MAYURPANKH VINCOM PVT. LTD.,HOWRAH V. ITO, WARD 4(2), KOLKATA

ITA 1407/KOL/2023

AI Insights

The case involves two appeals by Mayurpankh Vincom Pvt. Ltd. against the orders of the CIT(A), National Faceless Appeal Centre, Delhi, for the assessment years 2011-2012 and 2012-2013. The primary issue was the addition of unexplained credits in the assessee's bank accounts, which the AO attributed to funds from M/s Patra Bastralaya, suspected of being involved in financial irregularities. The Tribunal examined the evidence presented, including bank statements and transaction records, and found that the assessee did not satisfactorily prove the source and genuineness of the funds received from M/s Crown Commotrade Pvt. Ltd. The Tribunal noted deficiencies in the assessee's documentation and the failure to substantiate the transactions, leading to the dismissal of both appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786456 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 18-12-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARY
• Assessee Lawyers: AVIJIT GHOSAL; ISSUING NOTICES
• Keywords: Cost of acquisition; Source of fund

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.1406 & 1407/KOL/2023 (निर्धारण वर्ा / Assessment Year : 2011-2012 & 2012-2013) Mayurpankh Vincom Pvt. Ltd, 66, Salkia School Road, Salkia, Howrah-711106 Vs ITO Ward-13(3), Kolkata PAN No. :AAFCM 8753 N (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Avijit Ghosal, Advocate रधजस्व की ओर से /Revenue by : Shri Abhijit Adhikary, Sr. DR सुनवाई की तारीख / Date of Hearing : 18/11/2025 घोषणा की तारीख/Date of Pronouncement : 18/11/2025 आदेश / O R D E R Per Bench : These two appeals filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 20.10.2023 for the assessment years 2011-2012 & 2012-2013. 2. Shri Avijit Ghosal, ld.AR represented on behalf of the assessee. Shri Abhijit Adhikary, Sr. DR appeared on behalf of the revenue. 3. We primarily adjudicate the issue for the assessment year 2011-2012 as the issue is common for both the assessment years 2011-2012 & 2012- 2013. 4. It was submitted by the ld. AR that the primary issue was that the assessee had purchased shares to an extent of Rs.48,72,000/- from M/s Crown Commotrade Pvt. Ltd. Ld. AR drew our attention to page 82 of the paper book which is a ledger account of M/s Crown Commotrade Pvt. Ltd. in the books of assessee, the same reads as follows :- Printed from counselvise.com ITA No.1406&1407/KOL/2023 2 5. Ld. AR also drew our attention to page 81 of the paper book, which is a bank account of the assessee maintained in Dhanalakshmi Bank Ltd. Printed from counselvise.com ITA No.1406&1407/KOL/2023 3 6. It was the submission that M/s Crown Commotrade Pvt. Ltd. had provided the assessee Rs.4,56,97,000/-. The assessee had refunded amount of nearly Rs.4,07,25,000/- and for the balance of Rs.48,72,000/-, had purchased the shares in M/s Crown Commotrade Pvt. Ltd. It was the submission that the said bank account in respect of M/s Dhanalakshmi Bank Ltd. was the account from which the refund of the monies to M/s Dhanalakhsmi Bank Ltd. was made. When the Bench asked regarding the receipt of the money by the assessee, the ld.AR drew our attention to page 66 to 70 of the paper book which are the copies of the assessee’s bank account maintained with Bank of Maharashtra, the same reads as follows:- Printed from counselvise.com ITA No.1406&1407/KOL/2023 4 Printed from counselvise.com ITA No.1406&1407/KOL/2023 5 Printed from counselvise.com ITA No.1406&1407/KOL/2023 6 Printed from counselvise.com ITA No.1406&1407/KOL/2023 7 7. It was the submission that as the transactions with M/s Crown Commotrade Pvt. Ltd. were genuine, the addition made by the AO in respect of the said credit of Rs.4,56,97,000/- is liable to be deleted. Printed from counselvise.com ITA No.1406&1407/KOL/2023 8 8. Ld. AR also drew our attention to page 83 of the paper book, which is the bill for the purchase of equity shares worth of Rs.48,72,000/- in M/s Crown Commotrade Pvt. Ltd. The copy bill has been issued to M/s Crown Commotrade Pvt. Ltd. is placed at page 83 of the paper book, the same reads as follows :- 9. In reply, ld. Sr. DR submitted that in the course of assessment summons had been issued to the directors of M/s Crown Commotrade Pvt. Ltd. and no one had appeared. The source of funds from M/s Crown Commotrade Pvt. Ltd. has not been proved. It was the submission that this money was basically the funds of M/s Patra Bastralaya. It was submitted that the investigation report in the case of said M/s Patra Bastralaya Printed from counselvise.com ITA No.1406&1407/KOL/2023 9 showed this transaction. It was the prayer that the addition as made by the AO is liable to be upheld. 10. At this point, the ld. AR was requested to show as to how the money had travelled from the bank account maintained with Bank of Maharashtra to Dhanalakshmi Bank Ltd. for the purpose of refund. Especially in view of the fact that whenever money have been received, the money have been withdrawn by either Shri Ashoka Kayan or one Shri Abhishek Bose. Substantially, the withdrawals are made by Shri Ashok Kayan. It must be specifically mentioned here that the balance sheet of the assessee has also been perused which has been placed in the paper book at page 36 which reads as follows :- Printed from counselvise.com ITA No.1406&1407/KOL/2023 10 11. The name of Shri Ashok Kayan nor Shri Abhishek Bose is seen as a debtor. This is also admitted by the ld. AR. Here it would also be worthwhile to specifically mentioned that the balance sheet and profit and loss account are audited by a chartered accountant under the name and style of Amit Bhattacharjee. Now, these facts clearly show that in the course of the reopening the details of the investigation report was made available to the assessee. In the course of assessment proceedings, the details of the investigation report was issued to the assessee. Multiple opportunities were given as mentioned by the AO throughout the order. Even the AO has exceeded his jurisdiction and tried to assist the assessee by issuing notices u/s.131 of the Act which, in fact, he is not expected to do. The creditors are those of the assessee and it is for the assessee to prove the transactions. 