Meghana Commodities Pvt. Ltd., , Howrah V. ITO, Ward - 9(1), Kolkata , Kolkata

ITA 1167/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5395 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 28-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Unexplained cash credit
• Section: 143(3); 131

Judgement Text

ITA NO. 1167/KOL/2018 A.Y. 2012-2013 MEGHANA COMMODITIES PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 1167/KOL/2018 ASSESSMENT YEAR: 2012-2013 MEGHANA COMMODITIES PVT. LIMITED,.................. ........................APPELLANT DHAKA COLONY, NEAR BHATTA NAGAR (WEST), LILUAH, HOWRAH-711 203 [PAN: AADCM 6374 R] -VS.- INCOME TAX OFFICER,................................ ...................................RESPONDENT WARD-9(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI MIRAJ D. SHAH, A.R., FOR THE APPELLANT SHRI SHANKAR KUMAR HALDER, JCIT, SR. D.R. , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : JANUARY 29, 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 29, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ):- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-18, KOLKATA DA TED 14.03.2018 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF INVESTMENT IN SHARES. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 28.09.2012 D ECLARING TOTAL INCOME OF RS.4,532/-. DURING THE COURSE OF ASSESSMENT PROC EEDINGS, THE CLAIM OF THE ASSESSEE OF HAVING RAISED THE SHARE CAPITAL AMO UNTING TO RS.4.02 CRORES WAS EXAMINED BY THE ASSESSING OFFICER. DURIN G THE COURSE OF THE SAID EXAMINATION, HE ISSUED SUMMONS UNDER SECTION 1 31 TO THE THREE ITA NO. 1167/KOL/2018 A.Y. 2012-2013 MEGHANA COMMODITIES PVT. LIMITED 2 DIRECTORS OF THE SHARE SUBSCRIBER COMPANIES AS WELL AS TO THE DIRECTOR OF THE ASSESSEE-COMPANY. TWO OF THE SAID FOUR SUMMONS WERE RETURNED BY THE POSTAL AUTHORITIES UN-SERVED WHILE THERE WAS NO RESPONSE TO THE REMAINING TWO SUMMONS. THE ASSESSEE ALSO FAILED TO ESTABLISH THE IDENTITY AND CREDITWORTHINESS OF THE CONCERNED SHARE SUBSCRI BER COMPANIES AND THE GENUINENESS OF THE RELEVANT TRANSACTIONS. THE A SSESSING OFFICER, THEREFORE, TREATED THE ENTIRE SHARE CAPITAL OF RS.4 .02 CRORES RECEIVED BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION AS UNEXPLAINED CASH CREDIT AND AN ADDITION TO THAT EXTENT WAS MADE BY H IM TO THE TOTAL INCOME OF THE ASSESSEE IN THE ASSESSMENT COMPLETED UNDER S ECTION 143(3) VIDE AN ORDER DATED 17.03.2015. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO COMPLIANCE ON T HE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SA ID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DISMISSED T HE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 14.03.2018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS SUBMITTED THAT THE NOTICES ISSUED BY THE LD. CIT(AP PEALS) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING WERE NEVER RECEI VED BY THE ASSESSEE AND THE SAME, THEREFORE, COULD NOT BE COMPLIED WITH . HE HAS ALSO SUBMITTED THAT PROPER AND SUFFICIENT OPPORTUNITY WA S NOT AFFORDED BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT P ROCEEDINGS TO EXPLAIN THE RELEVANT CASH CREDITS REPRESENTING SHARE CAPITA L AMOUNTING TO RS.4.02 CRORES IN TERMS OF SECTION 68. HE HAS CONTENDED THA T THE MATTER MAY, THEREFORE, BE SENT BACK TO THE ASSESSING OFFICER FO R GIVING THE ASSESSEE A PROPER AND SUFFICIENT OPPORTUNITY TO ESTABLISH THE IDENTITY AND ITA NO. 1167/KOL/2018 A.Y. 2012-2013 MEGHANA COMMODITIES PVT. LIMITED 3 CREDITWORTHINESS OF THE CONCERNED SHARE SUBSCRIBERS AS WELL AS THE GENUINENESS OF THE RELEVANT TRANSACTIONS BY PRODUCI NG THE RELEVANT DOCUMENTARY EVIDENCE. THE LD. D.R. HAS ALSO NOT RAI SED ANY OBJECTION FOR SENDING THE MATTER BACK TO THE ASSESSING OFFICER. W E, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) E X-PARTE AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. AS UNDERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE ASSESSING OFFI CER AND SHALL EXTEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENABLE THE ASSESSING OFFICER TO COMPLETE THE ASSESSMENT EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 29, 2 019. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE -PRESIDENT (KZ) KOLKATA, THE 29 TH DAY OF JANUARY, 2019 COPIES TO : (1) MEGHANA COMMODITIES PVT. LIMITED, DHAKA COLONY, NEAR BHATTA NAGAR (WEST), LILUAH, HOWRAH-711 203 (2) INCOME TAX OFFICER, WARD-9(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-18, KOLKAT A, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.