ITO WD -2(1), KOLKATA V. UNICORN TOWNSHIP (P) LTD., KOLKATA

ITA 2074/KOL/2024

AI Insights

The case involves Unicorn Township Pvt. Ltd., which faced additions to its income assessment for the year 2011-12 following a search operation under section 132 of the Income Tax Act. The additions included unexplained cash credits and other charges under sections 68, 69C, and 14A. The assessee appealed against these additions, and the CIT(A) deleted them, leading to the revenue's appeal to the ITAT. The ITAT dismissed the revenue's appeal, citing the absence of incriminating material found during the search, referencing the Supreme Court's decision in Pr. CIT Vs. Abhiser Buildwell (P) Ltd.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35943 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-10-2024
• Other Referred Cases: Pr. CIT Vs. Abhiser Buildwell (P) Ltd. [2023] 149 taxmann.com 399 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 132; 153A; 68; 69C; 14A

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. 2074/Kol/2024 Assessment Year: 2011-12 ITO, Ward-2(1), Kolkata Vs. Unicorn Township Pvt. Ltd. (PAN: AAACU 9329 H Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ C.O. No. 38/Kol/2024 (Arising out of I.T.A. No. 2074/Kol/2024) Assessment Year: 2011-12 Unicorn Township Pvt. Ltd. (PAN: AAACU 9329 H Vs. DCIT, Central Circle-3(2), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 28.11.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 02.12.2024 For the Appellant/ Ǔनधा[ǐरती कȧ ओर से Shri S. Jhajharia, FCA For the Respondent/ राजèव कȧ ओर से Shri Subhendu Dutta, CITDR 2 I.T.A. No.2074/Kol/2024 CO No. 38/Kol/2024 Assessment Year: 2011-12 Unicorn Township Pvt. Ltd. ORDER / आदेश Per Rajesh Kumar, AM: This is an appeal preferred by the revenue and the cross objection preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-21, Kolkata (hereinafter referred to as the “Ld. CIT(A)”] dated 18.06.2024 for the AY 2011-12. 2. At the outset, we note that there is a delay of 51 days in filing the appeal. After hearing both the sides and after considering the reasons as enumerated in the condonation petition and affidavit filed by the assessee, we find the reasons to be bonafide ,genuine and sufficient and accordingly condone the delay. 3. The revenue has challenged the order passed by the Ld. CIT(A) deleting the addition of Rs. 60,00,000/- made by the AO on account of unexplained cash credit u/s 68 of the Act and also Rs. 30,000/- u/s 69C and Rs. 15,000/- u/s 14A. The revenue has challenged the deletion of addition on merit and the assessee has filed cross- objection supporting the order of Commissioner of Income Tax (Appeal). 4. After hearing the rival contentions and perusing the material on record, we find that in this case, a search action u/s 132 of the Act was conducted on the assessee on 09.09.2015. During the course of search proceedings, several incriminating documents were found and seized. Accordingly notices u/s 153A was issued for six assessment years from 2010-11 to 2015-16 and which were made compliance thereto by filing a return of income. The AO has made addition of Rs. 60,00,000/- towards share capital/ share premium being an unexplained u/s 68 of the Act and Rs. 30,000/- u/s 69C @ 0.5% of the total share capital/share premium towards for arranging entries as commission beside addition of Rs. 15,000/- u/s 14A of the Act. We note that the AO has made addition on the basis of information furnished by the assessee meaning thereby that there was no incriminating material seized during search operation as there was no reference in the assessment order to that effect. Since the assessment 3 I.T.A. No.2074/Kol/2024 CO No. 38/Kol/2024 Assessment Year: 2011-12 Unicorn Township Pvt. Ltd. under consideration is unabated assessment on the date of search, therefore the jurisdiction of the AO to make the addition is limited to those items qua which the incriminating material was found and seized during the course of search. Therefore, in present case the addition was made without any incriminating material and thus the Ld. CIT(A) deleted the same on the ground that there was no incriminating material. 5. Considering the above facts and circumstances of the case, we are of the view that the case of the assessee is squarely covered by the decision of Hon’ble Supreme court in the case of Pr. CIT Vs. Abhiser Buildwell (P) Ltd. [2023] 149 taxmann.com 399 (SC) as there was no incriminating material found and seized during the course of search and therefore the AO has no jurisdiction to make additions. Consequently, we upheld the order of Ld. CIT(A) by dismissing the appeal of the revenue and the cross objection by the assessee becomes infructuous and is dismissed. 6. In the result, the appeal of the revenue as well as the cross objection of the assessee are dismissed. Order is pronounced in the open court on 2nd December, 2024 Sd/- Sd/- (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) (Rajesh Kumar/राजेश क ुमार) Judicial Member/ÛयाǓयक सदèय Accountant Member/लेखा सदèय Dated: 2nd December, 2024 SM, Sr. PS 4 I.T.A. No.2074/Kol/2024 CO No. 38/Kol/2024 Assessment Year: 2011-12 Unicorn Township Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- ITO, Ward-2(1), Kolkata& DCIT, Central Circle-3(2), Kolkata 2. Respondent – Unicorn Township Pvt. Ltd. 3. Ld. CIT(A)-21, Kolkata 4. Ld. Pr. CIT , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "