M/S BLUPEX NIRYAT PRIVATE LIMITED,KOLKATA V. ACIT, CENTRAL CIRCLE 3(3), KOLKATA

ITA 2346/KOL/2025

AI Insights

The case involves M/s Blupex Niryat Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), Kolkata, confirming an addition of Rs. 10.00 lacs as unexplained cash credit concerning share application money received from M/s Point View Pvt. Ltd. The assessee had initially declared a total income of Rs. 15,000 in its return filed for the assessment year 2009-2010. Following a reopening of the case under section 147 of the Act, the assessee provided various documents to substantiate the genuineness of the share application money. However, the AO added the amount under section 68 of the Act, which was upheld by the CIT(A). The Tribunal, referencing several precedents, concluded that the mere non-compliance with a summons by the allottee company was insufficient to justify the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822433 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 17-10-2025
• Other Referred Cases: CIT Vs. Orissa Corporation Pvt. Ltd. (1986) 159 ITR 78 (SC), CIT Vs. Orchid Industries Ltd. 397 ITR 136 (Bom), Crystal Networks Pvt. Ltd. Vs. CIT 353 ITR 171 (Kol), ITO Vs. M/s. Cygnus Developers India Pvt. Ltd.(ITA No. 282/Kol/2012), Joy Consolidated Pvt. Ltd. Vs. ITO (ITA No. 547/Kol/2020)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Unexplained cash credit
• Section: 147; 148; 142(1); 68; 131

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH,KOLKATA SHRI RAJESH KUMAR, ACCOUNTANT MEMBER I.T.A. No.2346/Kol/2025 (Assessment Year 2009-2010) M/s Blupex Niryat Private Limited, 113, Park Street, Park Street H.O., Kolkata - 700016 [PAN: AABCB0158L] ..……..…...……………....Appellant vs. ACIT Central Circle 3(3), Kolkata, Aayakar Bhawan Poorva, 110 Shanti Pally, Kolkata – 700107 ................................ Respondent Appearances by: Assessee represented by : Robin Maheshwari, Adv. Department represented by : Monalisa Pal Mukherjee, Sr. DR Date of concluding the hearing : 18.12.2025 Date of pronouncing the order : 23.12.2025 O R D E R The present appeal filed by the assessee arises from order dated 11.08.2025passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals), Kolkata- 21[hereafter “the Ld.CIT(A)]. 2. The only issue raised by the assessee against the order of Ld. CIT(A) confirming the addition of Rs. 10.00 lacs as made by the AO u/s 68 of the Act as unexplained cash credit in respect of share application money received from M/s Point view Pvt. Ltd. 3. The facts in brief are that the assessee filed return of income on 15.09.2009 declaring total income of Rs. 15,000/-. Thereafter, the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 Printed from counselvise.com 2 ITA No.2346/Kol/2025 BlupexNiryat Private Limited of the Act on 17.03.2016. In compliance the assessee filed return of income on 04.10.2016. Thereafter, notice u/s 143(2) and 142(1) of the Act along with questionnaire were duly filed by the assessee and the assessee filed before the AO name, address, PAN, balance sheet, bank statement etc. to prove the genuineness of share application money received. The ADIT (Inv.), Unit 3(4) issued summons u/s 131 of the Act to the allottee company which was not responded. We note that the assessee has issued 10,000 equity shares at the face value of Rs. 10/- and premium of Rs. 90/-. Consequently, the AO added the amount u/s 68 of the Act which was confirmed by the Ld. CIT(A). 4. We note that the assessee has furnished all the details the information/details before the AO as well as the Ld. CIT(A) but neither of them done any verification nor pointed out any defect in the evidences filed by the assessee. The ld CIT(A) confirmed the addition merely on the ground that there was no compliance to summons u/s 131 of the Act by allottee company. In our opinion, this cannot be a ground for making the addition in the hands of the assessee as has been held in the case of CIT Vs. Orissa Corporation Pvt. Ltd. (1986) 159 ITR 78 (SC), (ii) CIT Vs. Orchid Industries Ltd. 397 ITR 136 (Bom), (iii) Crystal Networks Pvt. Ltd. Vs. CIT 353 ITR 171 (Kol), (iv)ITO Vs. M/s. Cygnus Developers India Pvt. Ltd.(ITA No. 282/Kol/2012) and (v) Joy Consolidated Pvt. Ltd. Vs. ITO (ITA No. 547/Kol/2020. Consequently, we set aside the order of Ld. CIT(A) and direct the AO to delete the addition. 5. In result, appeal of the assessee is allowed. Order pronounced on 23.12.2025 Sd/- (Rajesh Kumar) Accountant Member Dated: 23.12.2025 Printed from counselvise.com 3 ITA No.2346/Kol/2025 BlupexNiryat Private Limited AK,Sr. P.S. Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "