Remote Trading Pvt. Ltd., , Kolkata V. ITO, Ward - 3(3), Kolkata , Kolkata

ITA 1330/KOL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5244 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 18-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SITAL CHANDRA DAS
• Assessee Lawyers: S M SURANA; A BANSAL
• Section: 143(3); 68

Judgement Text

I.T.A. NO 1330/KOL/2018 ASSESS MENT YEAR: 2012-2013 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) I.T.A. NO. 1330/KOL/2018 ASSESSMENT YEAR: 2012-2013 REMOTE TRADING PVT. LIMITED,....................... ........................APPELLANT C/O. PCM GROUP, 10C, MIDDLETON ROW, DABRIWALA HOUSE, 4 TH FLOOR, KOLKATA-700 071 [PAN: AADCR 5757 R] -VS.- INCOME TAX OFFICER,................ ....RESPONDENT WARD-3(3), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI S.M. SURANA, ADVOCATE & SHRI A. BANSAL, A.R., FOR THE APPELLANT SHRI SITAL CHANDRA DAS, ADDL. CIT, SR. D.R. , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : OCTOBER 22, 2018 DATE OF PRONOUNCING THE ORDER : OCTOBER 22, 2018 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKATA DAT ED 27.02.2018, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE EX-PARTE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION D ECLARING A TOTAL INCOME OF RS.7,80,700/-. DURING THE COURSE OF ASSES SMENT PROCEEDINGS, THE CLAIM OF THE ASSESSEE OF HAVING RECEIVED SHARE CAPITAL AND SHARE PREMIUM AMOUNT AGGREGATING TO RS.32,00,000/- WAS EX AMINED BY THE ASSESSING OFFICER. IN THIS REGARD, THE ASSESSEE WAS REQUIRED BY THE ASSESSING OFFICER TO APPEAR PERSONALLY BEFORE HIM A LONG WITH ALL THE PRINCIPAL OFFICERS OR DIRECTORS OF THE INVESTOR COM PANIES FOR THE PURPOSE I.T.A. NO 1330/KOL/2018 ASSESS MENT YEAR: 2012-2013 PAGE 2 OF 3 OF VERIFYING THEIR IDENTITY AND CREDITWORTHINESS AS WELL AS GENUINENESS OF THE RELEVANT TRANSACTIONS. THE ASSESSEE, HOWEVER, F AILED TO COMPLY WITH THE SAID REQUIREMENT AND CONSEQUENTLY THE AMOUNT OF RS.32,00,000/- CLAIMED TO BE RECEIVED BY THE ASSESSEE ON ACCOUNT O F SHARE CAPITAL AND SHARE PREMIUM WAS ADDED BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE BY TREATING THE SAME AS UNEXPLAINED CA SH CREDIT UNDER SECTION 68 IN THE ASSESSMENT COMPLETED UNDER SECTIO N 143(3) VIDE AN ORDER DATED 23.03.2015. 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) CHALLENGING THE ADDITION OF RS.32,00,0 00/- MADE BY THE ASSESSING OFFICER UNDER SECTION 68. THERE WAS, HOWE VER, NO SATISFACTORY AND PROPER COMPLIANCE ON THE PART OF THE ASSESSEE T O THE NOTICES ISSUED BY THE LD. CIT(APPEALS) FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME. THE LD. CIT(APPEALS), THEREFORE, DISMISSED TH E APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 27.02.2018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), 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. BESIDES EXPL AINING THE NON- COMPLIANCE ON THE PART OF THE ASSESSEE BEFORE THE A SSESSING OFFICER AS WELL AS BEFORE THE LD. CIT(APPEALS), THE LD. COUNSE L FOR THE ASSESSEE HAS CONTENDED THAT THE ENTIRE AMOUNT IN QUESTION TOWARD S SHARE CAPITAL AND SHARE PREMIUM WAS RECEIVED BY THE ASSESSEE-COMPANY FROM ITS THREE DIRECTORS AND THE RELEVANT DETAILS AND DOCUMENTS TO VERIFY THEIR IDENTITIES AND CAPACITY WERE ALREADY AVAILABLE ON RECORD BEFOR E THE ASSESSING OFFICER. HE HAS CONTENDED THAT SINCE ALL THE SAID T HREE DIRECTORS WERE ASSESSED TO TAX AND THE INVESTMENT MADE BY THEM IN SHARE CAPITAL AND SHARE PREMIUM OF THE ASSESSEE-COMPANY WAS DULY REFL ECTED IN THEIR RETURNS OF INCOME, THE ADDITION MADE BY THE ASSESSI NG OFFICER UNDER SECTION 68 IS NOT SUSTAINABLE. THE LD. D.R., ON THE OTHER HAND, HAS I.T.A. NO 1330/KOL/2018 ASSESS MENT YEAR: 2012-2013 PAGE 3 OF 3 CONTENDED THAT THIS SUBMISSION MADE ON BEHALF OF TH E ASSESSEE FOR THE FIRST TIME BEFORE THE TRIBUNAL REQUIRES VERIFICATIO N BY THE ASSESSING OFFICER, ESPECIALLY WHEN THE SAME WAS NOT MADE BY T HE ASSESSEE BEFORE THE ASSESSING OFFICER INSPITE OF SUFFICIENT OPPORTU NITY AFFORDED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. I FIND MERIT IN T HIS CONTENTION OF THE LD. D.R. AND SINCE THE LD. COUNSEL FOR THE ASSESSEE HAS ALSO NOT RAISED ANY OBJECTION IN THIS REGARD, I SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THIS ISSUE AND RESTORE THE MATTER T O THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH ON M ERIT AFTER GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON OCTOBER 22, 2 018. SD/- (P.M. JAGTAP) VICE-PRESIDENT (KZ) KOLKATA, THE 22 ND DAY OF OCTOBER, 2018 COPIES TO : (1) REMOTE TRADING PVT. LIMITED, C/O. PCM GROUP, 10C, MIDDLETON ROW, DABRIWALA HOUSE, 4 TH FLOOR, KOLKATA-700 071 (2) INCOME TAX OFFICER, WARD-3(3), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKA TA, (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.