Chandra Nirman Pvt. Ltd., , Kolkata V. JCIT, Range - 2, Kolkata , Kolkata

ITA 1489/KOL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4633 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-09-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 11-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHRUBAJYOTI ROY JCIT SRDR
• Assessee Lawyers: ANKIT JALAN
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH VIRTUAL COURT A KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.1489/KOL/2018 ASSESSMENT YEAR: 2012-13 CHANDRA NIRMAN PVT.LTD. 85, METCALE STREET, 2 ND FLOOR, ROOM NO. 208, KOLKATA-700 013 [ PAN NO.AACCC 6689 C ] / V/S . JOINT COMMISSIONER OF INCOME TAX, RANGE-2, AAYKAR BHAWAN, 7 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI ANKIT JALAN, ADVOCATE /BY RESPONDENT SHRI DHRUBAJYOTI ROY, JCIT-SR-DR /DATE OF HEARING 29-09-2020 /DATE OF PRONOUNCEMENT 19-10-2020 /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)-1, KOLKATAS O RDER DATED 30.05.2018 PASSED IN CASE NO.750/CIT(A)-1/RAMGE-2/2015-16 INVOLVING P ROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE(S) PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIE S ACTION TREATING ITS SHARE CAPITAL / PREMIUM OF 20 LAKH INVOLVING OF FACE-VALUE OF 2,00,000/- AND PREMIUM OF 18 LAKHS; RESPECTIVELY AS UNEXPLAINED CASH CREDITS LIA BLE TO BE ADDED U/S 68 OF THE ACT. ITA NO.1489/KOL/2018 ASSESSMENT YEAR 2012-13 CHANDRA NIRMAN PVT. LTD. VS JCIT, RANG-2, KO L. PAGE 2 3. LEARNED COUNSEL REPRESENTING ASSESSEE VEHEMENTLY CONTENDED DURING THE COURSE OF HEARING THAT BOTH THE LOWER AUTHORITIES HAVE ER RED IN LAW AND ON FACTS IN TREATING ITS SHARE CAPITAL / PREMIUM IN ISSUE AS LACKING GENUINE NESS / CREDITWORTHINESS. HE SEEKS TO HIGHLIGHT THE FACT THAT ASSESSEE HAD PLACED ON RECO RD ALL THE CORRESPONDING DOCUMENTARY EVIDENCE IN THE NATURE OF AUDITED BALAN CE-SHEET(S), PROFIT AND LOSS ACCOUNT(S), COPY OF MUSTER DATA AS PER OFFICIAL WEB SITE OF MINISTRY OF CORPORATE AFFAIRS RELEVANT TO THE ASSESSEE AS WELL AS THE SHA RE SUBSCRIBER, INCOME TAX RETURN FILED FOR THE IMPUGNED ASSESSMENT YEAR, BANK STATEM ENT AND OTHER SIMILAR DOCUMENT(S) IN SUPPORT OF THE IMPUGNED SHARE APPLICATION. 4. MR. JALAN NEXT TOOK US TO ASSESSMENT ORDER DATED 28.03.2015 THAT THE ASSESSING OFFICER HAD ASKED FOR THE ASSESSEES DIRECTORS PER SONAL APPEARANCE ONLY ON 26.06.2015 FOR THE FIRST TIME AND FIXED THE NEXT HE ARING ON 10.03.2015 FOLLOWED BY SIMILAR NOTICE FOR APPEARANCE OF THE INVESTOR PARTY ON 16.03.2015. LEARNED COUNSEL ACCORDINGLY PLEADS IN VIEW OF THE SAID DETAILS THAT THE CONCERNED DIRECTOR HAD VERY WELL INFORMED THE ASSESSING OFFICER THAT HE WOULD NOT BE ABLE TO COME PRESENT SINCE OUT OF STATION. HE THEREFORE SUBMITS THAT THE ASSESSEE HAD NOT BEEN GIVEN AMPLE OPPORTUNITIES AS WELL TO PROVE GENUINENESS / CREDITWORTHINESS OF THE IMPUGNED SHARE APPLICATION / PREMIUM. LASTLY HE PRAYED FOR DELETING THE IMPUGNED ADDITION IN VIEW OF THE VARIOUS JUDICIAL PRECEDENTS AS WELL AS THAT SUCH CREDITS AR E NO MORE UNEXPLAINED SINCE SUPPORTED BY THE COGENT SUPPORTIVE EVIDENCE. 5. LEARNED DEPARTMENTAL REPRESENTATIVE HAS PLACED S TRONG RELIANCE ON BOTH THE LOWER AUTHORITIES MAKING THE IMPUGNED ADDITION. HIS CASE IS THAT MERE FILING OF DOCUMENTARY EVIDENCE DOES NOT ABSOLVE THE ASSESSEE FROM PROVING GENUINENESS / CREDITWORTHINESS OF THE INVESTOR PARTY CONCERNED. 6. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO TH E FOREGOING RIVAL PLEADINGS. SUFFICE TO SAY, BOTH THE LOWER AUTHORITIES HAVE TR EATED THE ASSESSEES SHARE APPLICATION / PREMIUM OF 20 LAKH COMING FROM M/S PARV SUPPLIERS P. LTD., AS UNEXPLAINED CASH CREDITS LACKING GENUINENESS / CREDITWORTHINESS. WE OBSERVE FROM A PERUSAL OF THE CASE ITA NO.1489/KOL/2018 ASSESSMENT YEAR 2012-13 CHANDRA NIRMAN PVT. LTD. VS JCIT, RANG-2, KO L. PAGE 3 FILE AS WELL AS WITH THE ABLE ASSISTANCE OF LEARNED AUTHORIZED REPRESENTATIVE THAT THE ASSESSING OFFICER HAD NOT AFFORDED ADEQUATE OPPORTU NITIES TO THE ASSESSEE FOR PRODUCING THE DIRECTOR(S) CONCERNED DURING THE COUR SE OF SCRUTINY (SUPRA). THAT BEING THE CASE, WE ARE OF THE OPINION THAT LARGER INTERES T OF JUSTICE WOULD BE MET IF THE ISSUE IS EXAMINED AFRESH AT THE ASSESSING OFFICERS END S O AS TO CARRY OUT THE NECESSARY FACTUAL VERIFICATION QUA GENUINENESS / CREDITWORTHINESS OF THE IMPUGNED SHA RE APPLICATION / PREMIUM COMING FROM THE SOLE INVESTOR INVOLVED IN THE INSTANT LIS WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. SUFFICE T O SAY, THE ASSESSEE SHALL ALSO BEEN AT LIBERTY TO FILE ON RECORD ALL NECESSARY PARTICULARS AS WELL AS RELEVANT JUDICIAL PRECEDENTS IN SUPPORT OF ITS CLAIM. ORDERED ACCORDINGLY. 7. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 19/10/2020 SD/- SD/- ( ') () ') (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS * - 19/10/2020 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-CHANDRA NIRMAN PVT. LTD., 85, METCALFE S TREET, 2 ND FLOOR ROOM NO. 208, KOLKATA-13 2. /RESPONDENT-JCIT, RANGE-2, AAYKAR BHAWAN, 7 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA -700 069 3. - . / CONCERNED CIT 4. . - / CIT (A) 5. / ))- , - /DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ -,