IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI SONJOY SARMA, JM (Assessment Year:2008-09)

PCJ Finvest Private DCIT Limited Aaykar Bhavan Poorva, 5^th Floor, 4^th Floor, Commercial Block Room No.509, 110-Shanti Pally, Vs. 2^nd Mile Metro Heights, Kolkata-700107, West Bengal Sevoke road, Siliguri-734001, West Bengal (Appellant) (

Respondent)

PAN No. AABCP8375R Assessee by : Shri Soumitra Choudhry, AR Revenue by : Shri Guru Bhashyam, CIT DR Date of hearing: 06.02.2025 Date of pronouncement : 28.02.2025

O R D E R

Per Rajesh Kumar, AM:

This is an appeal preferred by the Revenue against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 20.10.2023 for the AY 2008-09.

02. The only issue raised by the Revenue is against the deletion of addition of ₹25,56,00,000/- by the ld. CIT (A) as made by the ld. AO on account of share capital / share premium being unexplained credit u/s 68 of the Act.

03. The facts in brief are that the assessee filed the return of income on

31.03.2009, declaring total income at ₹16,889/-. The assessment was originally framed u/s 147/143(3) of the Act vide order dated 25.11.2010, assessing the total income at ₹1,02,610/-, which was rectified on 30.03.2012, determining the total income at ₹1,23,627/-. Thereafter, the ld. PCIT, observed from the assessment records that the assessee has received share capital/ share premium amounting to ₹25,56,00,000/- during F.Y. 2007-08 and the ld. AO has not made an in-depth enquiry while passing the order u/s 147/ 143(3) of the Act, dated 25.11.2010. Accordingly, the assessment was revised vide order dated 08.03.2013, passed u/s 263 of the Act by PCIT for de-novo assessment. Accordingly, in the set aside proceeding, the notice u/s 142(1) of the Act, along with questionnaires were issued. However, according to the AO no one attended the proceeding nor any documents/ details were filed explaining the share capital/ share premium. Thereafter, AO issued summons u/s 131 of the Act to the directors of the assessee company as well as to the directors of the share subscribers which again remained non-complied. Finally, the amount of share capital/ share premium was treated as unexplained cash credit u/s 68 of the Act and added to the income of the assessee in the assessment framed u/s 147/143(3)/ 263 of the Act vide order dated 21.03.2014.

04. In the appellate proceedings, before the ld. CIT (A), the assessee furnished all the evidences/ details concerning the 29 share subscribers who were all corporate entities and ld. CIT (A) also admitted the additional evidences under Rule 46A of the Income Tax Rules, 1962, and called for the remand report from the ld. Assessing Officer. In the remand proceedings, the assessee produced all the evidences/details qua 29 share subscribers proving the identity and creditworthiness of the investors as well as the genuineness of the transactions. The ld. AO submitted two remand reports, one dated

28.09.2018 and 2^nd dated 08.08.2022. The ld. CIT (A), after taking into consideration, the remand reports and the rejoinder filed by the assessee, allowed the appeal by observing and holding as under:-

“7. I have carefully examined the entire material on record including the assessment order. the submissions of the appellant, including the paper book, remand report and rejoinder to remand report.

7.1 Since the grounds 6 & 7 agitate only a solitary issue and since these grounds are inter-related, they are being disposed as one. The only issue involved is whether the premium money (excluding share capital) received from 29 Investing companies, cumulatively amounting to Rs.25,56,00,000/- on issue of equity shares to these 29 companies, invites the provisions of sec. 68 of the Act or not. Facts are that during the year the appellant company raised share capital including share premium of Rs.25,56,00,000/- from 29 share subscribers who are body corporate entities. The appellant