FAST-N-PERFECT COMMERCIAL PVT LTD,KOLKATA V. I.T.O. WARD-5(4), KOLKATA

ITA 1215/KOL/2025

AI Insights

The case involves Fast-N-Perfect Commercial Pvt. Limited, which appealed against the order of the Commissioner of Income Tax (Appeals)-13, Kolkata, concerning the assessment year 2012-2013. The primary issue was the addition of Rs.307,77,40,000 as unexplained cash credit under section 68 of the Income Tax Act, due to the assessee's failure to substantiate the genuineness of share application money received. The tribunal dismissed the appeal due to an excessive delay in filing and the assessee's failure to provide necessary documentation at earlier stages of the assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778670 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 02-06-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Bogus
• Section: 68; 131

Judgement Text

" ITA No. 1215/KOL/2025 (A.Y. 2012-2013) Fast-N-Perfect Commercial Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.A. No. 1215/KOL/2025 Assessment Year: 2012-2013 Fast-N-Perfect Commercial Pvt. Limited,….…Appellant 23A, N.S. Road, 3rd Floor, Room No. 10, Kolkata-700001, West Bengal [PAN:AAACF3691B] -Vs.- Income Tax Officer,………………………...…….Respondent Ward-5(4), Kolkata, Aayakar Bhawan, 6th Floor, Room No. 27, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Vijay Kumar Singhal, CA, appeared on behalf of the assessee Shri Raja Sengupta, CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing: August 06, 2025 Date of pronouncing the order: October 14, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals)-13, Kolkata dated 2nd December, 2017 passed for assessment year 2012-13. Printed from counselvise.com ITA No. 1215/KOL/2025 (A.Y. 2012-2013) Fast-N-Perfect Commercial Pvt. Limited 2 2. Brief facts of the case are that in this case, the return has been filed online through electronic filing on 31.03.2013 showing total income of Rs.94,036/-. The return was processed u/s. 143(1) of the I.T. Act. Later on, the case was taken up for scrutiny through CASS, on AST module. Notice u/s.143(2) was issued on 08.09.2013 fixing the date of compliance on 18.09.2013. Further, a notice u/s.142(1) was also issued on 06.01.2015 along with questionnaire to the assessee. In compliance to the notices issued u/s. 143(2) and 142(1), neither any one appeared nor any written submission was filed. On perusal of the Balance sheet of the assessee, it is seen that the assessee had issued 21,31,548 equity shares (20,00,000 equity shares at the rate of Re.10/- each and 11548 equity shares of Rs. 5,000/- each including premium of Rs. 4,990/-). The assessee had received a total amount of Rs.307,77,40,000/- against such shares during the financial year 2011-12 including premium of Rs.305,64,24,520/-. In order to verify the genuineness of the said transactions and to verify the identity and creditworthiness of the shareholders of the assessee company, notice u/s 131 of I.T. Act was issued to the Directors of all of the shareholder companies of the assessee. They were asked to appear personally before the ld. Assessing Officer and to furnish details/ documents in support of the justification for the investment made by them in the assessee company and other details as asked for. But, none of them appeared before the ld. Assessing Officer. A show-cause letter was issued to the assessee on 11-03-2015 informing the facts and to explain as to why share application money received by it should not be treated as bogus unexplained cash credit and why the same should not be treated Printed from counselvise.com ITA No. 1215/KOL/2025 (A.Y. 2012-2013) Fast-N-Perfect Commercial Pvt. Limited 3 as its unaccounted money introduced in its books of accounts as share application money as per the provisions of section 68 of I.T. Act, but the assessee failed to put forward any explanation till the date of passing of order and also to prove the identity and creditworthiness of the creditors and genuineness of the transactions. Finally, ld. Assessing Officer disallowed the share application money of Rs.307,77,40,000/- including share premium of Rs.96,00,000/- received by the assessee during the year and added to the total income of the assessee as unexplained cash credit in the books of the assessee as per the provisions of section 68 of I.T. Act. From the record, it is seen that the assessee has shown Rs. 306,44,75,000/- as current investments in equity as on 31.03.2012. There was no such investment made by the assessee as on 31.03.2011. However, no disallowance u/s.14A of the I.T. Act, 1961 was computed by the assessee against this income. Further, administrative expenditure debited in the Profit & Loss Account was shown at Rs. 54,351/-. Ld. Assessing Officer computed the total income of the assessee at Rs.307,78,88,387/-. