IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI SONJOY SARMA, JM (Assessment Year:2015-16)

Asst. Commissioner of Income APS Energy Private Limited Tax, Central Circle 4(1) Room No. 452 & 453, Aaykar Bhavan Poorva, 110, Marchall House, 33/1, Vs.

Shanti Pally, Kolkata-700107 Netaji Subhas road, West Bengal Kolkata-700001, West Bengal (Appellant) (

Respondent)

PAN No. AAICA3205G Assessee by : Shri A.K. Tulsyan, AR Revenue by : Shri Altaf Hussain, DR Date of hearing: 24.02.2025 Date of pronouncement : 09.05.2025

O R D E R

Per Rajesh Kumar, AM:

This is an appeal preferred by the Revenue against the order of the Commissioner of Income-tax (Appeals) Kolkata-27 (hereinafter referred to as the “Ld. CIT(A)”] dated 08.0.2024 for the AY 2015-16.

02. The only issue raised by the Revenue is against the deletion of addition of ₹2,00,45,000/- by the ld. CIT (A) as made by the ld. AO on account of unexplained cash credit.

03. The facts in brief are that the assessee filed the return of income u/s

139(1) of the Act on 09.09.2015, declaring total income of ₹ 23,347/-. The case of the assessee was selected for scrutiny through Computer Assisted Scrutiny Selection (CASS) under limited scrutiny.

Accordingly, statutory notices were duly issued and served upon the assessee which the assessee complied with by furnishing the details/ evidences as called for by the ld. AO from time to time during the assessment proceedings. The AO thereafter noted on the basis of evidences filed by the assessee that the assessee has raised share capital / share premium from two parties namely; M/s Amanat Commercial Pvt. Ltd. and Classic Goods Pvt. Ltd. aggregating to ₹2,00,45,000/-. The ld. AO also issued summon u/s 131 of the Act to the a allotee companies and called upon to furnish certain details mentioned in the summons. The summon in the case of Classic Goods Pvt. ltd. was returned unserved whereas in the case of Amanat Commercial Pvt. Ltd., it was duly served but nobody appeared. The ld. AO finally made the addition of ₹2,00,45,000/- as unexplained cash credit u/s 68 of the Act on the ground that there was no compliance to the summons and therefore, the amount of share capital/ share premium could not be verified.

04. In the appellate proceedings, the ld. CIT (A) allowed the appeal of the assessee after taking into account the submissions/ contention of the assessee. While deleting the addition the ld. CIT (A) recorded a finding of facts that though the share subscriber’s M/s Amanat Commercial Pvt. Ltd. and Classical Goods Pvt. Ld. were non responsive to the summons issued u/s 131 of the Act, however, the summons u/s 131 of the Act issued to the share applicants to appear on or before 20.11.2017 but in the meantime the assessment was framed on 13.11.2017, which was not in accordance with the Principle of natural justice. Thereafter, the ld. CIT (A) relied on the various decisions and after discussing the various aspects and facts regarding the the share subscribers, allowed the appeal by observing and holding as under: -

“5.2.7. In light of the aforesaid judgements, as well as examining the assessee's submission and considering the assessee's contention, it is noticed that the appellant assessee has discharged its onus by providing the details of the aforesaid share applicants through various documents as mentioned in the above paras. Hence, treating share capital of Rs. 2,00,45,000 as unexplained credit u/s 68 is not logical and seems based on mere assumptions and surmises. Further the opinion formed by AO merely on basis of nonappearance of director of share applicants' company where assessment order was passed before date fixed for appearing in notice u/s 131 of the Act is not acceptable. Therefore, the addition of Rs.2,00,45,000/- is liable to be deleted. Hence, these grounds of appeal raised by the assessee are allowed.”

05. After hearing the rival contentions and perusing the materials available on record, we find that undis