M/s Ruchi Vintrade Pvt. Ltd., New Delhi V. ITO, Ward-9(3),Kolkata, Kolkata

ITA 168/KOL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6346 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 02-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMITAVA BHATTACHARYA
• Assessee Lawyers: ASHUTOSH AGARWAL
• Keywords: Additional evidence
• Section: 142(1); 131; 144

Judgement Text

, B , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.168/KOL/2017 ASSESSMENT YEAR:2009-10 M/S RUCHI VINTRADE PVT. LTD., 14-C, M.D. ROAD, 4 TH FLOOR, KOLKATA-700 007 [ PAN NO.AAECR 0973 J ] / V/S . INCOME TAX OFFICER, WARD-9(3),8 TH FLOOR, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-69 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SANDEEP SAPRA, ADVOCATE & SHRI ASHUTOSH AGARWAL, CA /BY RESPONDENT SHRI AMITAVA BHATTACHARYA, ADDL-CIT-DR /DATE OF HEARING 04-06-2018 /DATE OF PRONOUNCEMENT 15-06-2018 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 ARISES AGAINST COMMISSIONER OF INCOME TAX (APPEALS)-3, KOLKATAS O RDER DATED 02.12.2016, PASSED IN CASE NO.403/CIT(A)-3/W-9(3)/KOL/15-16, CO NFIRMING ASSESSING OFFICERS ACTION ADDING ITS SHARE CAPITAL / PREMIUM AMOUNT OF 4,22,00,000/-, INVOLVING PROCEEDINGS U/S. 144/263/147/143(3) OF TH E INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. ITA NO.168/KOL/2017 A.Y. 2009-10 M/S RUCHI VINTRADE PVT. LTD. VS. ITO WD-9(3) KO L. PAGE 2 2. IT EMERGES AT THE OUTSET THAT THE ASSESSING OFFI CER HAD FRAMED THE ASSESSMENT EX PARTE ON 18.03.2015 ADDING THE IMPUGNED SHARE PREMIUM QU A 1,68,800 UNITS OF EQUITY SHARES HAVING FACE VALUE O F 10/- EACH SOLD AT A PREMIUM OF 240/- PER SHARE. HE RECORDED IN ASSESSMENT ORDER TH AT THE ASSESSEE DID NOT APPEAR ALONGWITH THE RELEVANT DETAILS SO AS TO SATI SFY THE THREE NECESSARY CONDITIONS OF IDENTITY, GENUINENESS AND CREDITWORTH INESS THEREOF DURING THE COURSE OF SCRUTINY. 3. THE ASSESSEE PREFERRED ITS APPEAL AGAINST THE SA ID ADDITION. IT CHOSE TO FILE VOLUMINOUS ADDITIONAL EVIDENCE UNDER RULE 46A OF TH E INCOME TAX RULE, 1962 AS WELL. THE CIT(A) OBSERVES IN PARA-4 THAT THE SAI D ADDITIONAL EVIDENCE DOES NOT DESERVE TO BE ADMITTED SINCE THE ASSESSING OFFI CER HAD GRANTED IT SUFFICIENT OPPORTUNITIES AFTER ISSUING SECTION 142(1) NOTICE. HE THEREAFTER AFFIRMS THE IMPUGNED ADDITION AFTER A DETAILED DISCUSSION DOUBT ING GENUINENESS AND CREDITWORTHINESS THEREOF. 4. WE HAVE HEARD RIVAL CONTENTIONS. CASE FILE PERUS ED. WE FIRST OF ALL FIND THAT THE ASSESSING OFFICER HAD TAKEN RECOURSE TO B EST JUDGMENT ASSESSMENT U/S 144 OF THE ACT IN MAKING THE IMPUGNED SHARE CAPITAL / PREMIUM ADDITION. HE OBSERVES IN ASSESSING OFFICER THAT NOBODY HAD TURNE D UP AT THE ASSESSEES BEHEST OR AT THE INSTANCE OF INVESTOR ENTITIES. LEARNED CO UNSEL TAKSE US TO THE CASE RECORD INDICATING THE ASSESSING OFFICER TO HAVE ISS UED U/S 131 PROCESS TO 4 SHARE SUBSCRIBER COMPANIES AND ITS DIRECTOR, SHRI AMIT AG ARWAL ON 04.02.2015. THREE OUT OF THE SAID FOUR SUBSCRIBER ENTITIES HAD SUBMIT TED THEIR RESPECTIVE REPLIES ALONGWITH NECESSARY DOCUMENTARY EVIDENCE IN THE NAT URE OF INCOME TAX RETURNS WITH RELEVANT BANK STATEMENTS ETC. LEARNED DEPARTME NTAL REPRESENTATIVE FAILS TO DISPUTE THE SAME DURING THE COURSE OF HEARING BEFOR E US. WE FURTHER NOTICE THAT THE CIT(A) HAS NOT CONSIDERED THESE FACTS AT ALL IN HIS ORDER UNDER CHALLENGE WHILE REJECTING THE ASSESSEES ADDITIONAL EVIDENCE (SUPRA). THE ASSESSEE DESERVES ITA NO.168/KOL/2017 A.Y. 2009-10 M/S RUCHI VINTRADE PVT. LTD. VS. ITO WD-9(3) KO L. PAGE 3 ONE MORE INNINGS BEFORE THE ASSESSING OFFICER THERE FORE FOR PROVING ITS CASE IN CONSEQUENTIAL PROCEEDINGS. IT IS MADE CLEAR THAT IT WILL BE OPEN FOR THE ASSESSING OFFICER TO CONDUCT INDEPENDENT VERIFICATION AS WELL QUA INVESTOR ENTITIES IN QUESTION. THE ASSESSEE MAY FILE ALL THE RELEVANT EV IDENCE IN THE CONSEQUENTIAL ROUND OF PROCEEDINGS. 5. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 15/06/2018 SD/- SD/- ( &) (( &) (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS ) - 15/06/2018 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S RUCHI VINTRADE PVT. LTD.,14-C,M.D. R D, 4 TH FL, KOL-007 2. /RESPONDENT-INCOME TAX OFFICER, WARD-9(3),8 TH FLOOR, AAYAKAR BHAWAN, P-7, CHOWRINGHE E SQUARE, KOLKATA-69 3. , - / CONCERNED CIT 4. - - / CIT (A) (E-MAIL) 5. . ((, , , /DR, ITAT, KOLKATA (E-MAIL) 6. 2 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO ,,