M/S. SWABHUMI VINTRADE PVT. LTD.,KOLKATA V. D.C.I.T., CIRCLE - 7(1), KOLKATA

ITA 1839/KOL/2025

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The case involves M/s Swabhumi Vintrade Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2017-2018. The primary contention was that the additions made by the Assessing Officer (AO) were outside the issues for which the case was selected for limited scrutiny, specifically concerning share premium transactions, and included additions related to share application money. The Tribunal admitted the additional ground raised by the assessee, citing precedents that allowed legal issues to be raised at any appellate stage. The Tribunal found that the AO had exceeded his jurisdiction by making these additions and also noted that the assessment was conducted by an officer without the proper jurisdiction, leading to the quashing of the assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822824 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Appeal Filed On: 18-08-2025
• Other Referred Cases: Jute Corporation of India Ltd. Vs CIT, National Thermal Power Co. Ltd v. CIT, PCIT vs. Britannia Industries Ltd., Shri Vijay Kumar, Raghvendra Mohta
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDIP SARKAR
• Assessee Lawyers: SUNIL SURANA
• Keywords: Unexplained cash credit
• Section: 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER आयकर अपील सं/ITA No.1839/KOL/2025 (निर्धारणवर्ा/Assessment Years :2017-2018) M/s Swabhumi Vintrade Pvt. Ltd. 5th Floor, HMP House, 4 Fairlie Place, Kolkata, West Bengal-700001 Vs DCIT, Circle-7(1), Kolkata PAN No. :AANCS 9035 P (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररतीकीओरसे /Assessee by : Shri Sunil Surana, FCA रधजस्वकीओरसे /Revenue by : Shri Sandip Sarkar, JCIT, Sr.DR सुनवाई की तारीख / Date of Hearing : 09/12/2025 घोषणा की तारीख/Date of Pronouncement : 23.12.2025 आदेश / O R D E R Per Rajesh Kumar, AM: This is an appeal filed by the assessee against the order passed by the ld. National Faceless Appeal Centre (NFAC), Delhi, dated 28.07.2025for the assessment year2017-2018. 2. At the time of hearing, the assessee raised additional ground which is extracted below: In this connection it is submitted that the addition has been made outside the issues for which the case was selected for limited scrutiny which is bad in law and therefore the entire addition is liable to be deleted. Therefore, the assessee is filing herewith an additional ground which goes to the root of the issue and no fresh investigation of facts is required. In view of the Judgment of the Hon'ble Supreme Court in the case of Jute Corporation of India reported in 187 ITR page 688 and National Thermal Power Corporation reported in 229 ITR 383 the additional ground may be admitted. It is requested to kindly admit the additional grounds which are enclosed herewith. Printed from counselvise.com ITA No.1839/KOL/2025 2 Additional Ground : “For that the addition made outside the issues for which the case was selected for limited scrutiny is bad in law and therefore the entire addition is liable to be deleted.” 3. After hearing the rival contentions and perusing the material on record, we find that the assessee has raised an additional ground of appeal challenging the jurisdiction of the AO to make addition. In our opinion the issued raised in the additional ground is a purely a legal issue qua which all the facts are available in the appeal folder and no further verification of facts are required from any quarter whatsoever. In our considered view the assessee is at liberty to raise any legal issue before any appellate authority for the first time even when the same has not been raised before the lower authorities. The case of the assessee is squarely coverd by the decisions of the Apex court in the case of i) Jute Corporation of India Ltd. Vs CIT in 187 ITR 688 , ii) National Thermal Power Co. Ltd v. CIT [1998] 229 ITR 383 and also by the decision of Hon’ble Calcutta High Court in PCIT vs. Britannia Industries Ltd. [2017] 396 ITR 677 (Cal). Therefore, we are inclined to admit the same for adjudication. 4. In regard to the additional ground, ld.AR submitted that the assessee has filed its return of income u/s.139(1) of the Act on 15.10.2017 declaring total income at Rs.520/- The case of the assessee was selected for limited scrutiny and accordingly statutory notices were issued u/s.143(2) & 142(1) of the Act along with questionnaire which was Printed from counselvise.com ITA No.1839/KOL/2025 3 duly replied by the assessee. Finally, the AO made an addition of Rs.90,00,000/- u/s.68 of the Act on account of unexplained cash credit in respect of share application money received by the assessee during the year under consideration and added the same to the total income of the assessee. In appeal, ld. CIT(A) confirmed the order of the AO. 5. After hearing the rival contentions of the parties and perusing the material available on record, we find that the limited scrutiny was selected for examination of share premium, however, we note that during the assessment proceedings the AO made the addition in respect of share application money received by the assessee. Therefore, the addition made by the AO is in violation of the scope of limited scrutiny and accordingly the addition cannot be sustained. The case of the assessee is squarely covered by the decision of coordinate bench of Chandigarh in the case of Shri Vijay Kumar (ITA No. 434/Chad/2019 for AY 2014-15 dated 12.09.20) wherein it has been held as under: “3. The main contention of the Ld. Counsel for the assessee is that the Assessing Officer while making the impugned additions has exceeded his jurisdiction. That the case of the assessee was selected for limited scrutiny issue i.e. regarding security transaction. The Assessing Officer could not find any reason to make any addition in respect of issue for which the limited scrutiny was done. However, the Assessing officer made the certain other additions for which the Assessing Officer did not have any jurisdiction. 4. The Ld. D.R has been fair enough to admit that the impugned additions have been made by the Assessing Officer on certain other issues, whereas, the case of the assessee was selected for the purpose of limited scrutiny relating to security transactions.” Considering the facts of the assessee’s case and also the ratio laid down drawn in the above, we are of the considered view that the AO has exceeded his jurisdiction by going beyond the scope of limited scrutiny. In our opinion, the order passed by the AO is bad in law and cannot be sustained for the said reason. Accordingly we quash the assessment order as nullity and bad in law. Thus, the additional ground raised by the assessee is allowed. 6. With regard to ground No.1 of the appeal, the assessee has agitated that the statutory notice issued for scrutiny as well as order Printed from counselvise.com ITA No.1839/KOL/2025 4 passed by the AO was without jurisdiction and therefore, the entire assessment is liable to be quashed. We note that in this case, the return of income has been declared by the assessee is only at Rs.520/-. The notice u/s.143(2) of the Act was issued by the ITO Ward-1, NALG, wherein the assessment was framed in this case by the ACIT, Circle-9(1), Kolkata. Therefore, the ACIT Circle-9(1), Kolkata framing the assessment dehors the issuance of notice u/s.143(2) of the Act and, therefore, the assessment framed by the ACIT, Circle-9(1), Kolkata is without jurisdiction and nullity in the eyes of law and the same is hereby quashed.. The case of the assessee finds support from the decision of the coordinate bench of the Tribunal in the case of Raghvendra Mohta, passed in ITA No.2416/Kol/2017, dated 08.04.2024, which has been upheld by the Hon’ble Jurisdictional High Court passed in ITAT/51/2025 IA No.GA/1/2025, GA/2/2025, dated 05.05.2025. Thus, the ground No.1 is allowed. 7. Since, we have quashed the assessment framed without jurisdiction, therefore, the other issues raised by the assessee on merits are not required any further adjudication. 9. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 23.12.2025 Sd/- (PRADIP KUMAR CHOUBEY) Sd/- (RAJESH KUMAR) न्यधनयकसदस्य / JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER कोलकाताKolkata; ददनाांक Dated 23.12.2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.1839/KOL/2025 5 आदेशकीप्रनतललपपअग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी/ The Appellant- 2. प्रत्यर्थी/ The Respondent- 3. आयकरआयुक्त(अपील) / The CIT(A), 4. आयकरआयुक्त/ CIT 5. विभागीयप्रविविवि, आयकरअपीलीयअविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्डफाईल / Guard file. सत्यापपतप्रतत //True Copy// Printed from counselvise.com "