ITO, WD-5(2), KOLKATA, Kolkata V. M/s Pioneer Veneers Pvt. Ltd., Kolkata

ITA 1178/KOL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4514 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 15-09-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: S K TULSIYAN
• Section: 263

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.1178/KOL/2015 [ASSESSMENT YEAR: 2008 - 09] APPELLANT BY SH. S.DASGUPTA, ADDL. CIT DR RESPONDENT BY SH. S.K.TULSIYAN, ADVOCATE DATE OF HEARING 12.07.2018 DATE OF PRONOUNCEMENT 0 8 .0 8 .2018 ORDER PER S.S . VISWANETHRA RAVI , JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 29.06.2015 PASSED BY CIT(A) - 2, KOLKATA FOR AY 2008 - 09. 2. THOUGH IT IS AN APPEAL O F THE REVENUE, LD. AR SOUGHT PERMISSION TO SUBMIT FIRST AND REFERRED TO ORDER DATED 18.03.2014 AND PLACED ON RECORD. THE CIT, KOLKATA - II, KOLKATA U/S 263 OF THE ACT SET ASIDE THE ORDER DATED 11.05.2011 PASSED BY THE AO U/S 143/1 43(3) OF THE ACT AND DIRECTED THE AO TO CONDUCT ASSESSMENT DENOVO AND REFERRED TO PAGE NO.6 OF THE SAID ORDER. THE LD. AR SUBMITS THAT AS PER THE ORDER U/S 263 OF THE ACT, AO WAS REQUIRED TO EXAMINE GENUINENESS AND SOURCE OF SHARE CAPITAL IN RESPECT OF EAC H AND EVERY SHAREHOLDER BY CON DUCTING INDEPENDENT INQUIRY. T HE AO FAILED TO CONDUCT THE INQUIRY IN THE MANNER THE CIT DIRECTED HIM TO DO SO U/S 263 OF THE ACT AND URGE D TO REMAND THE MATTER TO THE FILE OF THE AO. THE LD.DR DID NOT CONTROVERT THE SAME. ITO, WARD - 5(2), P - 7, CHOWRINGHEE SQUARE, 8 TH FLOOR, R OOM NO.6, KOLKATA - 700069. VS M/S PIONEER VENEERS PVT.LTD., 18, RABINDRA S A RANI, 7 TH FLOOR, PODDAR COURT, KOLKATA - 700001. PAN - AABCP8332L (APPELLANT) (RESPONDENT) ITA NO.1 178 /KOL/201 5 [ASSESSMENT YEAR: 20 08 - 09 ] PAGE | 2 3. HEARD BOTH AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND WHILE SETTING ASIDE THE ORDER DATED 11.05.2011, THE CIT DIRECTED THE AO TO CONDUCT INQUIRY IN RESPECT OF EACH AND EVERY SHAREHOLDER BY CONDUCTING INDEPENDENT INQUIRY AS SET OUT WHICH IS EXTRACTED FROM THE ORDER DATED 18.03.2014 PASSED BY THE CIT U/S 263 OF THE ACT AS UNDER: - I) EXAMINE THE GENUINENESS AND SOURCE OF SHARE CAPITAL, NOT ON A TEST CHECK BASIS, BUT IN RESPECT OF EACH AND EVERY SHAREHOLDER BY CONDUCTING INDEPENDENT ENQUIRY NOT THR OUGH THE ASSESSEE. THE BANK ACCOUNT O F T H E ENTIRE PERIOD SHOULD BE EXAMINED IN THE COURSE OF VERIFICATION TO FIND OUT THE MONEY TRAIL OF THE SHARE CAPITAL. II) 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. III) 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. KEEPING IN VIEW THE SUBMISSIONS OF THE LD. AR AND LD. DR AND THE ORDER PASSED BY CIT U/S 263, WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF THE AO TO CONDUCT A DETAILED INQUIRY AS INDICATED ABOVE. GROUNDS RAISED BY THE REVENUE ARE 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 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.1 178 /KOL/201 5 [ASSESSMENT YEAR: 20 08 - 09 ] PAGE | 3 COPY FORWARDED TO: 1. APPELLANT - ITO, WARD - 5(2), P - 7, CHOWRINGHEE SQUARE, 8 TH FLOOR, ROOM NO.6, KOLKATA - 700069. 2. RESPONDENT - M/S PIONEER VENEERS PVT.LTD., 18, RABINDRA S A RANI, 7 TH FLOOR, PODDAR COURT, KOLKATA - 700001. 3. CIT - KOLKATA 4. CIT(APPEALS) - KOLKATA 5. DR: ITAT - KOLKATA BENCHES SR.P.S./H.O.O ITAT, KOLKATA