M. S. Projects Pvt. Ltd., Purba Medinipur V. ITO, WD-27(1), HALDIA, Purba Medinipur

ITA 1276/KOL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1589 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 06-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJOY MUKHERJEE
• Assessee Lawyers: MIHIR BANDYOPADHTAT
• Keywords: Unexplained cash credit
• Section: 143(3); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, AM] I.T.A. NO. 1276/KOL/2016 ASSESSMENT YEAR: 2010-11 M/S. M.S. PROJECTS PVT. LTD..............................APPELLANT RAMPUR, CHAITANYAPUR, SUTAHATA, HALDIA, PURBA MEDINIPUR 721 645 [PAN : AAFCM 8776 P] INCOME TAX OFFICER.......................................RESPONDENT WARD NO. 27(1), HALDIA, PURBA MEDINIPUR 721 602. APPEARANCES BY: SHRI MIHIR BANDYOPADHTAT, FCA APPEARING ON BEHALF OF THE ASSESSEE. SHRI SANJOY MUKHERJEE, ADDL. CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JANUARY 29, 2018 DATE OF PRONOUNCING THE ORDER : JANUARY 31, 2018 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS) -7, KOLKATA DATED 28.04.2016 PASSED EX-PARTE DISMISSING THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF BRICKS AS WELL AS CONSTRUCTION. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 13.10.2010 DECLARING A TOTAL INCOME OF RS. 7,20,479/- IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN APPEAL ORDER DATED 20.03.2013, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE ASSESSEE AT RS. 38,20,479/- AFTER MAKING AN ADDITION OF RS. 31,00,000/- ON ACCOUNT OF SHARE APPLICATION MONEY BY TREATING THE SAME AS UNEXPLAINED CASH CREDIT UNDER SECTION 68. 2 I.T.A. NO. 1276/KOL/2016 A.Y. 2010-11 M.S. PROJECTS PVT. LTD. 3. AGAINST THE ORDER PASSED BY THE A.O. UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND SINCE THERE WAS NO SATISFACTORY COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE APPEAL FOR SAID HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 28.04.2016 PASSED EX-PARTE. AGGRIEVED BY THE SAME, THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE ERSTWHILE MANAGING DIRECTOR OF THE ASSESSEE COMPANY SHRI SAMBHU NATH DAS, AGED 68 YEARS WAS SUFFERING FROM SERIOUS ILLNESS DURING THE RELEVANT PERIOD AND DUE TO HIS PROLONGED ILLNESS, CERTAIN IMPORTANT DOCUMENTS RELATED TO THE MATTER COULD NOT BE MADE AVAILABLE WHICH RESULTED IN NON-COMPLIANCE BEFORE THE LD. CIT(A). SINCE THIS SUBMISSION MADE BY THE ASSESSEE COMPANY IN WRITING IS DULY SUPPORTED BY THE RELEVANT MEDICAL CERTIFICATES I AM SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON-COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY THE LD. CIT(A) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING BEFORE HIM. AS FURTHER SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE RELEVANT DOCUMENTS ARE NOW AVAILABLE WITH THE ASSESSEE COMPANY AND IF THE MATTER IS SENT BACK TO THE LD. CIT(A) FOR FRESH CONSIDERATION, THE SAME CAN BE PRODUCED BEFORE THE LD. CIT(A) FOR CONSIDERATION. THE LEARNED DR, HOWEVER, HAS SUBMITTED THAT SINCE THE SAID DOCUMENTS WERE NOT FILED BY THE ASSESSEE COMPANY BEFORE THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE MATTER MAY BE SENT BACK TO THE A.O. FOR GIVING HIM AN OPPORTUNITY TO VERIFY THE SAME. I FIND MERIT IN 3 I.T.A. NO. 1276/KOL/2016 A.Y. 2010-11 M.S. PROJECTS PVT. LTD. THIS CONTENTION OF THE LEARNED DR AND SINCE THE LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO NOT RAISED ANY OBJECTION IN THIS REGARD, I SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE AND RESTORE THE MATTER TO THE FILE OF THE A.O. FOR DECIDING THE ISSUE RELATING TO THE ADDITION OF RS. 31,00,000/- UNDER SECTION 68 ON ACCOUNT OF UNEXPLAINED SHARE APPLICATION MONEY AFRESH AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY, 2018. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER DATED: 31/01/2018 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. M/S. M.S. PROJECTS PVT. LTD., RAMPUR, CHAITANYAPUR, SUTAHATA, HALDIA, PURBA MEDINIPUR. 2. ITO, WARD 27(1), HALDIA, PURBA MEDINIPUR 721 602. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA