ITO, WD-2(1), SILIGURI, Darjeeling V. M/s Sarathi Realtors Pvt. Ltd., Siliguri

ITA 1039/KOL/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4046 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 24-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Section: 143(3); 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C, KOLKATA BEFORE SH. P.M.JAGTAP, VICE PRESIDENT & SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1039/KOL/2015 (ASSESSMENT YEAR-2012-13) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 27.05.2015 PASSED BY CIT(A), SILIGURI U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) FOR AY 2012-13. 2. THE ONLY ISSUE IS TO BE DECIDED AS TO WHETHER THE CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MADE ON ACCOUNT OF SHARE CAPITAL AND PREMIUM THEREON IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. HEARD BOTH PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS FOUND THAT THE ASSESSEE RECEIVED A TOTAL AMOUNT OF RS.2 CRORES FROM INVESTING COMPANIES ON ACCOUNT OF SHARE APPLICATION AND ALLOTMENT. THE AO REQUESTED THE ASSESSEE TO PROVIDE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF SUCH INVESTING COMPANIES. BUT HOWEVER, IT IS NOTED FROM THE ASSESSMENT ORDER THAT THE ASSESSEE FAILED TO PROVE SUBSTANTIALLY IDENTITY AND CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS OF THE TRANSACTIONS THEREBY, AO ADDED SAID AMOUNT TO THE TOTAL INCOME OF THE ASSESSEE U/S 68 OF THE ACT. IN CHALLENGE BEFORE THE CIT(A), IT WAS SUBMITTED THAT THE ASSESSEE CANNOT CONFIRM THE SOURCE OF MONEY OF ITS INVESTORS. CONSIDERING THE SAME, THE CIT(A) HELD THAT ITO, WARD-2(1), SILIGURI-734010. VS M/S. SARATHI REALTORS PVT.LTD., SHREE SHYAM COMPLEX (GROUND FLOOR), ASHRAMPARA, SILIGURI-734001. PAN-AAJCS8959A (APPELLANT) (RESPONDENT) APPELLANT BY SH. SAURABH KUMAR, ADDL. CIT DR RESPONDENT BY SH. SUBASH AGARWAL, ADV. DATE OF HEARING 23.01.2019 DATE OF PRONOUNCEMENT 06.02.2019 ITA NO.1039/KOL/2015 (ASSESSMENT YEAR-2012-13) PAGE | 2 THE ADDITION IN THE HANDS OF ASSESSEE IS NOT MAINTAINABLE BUT HOWEVER, DIRECTED THE AO TO INFORM THE AOS OF INVESTING COMPANIES FOR NECESSARY ACTION. BEFORE US, THE CONTENTION OF THE LD.AR IS THAT THERE WERE CONTRARY FINDINGS BY THE AO IN RESPECT OF SERVICE OF NOTICES U/S 133(6) OF THE ACT AND THEREBY PRAYED TO REMAND THE MATTER TO THE AO FOR HIS FRESH VERIFICATION OF THE DETAILS IN RESPECT OF INVESTING COMPANIES. LD.DR REPORTED NO OBJECTION IN RESPECT OF SUCH SUBMISSIONS. TAKING INTO CONSIDERATION THE SUBMISSIONS OF LD.AR AND LD.DR AND FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO REMAND THE MATTER TO THE AO FOR HIS FRESH VERIFICATION OF DETAILS INVOLVING SHARE APPLICATION MONEY AND PREMIUM THEREON ALL SHARE SUBSCRIBING COMPANIES. THUS, GROUND RAISED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06.02.2019. SD/- SD/- (P.M.JAGTAP) (S.S.VISWANETHRA RAVI) VICE PRESIDENT JUDICIAL MEMBER [ DATE:- 06.02.2019 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT- ITO, WARD-2(1), SILIGURI-734010. 2. RESPONDENT- M/S. SARATHI REALTORS PVT.LTD., SHREE SHYAM COMPLEX (GROUND FLOOR), ASHRAMPARA, SILIGURI-734001. 3. CIT-KOLKAT A 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES BY ORDER AR/H.O.O ITAT, KOLKATA