12. It would also be worthwhile to mention here that when the assessee was asked to show the details of the shares purchased on behalf of M/s Crown Commotrade Pvt. Ltd., it was submitted that it has not been asked for by the AO. In short, instead of discharging the assessee’s duty of proving the creditors, the assessee is shifting the responsibility of proving the accounts of the assessee to be true and correct on the revenue. The bank account of the assessee maintained with Bank of Maharashtra and M/s Dhanalakshmi Bank Ltd. being available with the AO and the AO having even the balance sheet and profit and loss account of the assessee, surprisingly did not find it in his wisdom even asked for special audit insofar as the entries in the bank account were not reflected in the balance sheet and profit and loss account of the assessee. How these money transferred Printed from counselvise.com ITA No.1406&1407/KOL/2023 11 to Ashok Kayan and Shri Abhishek Bose and such other persons or companies have been accounted in the balance sheet and how the entries are passed and surprisingly not traced nor tracked. The AO has only blindly taken a stand that the assessee has not proved one transaction. When there are multiple transactions sitting in the bank account and in black and white before him. There is substantial failure on the part of the AO to do any proper investigation. The assessee has also totally failed to prove the transactions with M/s Crown Commotrade Pvt. Ltd. The AO talks about layering of funds, however, what has been done by the assessee has not been brought out entirely, only one part of the transactions indulged by the assessee has been looked into, major portions still remained outside the investigation. Even the directions given by this Tribunal in various decisions earlier rendered, such as in the case of M/s Bisakha Sales Pvt. Ltd., ITA No.1493/Kol/2013, order dated 19.09.2014, reported in (2014) 52 taxmann.com 305 (Kolkata-Tribunal) and Star Griha Private Limited, passed in ITA No.1244/Kol/2013, order dated 14.08.2014, surprisingly, he has not been followed nor considered. The ld. AR has sought for setting aside the issues to the file of ld.AO for readjudication. This prayer of the ld. AR is also not liable to be accepted insofar as substantial opportunities have already been granted to the assessee and the assessee has miserably failed to prove these transactions. Admittedly, there are deficiencies in tracking the money trailed by the AO but there is substantial failure on the part of the assessee to prove the credits. The assessee having failed to prove the transactions and the assessee having only given Printed from counselvise.com ITA No.1406&1407/KOL/2023 12 the name, drew attention the purchase of shares on behalf of M/s Crown Commotrade Pvt. Ltd. to an extent of Rs.48,72,000/-, unfortunately, does not give any evidence for the credit entry of Rs.4,56,97,000/-. A perusal of the bill issued by the assessee to M/s Crown Commotrade Pvt. Ltd. also does not show from where the shares have been purchased or from whom, or whether the assessee is acting as an agent, no details as to how the purchase cost has been paid, has been shown. In fact, there is no entry in the bank accounts nor has it been shown as to how the payments have been made for the purchase of these shares. Even the ledger account shows only investment. Voucher numbers are there and the connected vouchers have also not been produced. In short, no evidence whatsoever credible has been produced to substantiate the assessee’s claim of the receipt of Rs.4,56,97,000/- from M/s Crown Commotrade Pvt. Ltd., thus, the identity, creditworthiness and much less, the genuineness of the transaction with M/s Crown Commotrade Pvt. Ltd. having proved. This being so, we are of the view that the addition as made by the AO and as confirmed by the ld.CIT(A) is liable to be upheld and we do so. Consequently, the appeal of the assessee for A.Y.2011-2012 in ITA No.1406/Kol/2023 is dismissed. 13. For the assessment year 2012-2013, the addition is in respect of amount of Rs.80 lakhs and for the same findings as for the assessment year 2011-2012, the order of the AO and that of the ld. CIT(A) stands upheld. Thus, the appeal of the assessee for A.Y.2012-2013 in ITA No.1407/Kol/2023 is also dismissed. Printed from counselvise.com ITA No.1406&1407/KOL/2023 13 14. In the result, both appeals of the assessee are dismissed. Order dictated and pronounced in the open court on 18/11/2025. Sd/- (SANJAY AWASTHI) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 18/11/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/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. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "