DCIT, CC-XIX, KOLKATA, Kolkata V. Ramshila Enterprises Private Limited, Kolkata

ITA 1551/KOL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1027 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 05-06-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 22-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOULEAN HANGSHING
• Assessee Lawyers: RAM RATAN MODI
• Keywords: Additional evidence
• Section: 143(3); 263

Judgement Text

ITA NO.1551/KOL/2014 RAMSHILA ENTERPRISES PVT. LTD. A.Y.2008-09 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [BEFORE HONBLE SRI N.V.VASUDEVAN, JM & SHRI M.BA LAGANESH, AM] I.T.A NO.1551/KOL/2014 ASSESSMENT YEAR : 2008-09 D.C.I.T., CENTRAL CIRCLE-XIX, -VS.- RAMSHI LA ENTERPRISES PVT. LTD. KOLKATA KOLKATA [PAN : AABCR 3063 J] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI GOULEAN HAN GSHING, CIT(DR) FOR THE RESPONDENT : SHRI RAM RATAN MODI , FCA DATE OF HEARING : 20.11.2017. DATE OF PRONOUNCEMENT : 22.11.2017. ORDER PER N.V.VASUDEVAN, JM THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER DATED.30.05.2014 OF. C.I.T.(A)-CENTRAL-II, KOLKATA RELATING TO A.Y. 2008 -09. 2. GROUNDS OF APPEAL RAISED BY THE REVENUE READ AS FOLLOWS :- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD (IT (A) HAS ERRED IN LAW IN DELETING THE ADDITION U/S.68 O F THE IT ACT ACT ON ACCOUNT OF SHARE CAPITAL AMOUNTING TO RS.38.87 CRORES WITHOU T APPRECIATING THE FACT THAT THE MODE OF PAYMENT CANNOT BE SACROSANCT FOR TREATI NG A BOGUS TRANSACTION AS A GENUINE ONE AS THE PRINCIPLE LAID DOWN BY THE JUDIC IAL DECISION LIKE (IT - VS. - PRECISON FINANCE PVT. LTD. [208 ITR 465 (CAL)] AND NIZAM WOOL AGENCY 193 ITR 318 (ALL). 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD (IT (A) HAS ERRED IN LAW IN DELETING THE ADDITION U/S.68 OF T HE IT ACT ACT ON ACCOUNT OF SHARE CAPITAL AMOUNTING TO RS.38.87 CRORES WITHOUT APPR ECIATING THE FACT THAT THE CIRCUMSTANCES SURROUNDING THE TRANSACTIONS PROVED THE TRANSACTIONS TO BE BOGUS. 3. THAT THE DEPARTMEN1 CRAVES LEAVE TO ADD, MODIF Y OR ALTER ANY OF THE GROUNDS OF APPEAL AND/OR ADDUCE ADDITIONAL EVIDENCE AT TH E TIME OF HEARING OF THE CASE. ITA NO.1551/KOL/2014 RAMSHILA ENTERPRISES PVT. LTD. A.Y.2008-09 2 3. THE ASSESSEE IS A COMPANY. AN ORDER OF ASSESS MENT U/S 143(3) R.W.S.144 OF THE INCOME TAX ACT, 1961 (ACT) DATED 21.05.2010 DETERM INING THE TOTAL INCOME OF THE ASSESSEE AT RS.20,447/- AGAINST THE RETUNED INCOME OF RS.NIL WAS PASSED BY THE AO. THE CIT-KOLKATA-II, KOLKATA PASSED AN ORDER U/S 263 OF THE ACT DATED 26.03.2013 SETTING ASIDE THE ORDER OF ASSESSMENT DATED 21.05.2 010 FOR FRESH ADJUDICATION BY THE AO WITH CERTAIN DIRECTIONS. AGAINST THE AFORESAID O RDER OF CIT PASSED U/S 263 OF THE ACT DATED 26.03.2013 THE ASSESSEE PREFERRED AN APPE AL BEFORE THE HONBLE TRIBUNAL. THE TRIBUNAL VIDE ITS ORDER DATED 30.07.2015 CONFIR MED THE ORDER OF CIT(A). 4. THE AO IN PURSUANCE OF THE ORDER DATED 26.03 .2013 BASED ON CIT U/S 263 OF THE ACT PASSED AN ORDER OF ASSESSMENT DATED 31.10.2014 U/S 147/143(3)/263. AGAINST THE ADDITION MADE IN THE AFORESAID ORDER OF ASSESSMENT THE ASSESSEE PREFERRED APPEAL BEFORE CIT(A). THE CIT(A) BY THE IMPUGNED ORDER DEL ETED THE ADDITION MADE BY THE AO. AGAINST THE AFORESAID ORDER OF CIT(A) THE REVEN UE IS IN APPEAL BEFORE THE TRIBUNAL. 5. AT THE TIME OF HEARING OF THE APPEAL IT WAS BROUGHT TO THE NOTICE THAT AS AGAINST THE ORDER OF THE TRIBUNAL DATED 30.07.2015 UPHOLDIN G THE ORDER DATED 26.03.2013 PASSED U/S 263 OF THE ACT, THE ASSESSE PREFERRED AN APPEAL BEFORE THE HONBLE CALCUTTA HIGH COURT. THE HONBLE CALCUTTA HIGH COURT IN G.A. NO.3929 OF 2015 IN ITA NO.181 OF 2015 JUDGEMENT DATED 08.03.2016 REPORTED IN 383 ITR 546(CAL) WAS PLEASED TO REVERSE THE ORDER OF THE TRIBUNAL AND QUASH THE ORD ER U/S 263 OF THE ACT. IN VIEW OF THE DECISION OF THE HONBLE CALCUTTA HIGH COURT QUASHIN G THE ORDER U/S.263 OF THE ACT, THE VERY BASIS ON WHICH THE PRESENT PROCEEDINGS COM MENCED NAMELY THE ORDER U/S 263 OF THE ACT IS NO LONGER IN EXISTENCE, THE ORDER OF ASSESSMENT DATED 31.03.2014 IS HEREBY ANNULLED. SINCE THE ORDER OF ASSESSMENT IS A NNULLED THE OTHER PROCEEDINGS INCLUDING THE PROCEEDINGS CULMINATING FROM PASSING OF THE IMPUGNED ORDER WILL HAVE NO LEGS TO STAND. THE APPEAL OF THE REVENUE IS THER EFORE DISMISSED AS INFRACTUOUS. ITA NO.1551/KOL/2014 RAMSHILA ENTERPRISES PVT. LTD. A.Y.2008-09 3 6. IN THE RESULT THE APPEAL BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 22.11.2017. SD/- SD/- [M.BALAGANESH] [ N.V.VASUDEVAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22.11.2017. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.RAMSHILA ENTERPRISES PVT. LTD., 27, BRABOURNE ROA D, NARAYANI BUILDING, 5 TH FLOOR, ROOM NO.503, KOLKATA-700001. 2. D.C.I.T., CENTRAL CIRCLE-XIX, KOLKATA. 3. C.I.T. (A)-CENTRAL-II, KOLKATA. 4. C.I. T.-CENTRAL-II, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SR. PRIVA TE SECRETARY HEAD OF OFFICE/DDO,, ITAT, KOLKATA BENCHES