Gajgamini Trexim Pvt. Ltd., , Kolkata V. ITO, Ward - 9(2), Kolkata, Kolkata

ITA 1204/KOL/2018

AI Insights

Gajgamini Trexim Pvt. Limited appealed against the order of the Commissioner of Income Tax (Appeals)-3, Kolkata, which confirmed the addition of Rs.39,01,00,000 to the company's income for the Assessment Year 2012-2013. The addition was initially made by the Assessing Officer under section 68 of the Income Tax Act, citing the company's inability to substantiate the sources of the substantial share capital received. The Tribunal noted the absence of representation from the assessee at multiple hearings and upheld the lower authorities' decisions, emphasizing the lack of compliance and the failure to discharge the onus of proof regarding the legitimacy of the share capital.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128998 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 10-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 30-05-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 68

Judgement Text

ITA No. 1204/KOL/2018 Assessment Year: 2012-2013 Gajgamini Trexim Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Girish Agrawal, Accountant Member I.T.A. No. 1204/KOL/2018 Assessment Year: 2012-2013 Gajgamini Trexim Pvt. Limited,.............Appellant C/O. Subash Agarwal & Associates, Siddha Gibson, 1, Gibson Lane, 2 nd Floor, Suite-213, Kolkata-700069 [PAN: AAECG5510A] -Vs.- Income Tax Officer,...............................Respondent Ward-9(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: N o n e, appeared on behalf of the assessee Shri G. Hukugha Sema, CIT, appeared on behalf of the Revenue Date of concluding the hearing : January 11, 2023 Date of pronouncing the order : January 19, 2023 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals)-3, Kolkata dated 23.04.2018 passed for A.Y. 2012-13. ITA No. 1204/KOL/2018 Assessment Year: 2012-2013 Gajgamini Trexim Pvt. Limited 2 2. Though the assessee has taken three grounds of appeal, but its substantial grievance is involved only in one issue that the ld. CIT(Appeals) has erred in confirming the addition of Rs.39,01,00,000/-, which has been added by the ld. Assessing Officer with the aid of section 68 of the Income Tax Act. 3. In response to the notice of hearing, no one has come present on behalf of the assessee. Earlier Shri Siddharth Agarwal, Advocate put in appearance. However, thereafter he has submitted that Company has not given any instruction to him, more particularly he is unable to trace the Company. Thereafter fresh notices were issued and served but no one come present on behalf of the assessee. 4. With the help of ld. D.R., we have gone through the record carefully. A perusal of the assessment order would reveal that assessee has filed its return of income electronically on 25.09.2012 disclosing total income of Rs.2,022/-. On perusal of the financial statements, it revealed to the ld. Assessing Officer that assessee- company had raised fresh paid-up share capital of Rs.39,01,00,000/- including share premium. The ld. Assessing Officer thereafter did not devote much energy for explaining - who are the share applicants and how this money has come to the assessee, i.e. banking transaction. He simply made the addition of this amount ITA No. 1204/KOL/2018 Assessment Year: 2012-2013 Gajgamini Trexim Pvt. Limited 3 under section 68 of the Income Tax Act. The simple reason was that in response to the notice, no one appeared on behalf of the assessee. 5. Dissatisfied with the assessment order, the assessee filed an appeal before the ld. CIT(Appeals). The ld. 1 s t Appellate Authority has examined the issue in details. It found that assessee has received share capital alongwith premium from ten companies. He discussed about each share applicant. The ld. CIT(Appeals) has observed that with regard to the first applicant Shri Sawar Prasad Bjoria, the assessee did not submit anything. Similar is English Kumar Singh. With regard to the corporate rate entities, certain details have been submitted but analysis of those details revealed to the ld. CIT(Appeals) that none of the Company is having any asse t or any business. They are all paper companies. Thereafter ld. CIT(Appeals) discussed the position of law on this point in his detailed order. 6. After going through the well reasoned order of the ld. 1 s t Appellate Authority and in the absence of any compliance at the end of the assessee either before the ld. Assessing Officer or before the ld. CIT(Appeals) to discharge the onus, we are at loss to appreciate the case of the assessee. Therefore, we do not have any hesitation in concurring with the ld. 1 s t Appellate Authority. ITA No. 1204/KOL/2018 Assessment Year: 2012-2013 Gajgamini Trexim Pvt. Limited 4 7. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on 19 t h January, 2023. Sd/- Sd/- (Girish Agrawal) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 19 th day of January, 2023 Copies to :(1) Gajgamini Trexim Pvt. Limited, C/O. Subash Agarwal & Associates, Siddha Gibson, 1, Gibson Lane, 2 nd Floor, Suite-213, Kolkata-700069 (2) Income Tax Officer, Ward-9(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) Commissioner of Income Tax (Appeals)-3, Kolkata; (4) Commissioner of Income Tax- ; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.