PREMA TRADERS PVT. LTD.,KOLKATA V. I.T.O., WARD - 4(1), KOLKATA

ITA 2508/KOL/2024

AI Insights

The case involves Prema Traders Private Limited, which appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, confirming the addition of Rs.94 lakhs as unexplained cash credit under section 68 of the Income Tax Act, 1961. The addition was initially made by the Assessing Officer following information from the ADIT(Inv.), OSD, Unit-4, Kolkata, suggesting that the assessee received money from a shell company, Brahma Trade Link Pvt. Ltd., against the sale of shares. The Tribunal noted that the assessee had shown the receipt from the sale of shares in their profit and loss account and had not pointed out any defects in the evidence provided to support the sale. The Tribunal concluded that merely relying on the report of the Investigation Wing was insufficient to sustain the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772366 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANGTINLEN HAOKIP
• Assessee Lawyers: SUNIL SURANA
• Keywords: Set aside; Unexplained cash credit; Accommodation entries

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER आयकर अपील सं/ITA No.2508/KOL/2024 (निर्धारण वर्ा / Assessment Year : 2013-2014) Prema Traders Private Limited 8th Floor, Room No.8144, Synagouge Street, , Kolkata-700001 Vs ITO, Ward-4(1), Kolkata PAN No. :AAGCP 4412 N (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Sunil Surana, AR रधजस्व की ओर से /Revenue by : Shri Mangtinlen Haokip, Sr.DR सुनवाई की तारीख / Date of Hearing : 28/07/2025 घोषणा की तारीख/Date of Pronouncement : 26/08/2025 आदेश / O R D E R Per Rajesh Kumar, AM : This is an appeal filed by the assessee against the order dated 14.11.2024, passed by the ld. CIT(A), National Faceless Appeal Centre, Delhi, for the assessment year 2013-2014. 2. The only issue raised by the ld. counsel of the assessee against confirming the addition of Rs.94 lakhs by the ld.CIT(A) as made by the ld. Assessing Officer in respect of money received from Brahma Trade Link Private Limited against the sale of shares. 3. The facts in brief are that the assessee filed its return of income on 19.09.2013 declaring total income at Rs.30,660/-. The Assessing Officer reopened the assessment of the assessee after receiving information from the ADIT(Inv.), OSD, Unit-4, Kolkata that the assessee has received Rs.94 lakhs from shell company i.e. M/s Brahma Trade Link Pvt. Ltd.. Finally a notice u/s.148 of the Act was issued on 16.03.2020 which was Printed from counselvise.com ITA No.2508/KOL/2024 2 complied with by the assessee by filing return of income on 09.08.2020. Thereafter the Assessing Officer issued questionnaire along with notice u/s.142(1) of the Act, which was replied by the assessee. Finally an addition of Rs.94 lakhs was made by the Assessing Officer as unexplained cash credit u/s.68 of the Act. 4. In the appellate proceedings, the ld.CIT(A) confirmed the same on the ground that the said shares were sold by the assessee had no loss nor profit and the same is nothing but accommodation entries received by the assessee from M/s Brahma Trade Link Pvt. Ltd. 5. After hearing the rival contentions and perusing the material available on record, we find that in this case the assessee has sold shares during the year to M/s Brahma Trade Link Private Limited and received Rs.94 lakhs. It is pertinent to mention here that the assessee engaged in purchase and sale of shares which has been acknowledged by the Assessing Officer. The said receipt of Rs.94 lakhs from sale of shares was duly shown in the profit and loss account and the profit was accordingly determined and offered to tax by the assessee. The Assessing Officer after receiving the credible information from ADDIT(Inv), OSD Unit-4, Kolkata came to the conclusion that the assessee has received accommodation entries in the form of sale of shares. We note that either of the authorities below have not pointed out any defects in such evidences filed by the assessee in support of sale of shares. Merely relying on the report of the Investigation Wing is not enough and the addition made based thereupon is unsustainable. We also find that the Printed from counselvise.com ITA No.2508/KOL/2024 3 consideration received from sale of shares has been shown in the profit and loss account then no addition can be made u/s.68 of the Act. Consequently, the order of the ld.CIT(A) is set aside and the Assessing Officer is directed to delete the addition made u/s.68 of the Act. 6. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 26/08/2025 SD/- (PRADIP KUMAR CHOUBEY) SD/- (RAJESH KUMAR) न्यधनयक सदस्य / JUDICIAL MEMBER लेखा सदस्य/ ACCOUNTANT MEMBER कोलकाता Kolkata; ददनाांक Dated 26/08/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : sआदेशधिुसधर/ 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 "