M/s. Sapphire Markcom Pvt. Ltd., , Jamshedpur V. ITO, Ward - 9(4), Kolkata , Kolkata

ITA 1594/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8497 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 25-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RADHEY SHYAM
• Assessee Lawyers: S SURANA
• Keywords: Unexplained cash credit; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 143(3); 68

Judgement Text

I.T.A. NO. 1594/KOL/2018 ASSESSMENT YEAR: 2012-2013 M/S. SAPPHIRE MARKCOM PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NOS. 1594/KOL/2018 ASSESSMENT YEAR: 2012-2013 M/S. SAPPHIRE MARKCOM PVT. LIMITED,................ .............................. APPELLANT C/O. UNION BIKE, SATABDI TOWER, 1, SNP AREA, SAKCHI , JAMSHEDPUR-831 001 [PAN: AAPCS 5215 H] -VS.- INCOME TAX OFFICER,......................... .......................RESPONDENT WARD-9(4), KOLKATA, AAYAKAR BHAWAN P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI S. SURANA, ADVOCATE, FOR THE APPELLANT SHRI RADHEY SHYAM, CIT (D.R.), FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : APRIL 08, 2019 DATE OF PRONOUNCING THE ORDER : APRIL 08, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KOLKATA ZONE) :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-18, KOLKATA DA TED 28.06.2018 PASSED EX-PARTE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION O N 17.09.2012 DECLARING TOTAL INCOME OF RS.19,38,530/-. IN THE AS SESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 19.03.2015 , THE TOTAL INCOME OF I.T.A. NO. 1594/KOL/2018 ASSESSMENT YEAR: 2012-2013 M/S. SAPPHIRE MARKCOM PVT. LIMITED 2 THE ASSESSEE WAS DETERMINED BY THE ASSESSING OFFICE R AT RS.2,50,68,530/- AFTER MAKING AN ADDITION OF RS.2,31,30,000/- UNDER SECTION 68 BY TREATING THE SHARE CAPITAL OF RS.2,31,30,000/- RECEIVED BY T HE ASSESSEE DURING THE YEAR UNDER CONSIDERATION AS UNEXPLAINED CASH CREDIT . 3. THE ADDITION MADE BY THE ASSESSING OFFICER UNDER SECTION 68 ON ACCOUNT OF UNEXPLAINED CASH CREDIT WAS CHALLENGED B Y THE ASSEESESE IN THE APPEAL FILED BEFORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO COMPLIANCE ON THE PART OF THE ASSESSSEE TO THE NOTI CES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING ON 28.05.2018 AN D 18.06.2018, THE LD. CIT(APPEALS) DISMISSED THE APPEAL OF THE ASSESSEE V IDE HIS APPELLATE ORDER DATED 28.06.2018 PASSED EX-PARTE. AGGRIEVED B Y THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT O F THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING T HE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE, THE LD. CO UNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE NOTICES OF HEARING STATED TO BE ISSUED BY THE LD. CIT(APPEALS) FIXING THE HEARING ON 28.05.2018 AND 1 8.06.2018 WERE NEVER RECEIVED BY THE ASSEESSEE AND THE ASSESSEE, THEREFO RE, COULD NOT COMPLY WITH THE SAME. HE HAS CONTENDED THAT THE APPEAL FIL ED BY THE ASSESSEE THUS HAS BEEN DISMISSED BY THE LD. CIT(APPEALS) VID E HIS IMPUGNED ORDER PASSED EX-PARTE WITHOUT GIVING PROPER AND SUFFICIEN T OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THERE IS A CLEAR VIOLATIO N OF PRINCIPLE OF NATURAL JUSTICE. KEEPING IN VIEW ALL THE RELEVANT FACTS OF THE CASE, WE FIND MERIT IN THIS CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE AND SINCE THE LD. D.R. HAS ALSO NOT RAISED ANY OBJECTION IN THIS REGARD, W E SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PA RTE AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF T HE ASSESSEE AFRESH ON MERIT IN ACCORDANCE WITH LAW AFTER GIVING PROPER AN D SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I.T.A. NO. 1594/KOL/2018 ASSESSMENT YEAR: 2012-2013 M/S. SAPPHIRE MARKCOM PVT. LIMITED 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON APRIL 08, 201 9. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE -PRESIDENT (KZ) KOLKATA, THE 8 TH DAY OF APRIL, 2019 COPIES TO : (1) M/S. SAPPHIRE MARKCOM PVT. LIMITED, C/O. UNION BIKE, SATABDI TOWER, 1, SNP AREA, SAKCHI , JAMSHEDPUR-831 001 (2) INCOME TAX OFFICER, WARD-9(4), KOLKATA, AAYAKAR BHAWAN P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-18, 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.