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) partly allowed the appeal of the assessee as the assessee failed to substantiate its claim by producing relevant documents as asked for. On being aggrieved, the assessee preferred an appeal before the ITAT. 3. The appeal is time barred by 2590 days. Shri Vijay Kumar Singhal, Director of the assessee-Company filed a condonation petition before the Tribunal dated 2nd June, 2025 saying that non- receipt of appellate order in time after a long gap of passing the Printed from counselvise.com ITA No. 1215/KOL/2025 (A.Y. 2012-2013) Fast-N-Perfect Commercial Pvt. Limited 4 order as well as due to the reason that the Bank account was frozen and all the Directors DIN were disqualified and inactive, therefore, he has not filed the appeal in the prescribed time and filed the appeal with a delay of 2590 days. 4. We have heard both the sides. It was the submission of the ld. A.R. for the assessee that there was no fault on the part of assessee for delay of filing the appeal before the ITAT as all the Directors DIN were disqualified and inactive due to frozen of Bank Account. He pleaded to condone the delay of 2590 days and to admit the appeal. 5. On the other hand, it was the submission of the ld. Departmental Representative that there is a huge delay of 2590 days and before the ld. Assessing Officer the assessee did not respond to the notices issued by the ld. Assessing Officer in support of its claim. He further submitted that the assessee preferred an appeal before the ld. CIT(Appeals) and the ld. CIT(Appeals) has given several opportunities but there was no response from the assessee to substantiate its claim by producing relevant documents. Thereafter the assessee preferred an appeal before the ITAT with a huge delay of 2590 days. Therefore, the attitude of the assessee clearly establishes that the assessee has not pursued with its Counsel about filing of the appeal. Thus, it indicates the gross negligence on the part of assessee. There is no sufficient cause to condone huge delay of 2590 days. Therefore, he pleaded to dismiss the appeal filed by the assessee. Printed from counselvise.com ITA No. 1215/KOL/2025 (A.Y. 2012-2013) Fast-N-Perfect Commercial Pvt. Limited 5 6. We have perused the material available on record. It is an admitted fact that the assessee neither furnished papers/documents before the ld. Assessing Officer nor before the ld. CIT(Appeals) as asked for. Before the Tribunal, the assessee filed an appeal with a huge delay of 2590 days. The only contention of the assessee is that due to frozen of the Bank account, all the directors DIN disqualified and inactive, huge delay was occurred. We have perused the affidavit which was filed in support of condonation of delay. The assessee failed to place any evidence in support of its claim by filing the documents to establish that the Bank accounts were frozen and DIN of directors was inactive. We are of the view that mere filing of the affidavit is not sufficient to say that the assessee was prevented to file an appeal for 2590 days. Proper affidavit was not filed in support of condonation of delay. Therefore, we are of the considered view that it is a gross negligence on the part of assessee. Merely handing over the appeal papers to the ld. counsel is not sufficient to say that he has acted with due diligence. In the present case on hand, there is a huge delay in filing the appeal and delay is due to negligence act of the assessee only. Moreover, before the ld. Assessing Officer as well as the ld. CIT(Appeals) the assessee has not produced the relevant documents as asked by them. All these acts are clearly established that the assessee is not due diligence. Therefore, we are of the firm view that it is not a fit case to condone the huge delay of 2590 days. The condonation petition filed by the assessee is dismissed. Printed from counselvise.com ITA No. 1215/KOL/2025 (A.Y. 2012-2013) Fast-N-Perfect Commercial Pvt. Limited 6 7. In the result, the appeal filed by the assessee is dismissed in limine. Order pronounced in the open Court on 14/10/2025. Sd/- Sd/- (Rajesh Kumar) (Duvvuru RL Reddy) Accountant Member Vice-President Kolkata, the 14th day of October, 2025 Copies to :(1) Fast-N-Perfect Commercial Pvt. Limited, 23A, N.S. Road, 3rd Floor, Room No. 10, Kolkata-700001, West Bengal (2) Income Tax Officer, Ward-5(4), Kolkata, Aayakar Bhawan, 6th Floor, Room No. 27, P-7, Chowringhee Square, Kolkata-700069 (3) CIT(Appeals)-13, Kolkata; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. Printed from counselvise.com "