IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRIPRADIP KUMAR CHOUBEY, JM ITA No.3269/KOL/2025 (Assessment Year: 2010-11)

Silverline Merchandise Pvt.

Ltd.

ITO Ward 5(1)

C/o. S.N. Ghosh & Associates, Aaykar Bhawan, Advocates-2, Garstin Palace, Vs. P-7, Chowringhee Square, 2^nd Floor, Suite No.203, off Kolkata-700069, West Bengal Hare Street, Kolkata-700001, West Bengal (Appellant) (

Respondent)

PAN No. AANCS2417H Assessee by : Shri Somnath Ghosh, AR Revenue by : Shri Sanat Kumar Raha, DR Date of hearing: 23.04.2026 Date of pronouncement: 28.04.2026

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 16.10.2025 for the AY

2010-11.

2. The only issue raised by the assessee in the various grounds of appeal is against the confirmation of addition of ₹12,05,80,000/- by the ld. CIT (A) as made by the ld. AO in respect of share capital/ share premium by treating the same as unexplained cash credit u/s 68 of the Act.

3. The facts in brief are that the assessee filed the return of income on 01.04.2011, declaring total income at ₹248/- which was processed u/s 143(1) of the Act. Thereafter, the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act and accordingly, the assessment u/s 147/ 143(3) of the Act was framed on 30.11.2011, assessing the total income at ₹23,990/-. Thereafter, the assessment was revised by the ld. PCIT, by invoking the revisional jurisdiction u/s 263 of the Act on the ground that the ld. AO has not made requisite and proper enquiries regarding the share capital/ share premium and hence, this is the consequential assessment order passed by the ld. AO u/s 143(3) / 263 /147/143(3) of the Act vide order dated 20.03.2015. In the consequential proceedings , the ld. AO issued notice u/s 142(1) of the Act on 29.05.2014, asking the assessee to produce the details / documents in respect of directors of the assessee company, bank accounts, along with the details of branches, complete shareholding pattern along with the details of share application money received, copies of bank accounts etc. Again , notice u/s 142(1) of the Act was issued by the assessee on 08.12.2014. The summon u/s 131 of the Act were also issued to the Director of the assessee company as well as directors of the subscribing companies to appear personally. The ld. AO noted that in some cases the notices were not served, whereas in some cases notices were duly served. The ld. AO noted that the assessee has issued 2,50,750/- equity shares at a face value of ₹10 each at a premium of ₹470/-. The assessee furnished before the ld. AO the details as called for by the ld. AO comprising the names, addresses, audited accounts, bank statements, etc. qua the subscribers. The notice u/s 133(6) of the Act were issued and replied by the subscribers by furnishing all the details and evidences as called for by the ld. AO. The summons were issued to the share subscribers, however, the same were served on 9 subscribers and on 3 subscribers, the summons were not served as the subscribers had changed the addresses. However, all the subscribers including the 3 subscribers filed their replies along with evidences called for by the AO in compliance. The fact has been taken cognizance and noted by the ld. AO in the assessment order. Thereafter, the ld. AO treated the share capital/ share premium as unexplained cash credit on the ground of non-compliance to the summons issued u/s 131 of the Act and therefore, the share capital/ share premium could not be verified. Consequently the addition was made to the income of the assessee u/s 68 as unexplained cash credit.

4. In the appellate proceedings, the ld. CIT (A) dismissed the appeal after taking the account the submissions and the evidences furnished by the assessee by observing and holding as under:-

“6.1 Grounds of Appeal: In these