DCIT Vs Raja Shelters Pvt. Ltd. (ITAT Kolkata)
In DCIT vs. Raja Shelters Pvt. Ltd. (ITAT Kolkata, order dated September 18, 2025), the Income Tax Appellate Tribunal (ITAT) dismissed two departmental appeals for Assessment Years (AYs) 2009–10 and 2013–14, upholding the Commissioner of Income Tax (Appeals) [CIT(A)]’s decision to delete additions made under Section 68 of the Income Tax Act, 1961. The Tribunal reaffirmed that in cases where assessments are completed and no incriminating material is found during a search, additions made under Section 153A are unsustainable, aligning with the Supreme Court ruling in PCIT v. Abhisar Buildwell Pvt. Ltd. (2023) 149 taxmann.com 399 (SC).
Facts of the Case:
Raja Shelters Pvt. Ltd., a company engaged in real estate and investment, filed its original return of income on 27 March 2010 declaring ₹1,500 as total income. A search and seizure operation under Section 132 was later conducted on 17 March 2015 on the Golden Goenka Group, of which the assessee was a part. Certain documents containing bank details of the assessee were seized (marked GG/3). The jurisdiction was transferred to Central Circle 4(3), Kolkata, and proceedings under Section 153A were initiated.
In response, the assessee filed a return declaring ₹1,500. The Assessing Officer (AO), however, made an addition of ₹15,00,000 under Section 68, treating share application money as unexplained cash credit. No other additions were made. The AO’s assessment was based on the documents found during the search, but no direct incriminating material linking the share subscriptions to any undisclosed income was produced.
