M/s. AIC Iron Industries Pvt. Ltd., Kolkata V. DCIT, Circle-3(1), Kolkata, Kolkata

ITA 1018/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4516 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 11-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: S M SURANA
• Section: 68

Judgement Text

PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B, KOLKATA BEFORE SH. J.S UDHAKAR REDDY, ACCOUNTANT MEMBER AND SH. S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1018/KOL/2017 [ASSESSMENT YEAR: 2012 - 13] APPELLANT BY SH. S.M.SURANA, ADVOCATE RESPONDENT BY SH. S.DASGUPTA, ADDL. CIT DR DATE OF HEARING 10.07.2018 DATE OF PRONOUNCEMENT 0 8 .0 8 .2018 ORDER PER S.S . VISWANETHRA RAVI , JUDICIAL MEMBER THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 28.02.2017 PASSED BY CIT(A) - 9, KOLKATA FOR AY 2012 - 13. 2. THE LD. AR SUBMITS THE ISSUE INVOLV ED IN THE APPEAL IS INTRODUCTION OF SHARE CAPITAL BY THE SUBSCRIBER COMPANIES IN ASSESSEES COMPANY AND THE AO ADDED AN AMOUNT OF RS.2,65,00,000/ - UNDER THE HEAD UNDISCLOSED CASH CREDIT U/S 68 OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). T HE CIT(A) DISMISS ED THE GROUNDS OF APPEAL RAISED BEFORE HIM CHALLENGING THE ORDER OF THE AO EX - PARTE. IN THESE CIRCUMSTANCES, THE MATTER MAY BE TO REMAND ED TO THE FILE OF THE AO FOR CONDUCT ING INQUIRIES INDEPENDENTLY ON EACH OF THE SHARE SUBSCRIBING COMPANIES. THE LD. DR DID NOT CONT R OVERT THE SAME. 3. HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD . WE FIND THE AO FOUND THE ASSESSEE RECEIVED SHARE CAPITAL TO THE EXTENT OF RS.2,65,00,000/ - FR OM MANY COMPANIES AS DETAILED IN PARA 4 OF THE AOS ORDER. THE SAID AMOUNT WAS ADDED TO THE TOTAL INCOME OF THE ASSESSE E FOR NON - COMPLIANCE M/S. AIC IRON INDUSTRIES PVT.LTD., 25, GANESH CHANDRA AVENUE, 4 TH FLOOR, KOLKATA - 700013. PAN - AACCN0217F VS DCIT, CIRCLE - 3(1), KOLKATA. (APPELLANT) (RESPONDENT) ITA NO.1 018 /KOL/2017 [ASSESSMENT YEAR: 2012 - 13] PAGE | 2 TO PRODUCE THE DIRECTORS OF INVEST ING COMPANIES FOR VERIFICATION OF ITS IDENTITY AND GENUINENESS & CREDITWORTHINESS OF THE TRANSACTIONS. TAKING INTO CONSIDERATION AND THE SUBMISSIONS OF LD.AR & DR AND IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE REMAND THE MATTER TO THE FILE OF AO TO CONDUCT INQUIRY AS SET OUT HEREIN UNDER : - EXAMINE THE GENUINENESS AND SOURCE OF SHARE CAPITAL, NOT ON A TEST CHECK BASIS, BUT IN RESPECT OF EAC H AND EVERY SHAREHOLDER BY CONDUCTING INDEPENDENT ENQUIRY NOT THROUGH THE ASSESSEE. THE BANK ACCOUNT OF THE ENTIRE PERIOD SHOULD BE EXAMINED IN THE COURSE OF VERIFICATION TO FIND OUT THE MONEY TRAIL OF THE SHARE CAPITAL. FURTHER THE A.O. SHOULD EXAMINE THE DIRECTIONS AS WELL AS EXAMINE THE CIRCUMSTANCES WHICH NECESSITATED THE CHANGE IN DIRECTORSHIP IF APPLICABLE. HE SHOULD EXAMINE THEM ON OATH TO VERIFY THEIR CREDENTIALS AS DIRECTOR AND REACH A LOGICAL CONCLUSION REGARDING THE CONTROLLING INTEREST. THE A.O. IS DIRECTED EXAMINE THE SOURCE OF REALIZATION FROM THE LIQUIDATION OF ASSETS SHOWN IN THE BALANCE SHEET AFTER THE CHANGE OF DIRECTORS, IF ANY. 4. IN VIEW OF THE ABOVE, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RES ULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 0 8 .0 8 .2018. S D / - S D / - (J.S UDHAKAR REDDY) (S.S. VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: - 0 8 .0 8 .2018 *AMIT KUMAR* ITA NO.1 018 /KOL/2017 [ASSESSMENT YEAR: 2012 - 13] PAGE | 3 COPY FORWARDED TO: 1. APPELLANT - M/S. AIC IRON INDUSTRIES PVT.LTD., 25, GANESH CHANDRA AVENUE, 4 TH FLOOR, KOLKATA - 700013. 2. RESPONDENT - DCIT, CIRCLE - 3(1), KOLKATA. 3. CIT - KOLKATA 4. CIT(APPEALS) - KOLKATA 5. DR: ITAT - KOLKATA BENCHES SR.P.S./H.O.O ITAT, KOLKATA