ITO WD-2(1), KOL, KOLKATA V. DEVINE DISTRIBUTORS (P) LTD, DELHI

ITA 2018/KOL/2024

AI Insights

The case involves an appeal by the Income Tax Officer (ITO), Ward-2(1), Kolkata against Devine Distributors (P) Ltd., concerning the assessment year 2012-13. The primary issue was the addition of Rs. 2,90,00,000 as unexplained investment in property by the assessee. The Ld. Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi, had deleted this addition, leading to the Revenue's appeal. The tribunal examined the arguments and evidence presented, including the sale of shares by the assessee to fund the property investment, and decided to uphold the CIT(A)'s decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470978 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 2018/Kol/2024 Assessment Year 2012-13 ITO Ward-2(1), Kolkata, P-7, Chowringhee Square, 7th Floor, Kolkata - 700069 ….................................. Appellant vs. Devine Distributors (P) Ltd., Delhi, R-781, New Rajendra Nagar, Delhi – 110060 [PAN: AADCD1401C] ............................... Respondent Appearances by: Assessee represented by : None Department represented by : Loviesh Shelly, Addl. CIT, Sr. DR Date of concluding the hearing : 20.03.2025 Date of pronouncing the order : 20.03.2025 O R D E R PER BENCH 1. This appeal arises from the order u/s 250 of the Income Tax Act, 1961 (hereafter ‘the Act’) dated 31.07.2024, passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 1.1 In this case, the Ld. CIT(A) has deleted the addition of Rs. 2,90,00,000/- having been made as investment in property from allegedly unexplained sources. The Revenue is in appeal with the following grounds: “1. The Ld. CIT(A) has erred in law in deleting the addition of Rs. 2,90,00,000/- without appreciating the merit of the case. 2 ITA No. 2018/Kol/2024 Devine Distributors (P ) Ltd. 1.2 On the last date of hearing, none appeared on behalf of the assessee. However, it was decided to proceed ahead with the adjudication with the help of Ld. DR. 2. Before us, the Ld. DR read out from relevant portions from the Ld. AO’s order and stated that before the Ld. AO, the assessee did not produce the necessary details in justification of the source of investment in said property. However, it is seen that in the impugned order, it is clearly recorded in para 5.3 that to obtain funds for the impugned investment, the assessee company sold its investments in as many as 9 companies to obtain Rs. 3 Crores for effecting the impugned transactions. The Ld. CIT(A) has recorded in detail these factors in paras 5.2, 5.3 and 5.4 regarding the details as would have been before the Ld. AO. It is further recorded in para 5.4 of the impugned order that the Ld. AO has mentioned about the source of funds being from investment in shares. The Ld. DR vehemently argued that it was not clear whether the details submitted before the Ld. CIT(A) were actually before the Ld. AO or not. He requested that this matter should be remanded back for examination by the Ld. AO. It is seen that the department has not take any specific ground regarding admission of fresh evidence or even denial of any opportunity to the Ld. AO. Thus, we deem it fit to uphold the finding of Ld. CIT(A) and record that the investment in property was done from fund obtained from sale of shares held by the assessee. 3. In the result, appeal filed by the Revenue is dismissed. Order pronounced in the court on 20.03.2025 Sd/- Sd/- (George Mathan) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 20.03.2025 AK, P.S. 3 ITA No. 2018/Kol/2024 Devine Distributors (P ) Ltd. Copy of the order forwarded to: 1. Devine Distributors (P) Ltd., Delhi 2. ITO Ward-2(1), Kolkata 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "