IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRIPRADIP KUMAR CHOUBEY, JM ITA No.2602/KOL/2025 (Assessment Year: 2012-13)

ITO, Ward 7(1)

Arun Distributors Pvt. Ltd.

Aaykar Bhawan, P-7, 12B, Cossipore Road, Cossipore, Vs. Chowringhee Square, Kolkata-700002, West Bengal Kolkata-700069, West Bengal (Appellant) (

Respondent)

PAN No. AACCA1879Q Assessee by : Shri Anil Kochar, AR Revenue by : Shri Sanjib Kumar Paul, DR Date of hearing: 20.01.2026 Date of pronouncement: 26.02.2026

O R D E R

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 15.09.2025 for the AY 2012-13.

2. The issue raised in ground no.3 to 7 by the assessee is against the confirmation of addition by the ld. CIT (A) of ₹1,62,46,000/- as made by the ld. AO in respect share capital/ share premium.

2.1. The facts in brief are that the assessee filed the return of income on 11.09.2012, declaring total income of ₹24,05,093/-. The case of the assessee was selected for scrutiny under CASS and the notice u/s 143(2) and 142(2) of the Act along with questionnaire were issued and served upon the assessee. The assessee complied with the said questionnaire by filing all the details comprising names, address, PAN, audited accounts, confirmation etc. of the subscribing entities. The assessee issued ₹1,62,460/- equity shares of ₹10 each at a premium of ₹90 thereby raising share capital of ₹1,62,46,000/- including share premium of ₹1,46,21,400/-. However, the ld. AO ,without pointing out any defect or discrepancy in the documents filed by the assessee, treated the share capital/ share premium as unexplained cash credit and added to the income of the assessee in the assessment framed u/s 143(3) dated 10.02.2015. Besides making the addition u/s 14A read with section 8D of the IT Rules, 1962 of ₹18,64,282/-.

2.2. In the appellate proceedings, the ld. CIT (A) dismissed the appeal of the assessee after taking into consideration the reply/ submission of the assessee and after calling for the report from the ld. AO. The ld. CIT (A) noted that the assessee received share capital/ share premium of ₹1,62,46,000/- from sister concerns M/s Arun Distributors, a partnership firm in which the directors of the assessee companies were partners. Thereafter, the ld. CIT (A) noted that the assessee never argued that the ld. AO has not issued notice u/s 133(6) or 131 of the Act for independent verification of these transactions. The ld. CIT (A) referred the remand report dated 01.07.2025 and noted that the assessee had advanced substantial loans to the subscribers firm with an opening balance of ₹1,35,62,221/- and further, disbursement during the year ₹92,53,311/-. The ld. CIT (A) noted that thereafter the said firm subscribed the shares at huge premium of ₹90. The ld. CIT (A) also referred to the remand report wherein the ld. AO noted that the assessee deposited ₹20,24,000/- as cash in the bank account during the year and assessee has not filed any contemporaneous evidence to prove the genuineness of the deposits and finally, the dismissed the appeal by holding that the assessee has failed to prove the three limbs of Section 68 of the Act.

2.3. After hearing the rival contentions and perusing the materials available on record, we find that the assessee has filed before the ld. AO the names, addresses, copies of PAN ,bank account, audited accounts, confirmation from the subscriber which happened to be a partnership concern in which both the directors of the assessee company were partners. Therefore, the assessee raised this money by way of share capital/ share premium from the sister concern. We note that the ld. CIT(A) also called for remand report which was submitted by the Assessing Officer. The assessee has also filed reply to the said remand report. It was stated in the remand report that as noted by the ld. CIT(A) in para 8.3(i) that