Goldman Stocks & Share Brokers Pvt. Ltd. Vs ITO (ITAT Kolkata)
In Goldman Stocks & Share Brokers Pvt. Ltd. vs. ITO, the ITAT Kolkata addressed the addition of ₹4.82 crore as unexplained cash credit under Section 147 of the Income Tax Act for Assessment Year 2013-14. The case arose from information received by the Assessing Officer (AO) indicating the alleged use of shell companies to route funds. The AO concluded that the amount represented accommodation entries and added it to the assessee’s income, a decision later upheld by the Commissioner of Income Tax (Appeals) [CIT(A)]. However, the assessee argued that the transactions were genuine and supported by audited accounts, bank statements, and trade records for sales of cotton knitted fabrics.
The ITAT reviewed the evidence, including ledger copies and payment details, and found that the transactions were related to legitimate sales to M/s Coral Environments Pvt. Ltd., amounting to ₹8.64 crore. It noted that payments received through bank transfers were wrongly treated as unexplained credits due to incorrect appreciation of facts by the AO and CIT(A). Consequently, the ITAT set aside the appellate order and directed the AO to delete the addition. This ruling underscores the importance of proper scrutiny of evidence in cases involving allegations of unexplained cash credits.
