Sheetal Cityrealtors Pvt Ltd (Formely known as Evergreen Mercantile Pvt Ltd), Kolkata V. I.T.O.,Ward-5(3), Kolkata

ITA 1606/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4533 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-10-2020
• Assessment Year: 2008-2009
• Appeal Filed On: 03-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHRUBA JYOTI RAY JCITSRDR
• Assessee Lawyers: S M SURANA
• Keywords: Unexplained cash credit; Reason to believe
• Section: 143(3); 148

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.1606/KOL/2019 ASSESSMENT YEAR: 2008-09 SHEETAL CITYREALTORS PVT. LTD., ( FORMERLY EVERGREEN MERCANTILE P. LTD. ) 107, FORESHORE ROAD, SHIBPUR, HOWRAH-711102 [ PAN NO.AABCE 8664 L ] / V/S . INCOME TAX OFFICER WARD-5(3), AAYAKAR BHAWAN, 8 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATKA-700 069 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI S.M.SURANA, ADVOCATE /BY RESPONDENT SHRI DHRUBAJYOTI RAY, JCIT-SR-DR /DATE OF HEARING 01-10-2020 /DATE OF PRONOUNCEMENT 21-10-2020 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2008-09 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATAS O RDER DATED 30.05.2016 PASSED IN CASE NO.1556/CIT(A)-2/KOL/14-15 INVOLVING PROCEEDINGS U/S143(3) R.W.S. 263 R.W.S 143(3) R.W.S. 147 OF THE INCOME TA X ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE(S) PERUSED. ITA NO.1606/KOL/2019 ASSESSMENT YEAR 2008-09 SHEETAL CITYREALTORS PVT. LTD. VS ITO WD-5( 3), KOL. PAGE 2 2. WE ADVERT TO THE BASIC RELEVANT FACTS PERTAINING TO THE SOLE ISSUE OF CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION T REATING ASSESSEES SHARE CAPITAL / PREMIUM OF 3,91,00,000/- AS UNEXPLAINED CASH CREDITS DURING TH E COURSE OF ASSESSMENT DATED 26.03.2014 AS UPHELD IN THE CIT(A) S EX PARTE ORDER; WITHOUT DEALING WITH THE CORRESPONDING DETAILED EVIDENCE ON RECORD IN COMPLIANCE TO SEC. 250(6) OF THE ACT REQUIRING FRAMING OF POINTS OF DETERMINATION FOLLOWED BY A DETAILED ADJUDICATION. 3. THE ASSESSEE IS A COMPANY ENGAGED IN SHARE DEALI NG & INVESTMENT BUSINESS. IT HAD FILED ITS ORIGINAL RETURN ON 15.07 .2008 DECLARING NIL INCOME. THE SAME STOOD PROCESSED. THE ASSESSING OFFICER THE REAFTER FORMED REASON TO BELIEVE THAT THE ASSESSEE TAXABLE INCOME LIABLE TO BE ASSESSED HAD ESCAPED ASSESSMENT. HE THUS INITIATED SEC. 148 RE-OPENING I N MOTION AND COMPLETED THE CORRESPONDING RE-ASSESSMENT ON 18.05.2010 DETERMINI NG TOTAL INCOME AT 22,500/- ONLY. 4. WE NOTICE FROM A PERUSAL OF THE CASE FILE THAT T HE CIT THEREAFTER TERMED THE SAID RE-ASSESSMENT AS AN ERRONEOUS ONE CAUSING PREJUDICE TO THE INTEREST OF REVENUE TO EXERCISE HIS SEC. 263 REVISION JURISDICT ION VIDE ORDER DATED 28.03.2013 AND DIRECTED THE ASSESSING OFFICER TO VE RIFY THE THREE LIMB(S) OF IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE I NVESTOR PARTIES QUA THE ASSESSEES SHARE APPLICATION / PREMIUM AFTER CONDUC TING INDEPENDENT ENQUIRIES. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO REBUT THE CLINCHING FACT THAT THE ASSESSING OFFICERS CONSEQUENTIAL ASSESSMENT ADDING THE IMPUGNED SUM AS UNEXPLAINED CASH CREDITS HAD ONCE AGAIN PUT THE ONU S ON ASSESSEE ITSELF THAN CARRYING OUT THE INDEPENDENT ENQUIRIES AS PER THE C ITS ORIGINAL REVISION DIRECTION HEREINABOVE. ITA NO.1606/KOL/2019 ASSESSMENT YEAR 2008-09 SHEETAL CITYREALTORS PVT. LTD. VS ITO WD-5( 3), KOL. PAGE 3 5. WE ALSO WISH TO REPEAT THAT THE CITS LOWER APPE LLATE ORDER UNDER CHALLENGE HAD ALSO NOT DEALT WITH ASSESSEES DETAIL ED EVIDENCE FORMING PART THE CASE FILE IN SUPPORT THE GENUINENESS / CREDITWORTHI NESS OF THE SHARE APPLICATION / PREMIUM. WE THEREFORE DEEM IT APPROPRIATE TO RESTOR E THE SOLE ISSUE BACK TO ASSESSING OFFICER TO FRAME AFRESH ASSESSMENT WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING IN COMPLIANCE TO THE CITS ORIGINAL REVISION DIRECTION AS PER LAW. 6. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 21/10/2020 SD/- SD/- ( ') () ') (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS * - 21/10/2020 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SHEETAL CITYREALTORS PVT. LTD. (FORMERLY EVERGREEN MERCANTILE PVT. LTD.) 107 , FORESHORE ROAD, SHIBPUR, HOWRAH-711102 2. /RESPONDENT-INCOME TAX OFFICER, WARD-5(3), AAYAKAR BHAWAN, 8 TH FLOOR, P-7, CHOWRINGH EE SQUARE, KOLKATA-69 3. - . / CONCERNED CIT 4. . - / CIT (A) 5. / ))- , - /DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ -,