M/s. Bhawani Merchants Pvt. Ltd., , Kolkata V. ITO, Ward - 5(3), Kolkata , Kolkata

ITA 1395/KOL/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8912 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 09-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K NAYAKA
• Keywords: Unexplained cash credit
• Section: 14A; 68; 263; 144

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.1395/KOL/2017 ASSESSMENT YEAR:2012-13 M/S BHAWANI MERCHANTS PVT. LTD., 9/12, LAL BAZAR STREET, 3 RD FLOOR, KOLKATA-700 001 [ PAN NO.AAECB 8589 L ] / V/S . INCOME TAX OFFICER, WARD-5(3), P-7, CHOWRINGHEE SQUARE, KOLKATA-69 /APPELLANT .. /RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI A.K.NAYAKA, CIT-DR /DATE OF HEARING 12-12-2018 /DATE OF PRONOUNCEMENT 26-12-2018 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-23, KOLKATAS ORDER DATED 0 3.05.2017 PASSED IN CASE NO.104/CIT(A)-23/W-5(3)/16-17 INVOLVING PROCEEDINGS U/S 144 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES BEHES T DESPITE THE FACT THAT THE REGISTRY HAS ALREADY SENT IT AN RPAD NOTICE DATED 31.10.2018 . IT IS ACCORDINGLY PROCEEDED EX PARTE. 2. WE NOW COME TO ASSESSEES PLEADINGS. IT HAS RAIS ED TWO SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL. ITS FORMER GRIEVANCE CHALLENGES COR RECTNESS OF BOTH THE LOWER AUTHORITIES ACTION TREATING ITS SHARE / PREMIUM AMOUNT OF 20,73,01,000/- AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT. ITS LATTER SUBSTANTIVE GROUND SEEKS TO DELETE U/S 14A R.W.S. RULE 8D DISALLOWANCE OF 18,650/- MADE IN THE COURSE OF ASSESSMENT AS UPHELD IN LOWER APPELLATE PROCEEDINGS. WE FIND THAT THE ASSESSEE HAD NOT PUT IN APPEARANCE IN LOWER APPELLATE ITA NO.1395/KOL/2017 ASSES SMENT YEAR: 2012-13 M/S BHAWANI MERCHANTS PVT. LTD. ITO WD.5(3), KOL. PAGE 2 PROCEEDINGS AS WELL. THE CIT(A)S ORDER IN PAGE 2 P ARA-3 HAS MADE IT CLEAR THAT THE THREE HEARING NOTICE(S) STOOD SERVED UPON THE ASSESSEE. L EARNED CIT-DR VEHEMENTLY CONTENDS DURING THE COURSE OF HEARING THE CIT(A) HAS RIGHTLY AFFIRMED ASSESSMENT FINDINGS ON TWO SUBSTANTIVE ISSUES THEREFORE. WE FIND NO MERIT IN R EVENUES ABOVE VEHEMENT CONTENTIONS IN SUPPORT OF BOTH THE LOWER AUTHORITIES ACTION ON SE C.68 AS WELL AS SEC. 14A R.W.S RULE 8D ISSUE. THE FACT REMAINS THAT THERE IS NO ADJUDICATI ON IN CIT(A)S ORDER ON RELEVANT FACTS OF THE CASE FOLLOWED BY POINTS OF DETERMINATION AND DETAIL ED DISCUSSION AS CONTEMPLATED U/S. 250(6) OF THE ACT. THE CIT HAS SIMPLY BRUSHED ASIDE ASSESS EES GRIEVANCE BY QUOTING THIS TRIBUNALS ORDER IN SUBHALAKSHMI VANIJYA PVT. LTD & OTHERS ITA NO.1104/KOL/2014 AFFIRMING CIT(A)S REVISION PROCEEDINGS IN CASE OF NON-INQUIRY ON PART OF THE ASSESSING OFFICER DURING THE COURSE OF SCRUTINY. WE REITERATE THAT THE INSTANT APPEAL I NVOLVES ASSESSMENT AND NOT REVISION PROCEEDINGS U/S 263 OF THE ACT. WE THEREFORE RESTOR E ASSESSEES BOTH SUBSTANTIVE GROUNDS BACK TO THE CIT(A) FOR AFRESH ADJUDICATION ON MERIT S AFTER SERVING THE RELEVANT NOTICE OF HEARING SUBJECT TO PAYMENT OF 10,000/- AS COST SINCE IT HAS NOT PUT IN APPEARANCE THROUGHOUT. 3. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 26/12/2018 SD/- SD/- ( &) (( &) (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS ) - 26/12/2018 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S BHAWANI MERCHANTS PVT. LTD. 9/12, LA L BAZAR STREET, 3 RD FL, KOLKATA-001 2. /RESPONDENT-ITO WARD NO.5(3), P-7, CHOWRINGHEE SQUA RE, KOLKATA-69 3. , - / CONCERNED CIT 4. - - / CIT (A) 5. . ((, , , /DR, ITAT, KOLKATA 6. 2 / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ,,