Aarya Industrial Products Pvt. Ltd., , Kolkata V. DCIT, Circle - 10(1), Kolkata , Kolkata

ITA 1106/KOL/2018

AI Insights

The case involves Aarya Industrial Products Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-4, Kolkata, for the assessment year 2014-15. The primary issues in the appeal were the confirmation of additions and disallowances made by the Assessing Officer, including substantial amounts added as unexplained income and cash credits, and disallowances related to consultancy charges and agricultural income. The Tribunal noted the repeated non-appearance and non-cooperation of the assessee in both the lower and appellate proceedings, leading to the decision being made based on the available records and the arguments of the Departmental Representative.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127319 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 22-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 21-05-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 143(3); 14A; 37(1)

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘‘सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA ी राजपाल यादव, उपा य (कोलकाता े )एवं ी राजेश क ु मार, लेखा सद य के सम [Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member] I.T.A. No. 1106/Kol/2018 Assessment Year: 2014-15 Aarya Industrial Products Pvt. Ltd. (PAN: AADCA 6403 F) Vs. DCIT, Circle-10(1), Kolkata Appellant / (अपीलाथ!) Respondent / ("#यथ!) Date of Hearing / स ु नवाई क& 'त(थ 23.02.2023 Date of Pronouncement/ आदेश उ*घोषणा क& 'त(थ 15.03.2023 For the Appellant/ 'नधा/0रती क& ओर से None For the Respondent/ राज व क& ओर से Shri G. Hukugha Sema, CIT ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeal)-4, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 06.03.2018 for the AY 2014-15. 2. None appeared on behalf of the assessee. 3. The assessee has challenged the order of Ld. CIT(A) on various grounds of appeal such as confirmation of addition of Rs. 7,19,90,713/- as unexplained income 2 I.T.A. No. 1106/Kol/2018 Assessment Year: 2014-15 Aarya Industrial Products Pvt. Ltd. u/s 68/69 of the Act, confirmation of Rs. 10,00,00,000/- as unexplained cash credit u/s 68.confirming the disallowance of consultancy charges u/s 37(1) of the Act ,disallowance of shortage of agro plantation and disallowance u/s 14A read with Rule 8D on which aggregate addition of Rs. 17,42,59,217/- was made by the AO. 4. Facts in brief are that the case of the assessee was selected for scrutiny through CASS and statutory notices were duly issued and served on the assessee however there was no compliance on the part of the assessee on various occasions allowed by the AO to furnish the details. The assessee has issued 50,00,000/- shares with face value of Rs. 10/- at a premium of Rs. 10/- per share thereby raising Rs. 10,00,00,000/- from M/s Kalimata Infotech Pvt. Ltd. which remained unverified and assessee did not furnish any details of the investor as well as the source and creditworthiness of the investor. Similarly consultancy charges of Rs. 10,16,335/- were paid to some agencies and details were not furnished. Similarly the AO called for the information in respect of agricultural income of Rs. 7,19,90,713/- and expenses incurred on shortage of agro plantation charges commission etc however the bills, vouchers were not filed. The Ld. Counsel for the assessee Shri Sanjiv Sah, undertook to file the evidences/information on every occasion but every time he turned up requesting for next date and therefore the assessment was completed and assessed income was computed Rs. 17,42,59,217/- in the assessment framed u/s 143(3) vide order dated 29.12.2016. 5. The Ld. CIT(A) allowed ten opportunities to the assessee from time to time on various dates however on the first eight dates no one appeared and sought adjournment. On the 9 th occasion i.e. 19.01.2018 Mr. Manish Tiwari attended the proceedings but again sought adjournment as per following table: SL. No. Date of Notice Date of hearing Remarks 1. 01.09.2017 18.09.2017 None attended. Sought Adjournment. 2. 18.09.2017 25.09.2017 None attended. Sought Adjournment. 3. 25.09.2017 13.10.2017 None attended. Sought Adjournment. 3 I.T.A. No. 1106/Kol/2018 Assessment Year: 2014-15 Aarya Industrial Products Pvt. Ltd. 4. 13.10.2017 02.11.2017 None attended. Sought Adjournment. 5. 03.11.2017 13.11.2017 None attended. Sought Adjournment. 6. 13.11.2017 06.12.2017 None attended. Sought Adjournment. 7. 06.12.2017 04.01.2018 None attended. Sought Adjournment. 8. 04.01.2018 19.01.2018 None attended. Sought Adjournment. 9. 19.01.2018 08.02.2018 None attended. Sought Adjournment. Provided last chance vide order sheet noting dated 19.01.2018 – “Sh. Manish Tiwari, A.R appeared . Sought adj. Last chance given. Case adjourned to 5 th March, 18 at 02.30 PM.” 10. 08.02.2018 05.03.2018 Sh Manish Tiwari, A.R attended sought adjournment. Last chance given case adj. to 05.03.2018 (order sheet noting) Finally the case was decided by Ld. CIT(A) on the basis of available information whereby the assessment order was affirmed by dismissing the appeal of the assessee. 6. After perusing the material on record and with the assistance of Ld. D.R, we have gone through the facts of the case. We find that even before the Tribunal the case was fixed on 06.09.2022 on which no one appeared. Thereafter again the case was adjourned to 12.01.2023 and again to 23.02.2023 but no one appeared before the Tribunal. Therefore, we are proceeding to decide the appeal on the basis of facts available in the file and after hearing the arguments of Ld. D.R. We have carefully perused the assessment order and appellate order and find that the assessee has not co- operated on the various dates of hearing given to the assessee before us also. Therefore we can reasonably presume that the assessee is not interested in prosecuting this appeal. In absence of any documents/evidences to the contrary, we are in agreement with the conclusion drawn by the Ld. CIT(A) on various issues. Accordingly we upheld the order of Ld. CIT(A) by dismissing the appeal of the assessee. 4 I.T.A. No. 1106/Kol/2018 Assessment Year: 2014-15 Aarya Industrial Products Pvt. Ltd. 7. In the result, the appeal of the assessee is dismissed. Order is pronounced in the open court on 15 th March, 2023 Sd/- Sd/- (Rajpal Yadav /राजपाल यादव) (Rajesh Kumar/राजेश क ु मार) Vice-President / उपा य Accountant Member/लेखा सद य Dated: 15 th March, 2023 SB, Sr. PS Copy of the order forwarded to: 1. Appellant- Aarya Industrial Products Pvt. Ltd., 1 st Floor, Santosh Apartment, 9, Hunger Ford Street, Kolkata-700017 2. Respondent – DCIT, Circle-10(1), Kolkata 3. Ld. CIT(A)-4, Kolkata (Sent through e-mail) 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata