Dhanrashi Vintrade Pvt. Ltd., , Kolkata V. ITO, Ward - 6(1), Kolkata , Kolkata

ITA 1194/KOL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9225 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 31-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Opportunity of being heard
• Section: 143(3); 201; 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKAT A BENCH B, KOLKATA [BEFORE SHRI P. M. JAGTAP, HONBLE VICE PRESIDENT & SMT. MADHUMITA ROY, HONBLE JUDICIAL MEMBER] [THROUGH VIRTUAL COURT] ITA NO. 1194/KOL/2018 ASSESSMENT YEAR: 2012-13 DHANRASHI VINTRADE PVT. LTD.... .....................APPELLANT ROOM NO. 307, 3 RD FLOOR, 56, CLIVE SQUARE, 34, IDRA KUMAR KARNANI STREET, KOLKATA 700 012. [PAN : AADCD 7192 E] ITO, WARD 6(1), KOLKATA............................ ................................................... ..................RESPONDENT P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. APPEARANCES BY: SHRI MIRAJ D SHAH, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE SMT. RANU BISWAS, ADDL. CIT, APPEARING ON BEHALF OF T HE REVENUE DATE OF CONCLUDING THE HEARING : AUGUST 03, 2020 DATE OF PRONOUNCING THE ORDER : AUGUST 12, 2020 ORDER PER MADHUMITA ROY, JM THE INSTANT APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 27.03.2018 PASSED BY THE LD . CIT(A)- 7, KOLKATA ARISING OUT OF THE ORDER DATED 16.03.2015 P ASSED BY THE ITO WARD 6(1), KOLKATA U/S 143(3) OF THE INCOME TAX ACT , 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR A.Y. 201 2-13. 2. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS FOUND THAT THE ASSESSEE COMPANY FOR THE A.Y. 2012-13 ISSUED IT S SHARES TO PRIMARILY DIFFERENT PRIVATE LIMITED COMPANIES AGAIN ST HIGH PREMIUM. SUMMONS U/S 131 OF THE ACT THOUGH WERE SEND TO THE DIRECTORS OF INVESTING COMPANIES, NONE APPEARED. ULTIMATELY, THE LD. AO ON THE BASIS OF RECORDS AVAILABLE BEFORE HIM FINALISED THE ASSESSMENT UPON 2 ITA NO. 1194/KOL /2018 ASSESSMENT YEAR 2012-13 DHANRASHI VINTRADE PVT. LT D. MAKING ADDITION OF RS. 1,87,89,230/- WHICH WAS, IN TURN, CONFIRMED BY THE LD. CIT(A) THOUGH BY AN EX-PARTE ORDER. 3. AT THE TIME OF HEARING OF THE INSTANT APPEAL, TH E LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE NOTICE OF HEARING THOUGH ISSUED THE SAME WAS RETURN ED BY THE POSTAL AUTHORITY WITH THE REMARKS INSUFFICIENT ADDRESS RE TURNED TO SENDER. SUBSEQUENT NOTICES WERE AGAIN RETURNED BY THE POSTA L AUTHORITY WITH THE REMARK NOT KNOWN. HOWEVER, THE LEARNED COUNSE L UNDERTAKES TO PRODUCE THE DIRECTORS OF THOSE COMPANIES BEFORE THE LD. AO AND, THEREFORE, PRAYS FOR A DIRECTION FOR SETTING ASIDE THE ISSUE TO THE FILE OF THE LD. AO TO RE-ADJUDICATE THE ISSUE UPON CONSIDER ING THE PRESENCE OF THE DIRECTORS AND THE FURTHER RECORDS TO BE MADE AV AILABLE BEFORE HIM, IF REQUIRED. 4. ON THE OTHER HAND, THE LD. DR APPEARING FOR THE REVENUE SUBMITTED THAT THE ASSESSEE HAS NOT BEEN ABLE TO GI VE ANY SATISFACTORY COMPLIANCE ON THE PART OF THE CONCERNED SHARE SUBSC RIBERS AND ULTIMATELY HAVING NO OTHER ALTERNATIVE THE EX-PARTE ORDER WAS PASSED CONFIRMING THE ADDITION MADE BY THE LD. AO. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS MADE BY THE RESPECTIVE PARTIES AND WE HAVE ALSO PERUSED THE RELEVANT MATER IALS AVAILABLE ON RECORD INCLUDING THE ORDERS PASSED BY THE CO-ORDINA TE BENCH IN ITA NO. 570/KOL/2018 IN THE MATTER OF VRIDDHI POWER PVT . LTD. VS ITO ON THE IDENTICAL ISSUE AS SUBMITTED BY THE LD. AR. WE HAVE FURTHER CONSIDERED THE JUDGMENT PASSED BY THE COORDINATE BENCH IN THE MATTER OF VRIDDHI POWER PVT . LTD. VS ITO IN 3 ITA NO. 1194/KOL /2018 ASSESSMENT YEAR 2012-13 DHANRASHI VINTRADE PVT. LT D. ITA NO. 570/KOL/2018. WE FIND IN THE IDENTICAL SITU ATION THE COORDINATE BENCH HAS BEEN PLEASED TO PASS ORDER DIR ECTING THE LD. A.O TO ADJUDICATE THE MATTER AFRESH BY PROVIDING A FURT HER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. WE, THEREFORE, TAKING INTO CONSIDERATION THE ENT IRE ASPECT OF THE MATTER, THE UNDERTAKING GIVEN BY THE LD. AR FOR PRO DUCING THE DIRECTOR OF THE INVESTING COMPANIES BEFORE THE REVE NUE AND PARTICULARLY UPON CONSIDERING THE JUDGMENT RELIED U PON, RESPECTFULLY RELYING UPON THE SAME, FIND IT FIT AND PROPER TO RE STORE THE ISSUE TO THE FILE OF THE LD. ASSESSING OFFICER FOR DECIDING THE SAME AFRESH UPON GIVING AN OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIA TE ITS CASE AND ALSO TAKING INTO CONSIDERATION THE PRESENCE OF THE LD. D IRECTORS OF THE COMPANIES AND THE EVIDENCE ON RECORD OR ANY OTHER E VIDENCE WHICH THE ASSESSEE MAY CHOOSE TO FILE AT THE TIME OF HEAR ING OF THE MATTER AND TO PASS ORDER IN ACCORDANCE WITH LAW. WE, FURTH ER MAKE IT CLEAR THAT THE ASSESSEE WILL ALSO COOPERATE WITH THE REVE NUE TO ADJUDICATE THE MATTER IN ITS PROPER PERSPECTIVE. HENCE ASSESSE ES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST, 2020. SD/- SD/- (P.M. JAGTAP) (MADHUMITA ROY) VICE PRESIDENT JU DICIAL MEMBER DATED: 12/08/2020 BISWAJIT, SR. PS 4 ITA NO. 1194/KOL /2018 ASSESSMENT YEAR 2012-13 DHANRASHI VINTRADE PVT. LT D. COPY OF ORDER FORWARDED TO: 1. DHANRASHI VINTRADE PVT. LTD., ROOM NO. 307, 3 RD FLOOR, 56, CLIVE SQUARE, 34, IDRA KUMAR KARNANI STREET, KOLKATA 70 0 012. 2. ITO, WARD 6(1), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR ITAT, KOLKATA