banking channel. 7. Going over the facts of the case as well as the order of Ld. CIT(A), we do not find any infirmity in the impugned order. Accordingly, the appeal of the revenue is here by dismissed. In the result, the appeal filed by the revenue is dismissed. Order is pronounced in the open court on 26th February 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 26th February, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- ITO, Ward-7(1), Kolkata 2. Respondent – Logic Infotech Ltd., 21/7, Sahapur Colony, New Alipore, Kolkata-700053 3. Ld. CIT(A)-NFAC, Delhi 4 I.T.A. No. 1375/Kol/2024 Assessment Year: 2013-14 Logic Infotech Ltd. 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "