BEATLE TRADING PVT. LTD.,DELHI V. ITO, WARD - 11(1), KOLKATA

ITA 2662/KOL/2024

AI Insights

The case involves Beatle Trading Private Limited appealing against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which upheld the additions and disallowances made by the Income Tax Officer under various sections of the Income Tax Act, 1961. The primary issues in the appeal included the legality of the order passed without a Document Identification Number (DIN) and the substantial additions made under section 68 concerning share capital and disallowances under section 14A. The Tribunal found procedural lapses in the verification process of the share application transactions and thus remitted the matter back to the Assessing Officer for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775511 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 27-12-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANAT KUMAR RAHA
• Assessee Lawyers: MIRAJ D SHAH
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER ITA No.2662/KOL/2024 (निर्धारण वर्ा / Assessment Year : 2011-2012) Beatle Trading Private Limited, 499/2-H/1, 2nd floor, 18B, Pandav Nagar, F/F Plot No. 10-11-12, Vishwas Nagar, East Delhi-110032, Delhi Vs ITO, Ward 11(1), Kolkata PAN No. :AAECB 3708 K (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by Shri Miraj D Shah, AR रधजस्व की ओर से /Revenue by : Shri Sanat Kumar Raha, CIT-DR सुनवाई की तारीख / Date of Hearing : 01/09/2025 घोषणा की तारीख/Date of Pronouncement : 09/09/2025 आदेश / O R D E R Per Pradip Kumar Choubey, JM : This is an appeal filed by the assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NAFC), New Delhi NFAC), Delhi dated 18.11.2024 in Appeal No.NFAC/2010-11/10052467 passed for Assessment Year 2011-12. 2. The assessee has raised the following grounds of appeal: “1. That on the facts and in circumstances of the case, the order dated 30.09.2021 as passed by the Income Tax Officer, Ward-20(1), New Delhi (hereinafter for the sake of brevity referred to as \"The Ld. A.O.\" or \"The Ld. Assessing Officer\"] under section 143(3) read with section 263/254 of the income-tax Act, 1961 (hereinafter for the sake of brevity referred to as \"The Act\"] and as upheld by the Ld. Commissioner of Income Tax-(Appeals), National Faceless Appeal Centre (NFAC) (hereinafter for the sake of brevity referred to as The CIT-(A)\") is bad at law and void ab initio. 2. That on the facts and in circumstances of the case, order passed under section 143(3) read with section 263/254 of the Printed from counselvise.com ITA No.2662/KOL/2024 2 Act dated 30.09.2021 is null and void as that order is without DIN and is violation of CBDT Circular No. 19/2019. 3. That on the facts and circumstances of the case the Ld. CIT (A) erred in upholding the addition of Rs 18,53,20,500/- u/s 68, being the amount of share capital raised by the Appellant 4. That on the facts and circumstances of the case the Ld. CIT (A) erred in upholding the disallowance of Rs 16,199/- u/s 14A.” 3. At the outset, ld AR requested to remit the matter back to the file of the Assessing officer so that the assessee would be able to prove its case before the Assessing Officer by filing substantial documentary evidence in support of its claim. 4. On the other hand, ld CIT DR did not object to the request of ld AR of the assessee. 5. We have considered the rival submissions and perused the record of the case. On perusal of the impugned order, we notice that while adjudicating the share application transaction Assessing Officer had issued notices u/s.133(6) of the Act to the concerned persons for verification of source of the sources of investment but most of the notices were returned unserved with a postal remark either ‘LEFT’ or ‘NO SUCH COMPNAY IN THIS ADDRESS’ and those received the notices, did not response to such notice. Accordingly, the Assessing Officer could not verify the sources of the transaction. Accordingly, in the interest of justice and fair play, we restore this issue to the file of ld.AO for readjudication afresh after providing sufficient opportunities of the hearing to the assessee. The Assessing Officer shall conduct fresh independent enquiry and the assessee is directed to produce all the person concerned before the Assessing Officer Printed from counselvise.com ITA No.2662/KOL/2024 3 for verification of transaction in question. Thus, the appeal of the assessee is allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 09/09/2025. Sd/- (RAJESH KUMAR) Sd/- (PRADIP KUMAR CHOUBEY) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 09/09/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "