Arpan Securities Private Limited, Kolkata V. ITO, Ward 4(3), Kolkata, Kolkata

ITA 1061/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0478 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 15-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K TIWARI
• Assessee Lawyers: R K CHOWDHURY LD
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 144; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (D), KOLKATA [BEFORE SHRI P.M. JAGTAP, AM & SHRI S.S. GODARA, JM] I.T.A. NO. 1061/KOL/2017 ASSESSMENT YEAR: 2012-13 ARPAN SECURITIES PVT. LTD...........................................................APPELLANT 14C, M.D. ROAD, 4 TH FLOOR, KOLKATA 700 007. [PAN: AAJCA 9130 H] ITO, WARD 4(3), KOLKATA....................................RESPONDENT P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. APPEARANCES BY: SHRI R.K. CHOWDHURY, LD. AR APPEARING ON BEHALF OF THE ASSESSEE. SHRI A.K. TIWARI, CIT (DR) APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 18, 2018 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 18, 2018 ORDER PER P.M. JAGTAP, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 23, KOLKATA DATED 15.02.2017 WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE EX-PARTE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION DECLARING A TOTAL INCOME OF RS. 717/-. IN THE ASSESSMENT COMPLETED U/S 144 VIDE AN ORDER DATED 27.03.2015, TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS. 42,15,00,717/- AFTER MAKING AN ADDITION OF RS. 42.15 CRORES ON ACCOUNT OF SHARE CAPITAL AND SHARE PREMIUM CLAIMED TO BE RECEIVED BY THE ASSESSEE BY TREATING THE SAME AS UNEXPLAINED CASH CREDIT U/S 68. 2 I.T.A. NO. 1061/KOL/2017 ASSESSMENT YEAR: 2012-13 ARPAN SECURITIES PVT. LTD. 3. AGAINST THE ORDER PASSED BY THE AO U/S 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND SINCE THERE WAS NO COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 15.02.2017 PASSED EX-PARTE AND CONFIRMED THE ADDITION MADE BY THE AO U/S 68. AGGRIEVED BY THE ORDER OF LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT OF THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE WITHOUT PROVIDING PROPER AND SUFFICIENT OPPORTUNITY, THE LEARNED COUNSEL FOR THE ASSESSEE, SHRI R.K. CHOWDHURY, ADVOCATE HAS SUBMITTED THAT HIS FATHER WAS SERIOUSLY ILL DURING THE RELEVANT PERIOD WHEN THE APPEAL OF THE ASSESSEE WAS FIXED FOR HEARING BEFORE THE LD. CIT(A). HE HAS CONTENDED THAT DUE TO SERIOUS ILLNESS OF HIS FATHER, HE COULD NOT REPRESENT THE ASSESSEES CASE BEFORE THE LD. CIT(A) AND THE APPEAL OF THE ASSESSEE WAS DISMISSED BY THE LD. CIT(A) EX-PARTE. KEEPING IN VIEW THIS SUBMISSION MADE BY THE LEARNED COUNSEL FOR THE ASSESSEE, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON- APPEARANCE ON THE PART OF THE ASSESSEE WHEN HIS APPEAL WAS FIXED FOR HEARING BEFORE THE LD. CIT(A). WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AS UNDERTAKEN BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL 3 I.T.A. NO. 1061/KOL/2017 ASSESSMENT YEAR: 2012-13 ARPAN SECURITIES PVT. LTD. MAKE DUE COMPLIANCE BEFORE THE LD. CIT(A) AND EXTEND ALL POSSIBLE COOPERATION IN ORDER TO ENABLE HIM TO DISPOSE OF THE APPEAL EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH SEPTEMBER, 2018. SD/- SD/- (S.S. GODARA) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 18/09/2018 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. ARPAN SECURITIES PVT. LTD., 14C, M.D. ROAD 4 TH FLOOR, KOLKATA 07. 2. ITO, WD-4(3), AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA