M/S. Enfield Vyapaar Pvt. Ltd., Kolkata V. I.T.O., Ward - 1(1), Kolkata, Kolkata

ITA 142/KOL/2023

AI Insights

M/s. Enfield Vyapaar Pvt. Limited appealed against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of Rs.3,93,00,000 to their income for the assessment year 2008-09. This addition was initially made by the Assessing Officer under section 68 of the Income Tax Act, due to the assessee's failure to explain the source of the share capital and share premium received. The Tribunal noted that the assessee did not respond to notices from both the Assessing Officer and the CIT(Appeals), leading to ex-parte orders. The Tribunal, after reviewing the limited available records and the absence of any plausible explanation or evidence from the assessee, upheld the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129013 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 25-04-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 22-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 147; 131; 68; 263; 144; 143(3)

Judgement Text

ITA No. 142/KOL/2023 A.Y. 2008-2009 M/s. Enfield Vyapaar Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President & Shri Rajesh Kumar, Accountant Member I.T.A. No. 142/KOL/2023 Assessment Year: 2008-2009 M/s. Enfield Vyapaar Pvt. Limited,..............Appellant P-58/1, Strand Bank Road, Ground Floor, Opp. Burra Bazar, Circular Road, Kolkata-700006 [PAN: AABCE9251H] -Vs.- Income Tax Officer,.................................Respondent Ward-1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: N o n e, appeared on behalf of the assesseee Shri P.P. Barman, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing : April 26, 2023 Date of pronouncing the order : April 27, 2023 O R D E R Per Shri Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 26.12.2022 passed for A.Y. 2008-09. ITA No. 142/KOL/2023 A.Y. 2008-2009 M/s. Enfield Vyapaar Pvt. Limited 2 2. The assessee has taken two grounds of appeal. However, its grievances revolve around a single issue, namely ld. CIT(Appeals) has erred in confirming the addition of Rs.3,93,00,000/-, which was added by the ld. Assessing Officer with the aid of section 68 of the Income Tax Act. 3. Brief facts of the case are that the assessee has filed its return of income electronically on 12.08.2008 showing current year ‘loss’ of Rs.950/-. Original assessment order was passed under section 147 read with section 143(3) on 31.12.2010. Ld. Commissioner took cognizance under section 263 of the Income Tax Act and set aside the assessment order passed under section 147 read with section 143(3) vide his order dated 12.03.2013. In pursuance to this order of the ld. CIT passed under section 263, a fresh assessment order has been passed on 24.03.2014. This is an ex-parte assessment order under section 144 of the Income Tax Act, i.e. according to the best judgment of the ld. Assessing Officer. It revealed that the assessee has received fresh share capital including share premium of Rs.3,93,00,000/-. In the original assessment order, the ld. Assessing Officer has determined the income at Rs.28,451/- and failed to take cognizance of this fact. The ld. Commissioner has set aside the original assessment order dated 31.12.2010 and directed the ld. Assessing Officer to carry out investigation on seven points, which are contained in paragraph no. 2.2 of the assessment order. The ld. Assessing Officer thereafter carried out the investigation. He issued summons under section 131 of the Income Tax Act upon the Directors of the assessee-company. ITA No. 142/KOL/2023 A.Y. 2008-2009 M/s. Enfield Vyapaar Pvt. Limited 3 Somehow all these summons and notices issued by him returned back ‘un-served’. Hence, he made the addition of Rs.3,93,00,000/-. 4. Dissatisfied with the assessment order, the assessee carried the matter in appeal before the ld. CIT(Appeals). The assessee did not respond to the notices issued by the ld. CIT(Appeals), hence in an ex-parte order, ld. CIT(Appeals) has confirmed the addition. 5. The Tribunal has issued notice to the asseessee through Registered Post with acknowledgment, which has returned back with the postal remark “no such person in the given address”. The second notice has also been returned with the same remark. Hence, under the compelling circumstances, we proceed to decide the appeal ex-parte. 6. With the assistance of ld. D.R., we have gone through the record carefully. We find that the assessee has received share capital and share premium, but it did not submit any detail justifying this transaction demonstrating the identity of the applicants as well as their creditworthy and genuineness of the transaction. It has not submitted anything before the ld. CIT(Appeals), therefore, it is very difficult for the Tribunal to discuss the details. There are very limited information available on the record. There is no denial to the fact that fresh capital has been introduced by the assessee and it failed to explain the source of such capital with the plausible evidence. Therefore, we do not have any hesitation in confirming the finding of the ITA No. 142/KOL/2023 A.Y. 2008-2009 M/s. Enfield Vyapaar Pvt. Limited 4 revenue authorities. This appeal is devoid of any merit, hence dismissed. 7. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on April 27, 2023. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the 27 th day of April, 2023 Copies to :(1) M/s. Enfield Vyapaar Pvt. Limited, P-58/1, Strand Bank Road, Ground Floor, Opp. Burra Bazar, Circular Road, Kolkata-700006 (2) Income Tax Officer, Ward-1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre (NFAC), Delhi (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.