ITO, WARD-10(1), Kolkata, Kolkata V. M/s Alltime Vincom Private Limited, Kolkata

ITA 1706/KOL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9379 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 26-08-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Keywords: Unexplained cash credit; Set aside
• Section: 143(3); 195; 131; 68; 2

Judgement Text

PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A, KOLKATA BEFORE SH. P.M.JAGTAP, VICE PRESIDENT & SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1706/KOL/2016 (ASSESSMENT YEAR-2012-13) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 30.06.2016 PASSED BY CIT(A)-4, KOLKATA FOR AY 2012-13 U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). 2. THE LD.AR PLACED ON RECORD THE INFORMATION REGARDING SHARE ALLOTTEES IN FOUR VOLUMES OF PAPER BOOK. 3. HEARD BOTH PARTIES AND PERUSED MATERIAL AVAILABLE ON RECORD. THE AO FOUND THAT THE ASSESSEE RECEIVED FRESH AMOUNT OF RS. 15,12,50,000/- UNDER SHARE APPLICATION MONEY AND SHARE PREMIUM THEREON. THE AO ISSUED SUMMONS U/S 131 OF THE ACT TO THE ASSESSEE TO JUSTIFY POINTS MADE THEREIN THE ASSESSMENT ORDER IN PAGE NO.1. ACCORDING TO AO, THERE WAS NO COMPLIANCE FROM THE ASSESSEE IN RESPONSE TO THE SUMMONS U/S 131 OF THE ACT AND HELD NO VERIFICATION ON SHARE CAPITAL PREMIUM COULD BE DONE FOR NON-COMPLIANCE ON BEHALF OF THE ASSESSEE AND THE SAID AMOUNT WAS TREATED AS UNEXPLAINED CASH ITO, WARD-10(1), KOLKATA-700069. VS M/S. ALLTIME VINCOM PVT.LTD., AD-76, SECTOR-1, SALT LAKE CITY, KOLKATA-700064. PAN- AAJCA7051P (APPELLANT) (RESPONDENT) APPELLANT BY SH. A.K.NAYAK, CIT DR RESPONDENT BY SH. MIRAJ D.SHAH, FCA DATE OF HEARING 12.06.2019 DATE OF PRONOUNCEMENT 03.07.2019 ITA NO.1706/KOL/2016 (ASSESSMENT YEAR-2012-13) PAGE | 2 CREDIT U/S 68 OF THE ACT AND ADDED TO THE INCOME OF THE ASSESSEE. WE FIND THAT BEFORE THE CIT(A) PLACED RELIANCE ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS LTD. 216 CTR 195 [SC]. IN THE LIGHT OF THE OBSERVATIONS MADE BY THE HONBLE SUPREME COURT, THE CIT(A) DELETED THE ADDITION MADE BY THE AO ON ACCOUNT OF UNEXPLAINED CASH CREDIT. IT IS NOTED FROM THE RECORD THAT THERE WAS NO COMPLIANCE ON BEHALF OF THE ASSESSEE IN RESPONSE TO THE SUMMONS ISSUED U/S 131 IN THE ASSESSMENT PROCEEDINGS AND IT IS CLEAR THAT NO BURDEN WAS DISCHARGED BY THE ASSESSEE IN PROVING THE IDENTITY, CREDITWORTHINESS OF SHARE ALLOTTEES AND GENUINENESS OF THE TRANSACTIONS U/S 68 OF THE ACT. IT IS NOTED THAT NOW THE ASSESSEE IS READY TO PROVIDE ALL THE DETAILS IN RESPECT OF THE ASSESSMENT OF ALLOTTEES BEFORE THE AO IF THIS TRIBUNAL PLEASES TO REMAND THE MATTER TO THE AO FOR HIS FRESH VERIFICATION OF THE SAID DETAILS WHICH ARE PLACED ON RECORD. AS DISCUSSED ABOVE, WE FIND NO INFORMATION REGARDING THE SHARE ALLOTTEES BEFORE THE AO. THEREFORE, TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE LD. AR & LD. DR AND FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO RESTORE THE MATTER TO THE FILE OF AO FOR HIS FRESH VERIFICATION. THE ASSESSEE IS LIBERTY TO FILE EVIDENCES, IF ANY, TO SUBSTANTIATE ITS CLAIM. THEREFORE, THE ORDER OF CIT(A) IS SET ASIDE AND GROUNDS RAISED BY THE REVENUE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03.07.2019. SD/- SD/- (P.M.JAGTAP) (S.S.VISWANETHRA RAVI) VICE PRESIDENT JUDICIAL MEMBER DATE:- 03.07.2019 *AMIT KUMAR* ITA NO.1706/KOL/2016 (ASSESSMENT YEAR-2012-13) PAGE | 3 COPY FORWARDED TO: 1. APPELLANT- ITO, WARD-10(1), KOLKATA-700069. 2. RESPONDENT- M/S. ALLTIME VINCOM PVT.LTD., AD-76, SECTOR-1, SALT LAKE CITY, KOLKATA-700064. 3. CIT-KOLKATA 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES BY ORDER AR/H.O.O ITAT, KOLKATA