Umang Commo Trade Pvt. Ltd., Kolkata V. I.T.O., Ward-2(4) Presently I.T.O., Ward-1(3), Kolkata, Kolkata

ITA 16/KOL/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9574 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 05-11-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 08-01-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause; Condonation of delay
• Section: 68; 250

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘ए’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी ͬगरȣश अĒवाल, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T.A. No.16/Kol/2023 (Assessment Year: 2012-13) Umang Commo Trade Pvt. Ltd......................................................Appellant 2 nd Floor, Room No.2B, 56, Metacalfe Street, Bowbazar, Kolkata-700013. [PAN: AAACU3317M] vs. ITO, Ward-2(4) Presently ITO, Ward-1(3), Kolkata......................... Respondent Appearances by: Shri Rites Goel, Advocate, appeared on behalf of the appellant. Shri B. K. Singh, JCIT-Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : November 06, 2023 Date of pronouncing the order : December 12, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 18.01.2017 of the Commissioner of Income Tax(Appeals)-1, Kolkata (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The appeal is time barred by 2122 days. A separate application for condonation of delay has been filed, wherein, it has been pleaded that the impugned order of the CIT(A) was never served upon the assessee. Though, the order was uploaded on the website portal of the Income Tax Department, however, the assessee was not aware of the same. It has been submitted that the assessee came to know about the passing I.T.A. No.16/Kol/2023 (Assessment Year: 2012-13) Umang Commo Trade Pvt. Ltd 2 of the order when he received notification regarding the same on 13.12.2022 and therefore, the appeal was filed within the limitation period. Without prejudice to the above submissions, it has been pleaded that the business of the assessee had almost come to standstill during the years 2017 to 2021 and he was in financial ruin. He had an extremely difficult time even meeting his family expenses. Thereafter, the Covid Pandemic period started and under the circumstances, the assessee has reasonable cause for not filing appeal within the limitation period. However, the main contention of the ld. AR has been that the impugned order of the CIT(A) was never served upon the assessee. The assessee has come to know about the passing of the impugned order of the CIT(A) only on 13.12.2022. The said contention of the assessee has not been rebutted by the Department by providing on file any evidence that the impugned order of the CIT(A) was served upon the assessee before 13.12.2022. In view of the aforesaid submissions and considering the interests of justice, the delay occurred in filing the present appeal is hereby condoned. 3. Now, coming to the merit of the appeal, the assessee in this appeal has agitated the confirmation of addition of a sum of Rs.3,00,00,000/- made by the Assessing Officer u/s 68 of the Act treating the share capital and share premium received by the assessee as unexplained income of the assessee. 4. At the outset, the ld. counsel for the assessee has invited our attention to the impugned assessment order to submit that though the Assessing Officer in para 2 of the assessment order has observed that the assessee had submitted mere preliminary document in the office through DAK (to the receipt clerk), however, he has not discussed any I.T.A. No.16/Kol/2023 (Assessment Year: 2012-13) Umang Commo Trade Pvt. Ltd 3 of the evidences/documents furnished by the assessee. He has further submitted that the Assessing Officer observed that the assessee had not made any compliance to the notices issued by the Assessing Officer which was factually wrong. In fact, the assessee duly furnished the documents to prove the identity and financial worth of the share subscribers and genuineness of the transaction. The ld. counsel, in this respect, has relied upon the following documents: “1. Income Tax Acknowledgement for AY 2012-13 2. Director's Report for the year 3 1st March, 2012 3. Auditor's Report, Balance Sheet with Schedules for the year 31st March, 2012 4. Auditor's Report under NBFC for the year 31 st March, 2012 5. ROC Form 2 or Return of Allotment 6. ROC Form 5 for Increase of Authorized Share Capital 7. Ledger of Share capital for the year 01 st April 2011 to 31 st March 2012 8. Ledger of Share Premium for the year 01st April 2011 to 31st March 2012 9. Share Sale Bill with confirmation of JP Engineering Corporation Pvt Ltd 10. Share Sale Bill with confirmation of Paridhi Finvest Pvt Ltd 11. Master Data of JP Engineering Corporation Pvt. Ltd 12. Auditor's Report of JP Engineering Corporation Pvt. Ltd with Balance Sheet with Schedules for the year 31 st March, 2012 13. Auditor's Report of Paridhi Finvest Pvt Ltd with Balance Sheet with Schedules for the year 31 st March, 2012 14. ITR & Auditor’s report of Umang Commo Trade Pvt. Ltd.” 5. He has further submitted that however none of the documents have been looked into by the Assessing Officer. The ld. counsel inviting our attention to the impugned order of the CIT(A) has submitted that I.T.A. No.16/Kol/2023 (Assessment Year: 2012-13) Umang Commo Trade Pvt. Ltd 4 even the ld. CIT(A) has also dismissed the appeal of the assessee, without going through the evidence on the file, in a mechanical manner. The ld. counsel, therefore, has submitted that in the interests of justice, the assessee may be given an opportunity to present its case before the Assessing Officer to prove the identity and financial worth of the share subscribers and genuineness of the transaction. 6. The ld. DR could not rebut the above submissions of the assessee that both the lower authorities have not considered the documents furnished by the assessee. 7. Considering the above aspects, in our view, the interests of justice will be well-served, if, the assessee is given an opportunity to present its case before the Assessing Officer. In view of this, the impugned order of the CIT(A) is set aside and the matter is restored to the file of the Assessing Officer for de novo assessment on this issue. Needless to say that the ld. CIT(A) will give proper and adequate opportunity to the assessee to present its case and furnish the evidences, thereafter, to decide the issue by way of a speaking order. 8. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Kolkata, the 12 th December, 2023. Sd/- Sd/- [ͬगरȣश अĒवाल /Girish Agrawal] [संजय गग[ /Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 12.12.2023. RS I.T.A. No.16/Kol/2023 (Assessment Year: 2012-13) Umang Commo Trade Pvt. Ltd 5 Copy of the order forwarded to: 1. Umang Commo Trade Pvt. Ltd 2. ITO, Ward-2(4) Presently ITO, Ward-1(3), Kolkata 3.CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches