I.T.O., Ward-1(4), Kolkata, Kolkata V. M/s Ratnakar Sales Promotion Pvt. Ltd., Kolkata

ITA 1971/KOL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2442 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 06-10-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI
• Assessee Lawyers: N O N E
• Keywords: Set aside
• Section: 68

Judgement Text

1 ITA NO. 1971/KOL/2016 RATNAKAR SALES PROMOTION P. LTD ., AY- 2005-06 , C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA ( ) . . , . ' # $% % , '( ) [BEFORE SHRI A. T. VARKEY, JM & DR. A. L. SAINI, A M] I.T.A. NO. 1971/KOL/2016 ASSESSMENT YEAR: 2005-06 INCOME-TAX OFFICER, WD-1(4), KOLKATA VS. M/S. RATNA KAR SALES PROMOTION (P) LTD. (PAN: AADCR9209A) APPELLANT RESPONDENT DATE OF HEARING 16.07.2019 DATE OF PRONOUNCEMENT 04.09.2019 FOR THE APPELLANT DR. P. K. SRIHARI, CIT, DR FOR THE RESPONDENT N O N E ORDER PER SHRI A. T. VARKEY, JM: THIS APPEAL PREFERRED BY THE REVENUE IS AGAINST THE ORDER OF THE LD. CIT(A)-1, KOLKATA DATED 13.07.2016 FOR AY 2005-06. 2. NONE APPEARED FOR THE ASSESSEE. DESPITE SEVERAL NOTICES THE ASSESSEE IS NOT APPEARING BEFORE THIS TRIBUNAL AND IT IS ALSO NOTED THAT SHRI SUBASH AGARWAL, THE LD. COUNSEL WAS GIVEN POWER OF ATTORNEY TO REPRESENT ON BEHALF OF T HE ASSESSEE. HOWEVER, IT WAS BROUGHT TO OUR NOTICE THAT THE LD. COUNSEL HAS WITHDRAWN HIS V AKALATNAMA VIDE LETTER DATED 05.01.2019. IN THE AFORESAID CIRCUMSTANCES SINCE T HE ASSESSEE IS NOT INTERESTED IN DEFENDING THE DECISION OF THE LD. CIT(A) DESPITE SEVERAL NOTI CES, WE ARE INCLINED TO PROCEED WITH THE MERITS OF THE GROUND OF APPEAL RAISED BY THE REVENU E. 3. THE LD. DR HAS POINTED OUT THAT THE ADDITIONS HA VE BEEN MADE BY THE AO BECAUSE OF NON-PARTICIPATION OF THE ASSESSEE AT THE ASSESSMENT STAGE. ACCORDING TO LD. CIT, DR, THE ASSESSEE WITHOUT PARTICIPATING IN THE ASSESSMENT PR OCEEDING BEFORE THE AO HAD PRODUCED CERTAIN DOCUMENTS BEFORE THE LD. CIT(A) WHO CALLED FOR THE REMAND REPORT BUT THE AO COULD 2 ITA NO. 1971/KOL/2016 RATNAKAR SALES PROMOTION P. LTD ., AY- 2005-06 NOT EFFECTIVELY PREPARE THE REMAND REPORT AGAIN FOR LACK OF PARTICIPATION ON THE PART OF THE ASSESSEE WHEN THE AO WAS ENQUIRING/VERIFYING THE VE RACITY OF THE DOCUMENTS FOR PREPARING THE REMAND REPORT. SO IN THE RESULT, THE LD. CIT(A) HAS DELETED THE ADDITION MERELY ON THE CONTENTION OF THE ASSESSEE THAT THE SHARE CAPITAL I N QUESTION IS PERTAINING TO AY 2000-01 AND NOT PERTAINING TO THE ASSESSMENT YEAR UNDER CONSIDE RATION I.E. AY 2005-06. WE NOTE THAT THE ADDITION OF SHARE CAPITAL HAS BEEN MADE BY THE AO P RIMARILY DUE TO NON PARTICIPATION ON THE PART OF THE ASSESSEE AND THE LD. CIT(A) HAS DELETED THE ADDITION AFTER PERUSAL OF THE DOCUMENTS FILED BEFORE HIM. IT WAS BROUGHT TO OUR NOTICE ALSO THAT AO COULD NOT PREPARE REMAND REPORT FOR LACK OF PARTICIPATION OF THE ASSE SSEE. IN THE AFORESAID CIRCUMSTANCES AND THE QUESTION RAISED BEFORE US INVOLVES US IN GIVING A FINDING ON THE QUESTION OF FACT WHICH NEEDS VERIFICATION OF DOCUMENTS WHICH WE ARE HANDIC APPED FROM DOING SINCE THE ASSESSEE HAD NOT CARED TO FILE ANY PAPER BOOK TO SUBSTANTIAT E ITS CLAIM. THEREFORE IN THE INTEREST OF JUSTICE AND FAIR PLAY, WE SET ASIDE THE ORDER OF T HE LD. CIT(A) AND REMAND THE MATTER BACK TO THE FILE OF THE AO WITH A DIRECTION TO THE ASSES SEE TO FILE ALL THE DOCUMENTS BEFORE THE AO SO THAT THE AO CAN VERIFY THE VERACITY OF THE CONTE NTIONS AND DOCUMENTS FILED BY IT. THEREAFTER, IF THE AO ON ENQUIRY FINDS THAT THE SHA RE CAPITAL IN QUESTION HAS BEEN INTRODUCED IN THE BOOKS OF THE ASSESSEE IN AY 2000-01 AS CONTE NDED BY THE ASSESSEE, THEN NO ADDITION TO BE MADE U/S. 68 OF THE ACT FOR THE YEAR UNDER CO NSIDERATION I.E. AY 2005-06. WITH THIS OBSERVATION, WE REMAND THE MATTER BACK TO THE FILE OF THE AO FOR DE NOVO ASSESSMENT AND ASSESSEE IS DIRECTED TO PARTICIPATE DILIGENTLY BEFO RE THE AO WITH THE SUPPORTING DOCUMENTS AND THE AO TO FRAME DE NOVO ASSESSMENT AFTER GIVING OPPORTUNITY TO THE ASSESSEE IN ACCORDANCE TO LAW. 4. IN THE RESULT, THE APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 4TH SEPTE MBER, 2019. SD/- SD/- (DR. A. L. SAINI) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 4TH SEPTEMBER, 2019 JD.(SR.P.S.) 3 ITA NO. 1971/KOL/2016 RATNAKAR SALES PROMOTION P. LTD ., AY- 2005-06 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT ITO, WARD-1(4), KOLKATA. 2 RESPONDENT M/S. RATNAKAR SALES PROMOTION PVT. L TD., P-41, PRINCEP STREET, 6 TH FLOOR, ROOM NO. 623, KOLKATA-700 072. 3. 4. CIT(A)-1, KOLKATA (SENT THROUGH E-MAIL) CIT-, , KOLKATA 5. DR, ITAT, KOLKATA. (SENT THROUGH E-MAIL) / TRUE COPY, BY ORDER, ASSISTANT REGISTRAR