ITO, Ward - 2(3), Kolkata, Kolkata V. M/s. Starwise Agency Pvt. Ltd., Kolkata

ITA 2124/KOL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9424 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 03-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Keywords: Source of fund; Assessment record
• Section: 133(6)

Judgement Text

PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B, KOLKATA BEFORE SH. J.SUDHAKAR REDDY, ACCOUNTANT MEMBER & SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.2124/KOL/2017 (ASSESSMENT YEAR-2012-13) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 20.07.2017 PASSED BY CIT(A)-2, KOLKATA FOR AY 2012-13. 2. WHEN THE MATTER IS CALLED, THERE WAS NO REPRESENTATION ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION SEEKING ADJOURNMENT WAS FILED. THE RESPONDENT-ASSESSEE CALLED ABSENT AND WE PROCEED TO HEAR THE APPELLANT-REVENUE AND DISPOSE OF THE APPEAL BASING ON THE MATERIAL AVAILABLE ON RECORD. 3. HEARD LD. DR AND PERUSED MATERIAL AVAILABLE ON RECORD. THE AO OBSERVED THAT THE ASSESSEE ISSUED PAID UP EQUITY SHARES FACE VALUE OF RS.1 (ONE) WITH PREMIUM OF RS.999/- AND RAISED CAPITAL OF RS.9,82,00,000/- FROM VARIOUS COMPANIES. ACCORDING TO AO AND IT IS ALSO NOTED FROM THE ASSESSMENT RECORD THAT THERE WAS NO COMPLIANCE BY THE SHARE SUBSCRIBING COMPANIES IN RESPONSE TO THE INFORMATION CALLED U/S 133(6) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). BUT, HOWEVER, IT IS NOTED THAT THE ASSESSEE CONTENDED BEFORE THE CIT(A) THAT THE SAID TRANSACTION WILL NOT COME UNDER THE PURVIEW OF THE CASH ITO, WARD-2(3), KOLKATA-700069. VS M/S. STARWISE AGENCY PVT.LTD., 27, WESTON STREET, KOLKATA-700012. PAN- AARCS2585A (APPELLANT) (RESPONDENT) APPELLANT BY SH. A.K.SINGH, CIT DR RESPONDENT BY NONE DATE OF HEARING 11.04.2019 DATE OF PRONOUNCEMENT 05.07.2019 ITA NO.2124/KOL/2017 (ASSESSMENT YEAR-2012-13) PAGE | 2 CREDIT AS THERE IS NO CASH RECEIPT OR RECEIPT OF ANY MONEY OR CREDIT OF ANY MONEY IN THE BOOKS OF ACCOUNT. THE ASSESSEE DID NOT RECEIVE ANY SHARE APPLICATION MONEY. THE ALLOTMENT OF SHARES IS AGAINST THE DISCHARGE OF DEBTS BY JOURNAL ENTRIES IN THE BOOKS. CONSIDERING THE SAME IN TERMS OF THE PROVISIONS OF SECTION 68, THE CIT(A) DELETED THE ADDITION AND HELD THE ORDER OF AO IS NOT JUSTIFIED. FURTHER, IT IS OBSERVED THAT THE ASSESSEE FILED A PAPER BOOK RUNNING INTO PAGES 342 CONTAINING THE DETAILS OF SHARE SUBSCRIBING COMPANIES IN RESPONSE TO SECTION 133(6), I.E. DECLARATION OF SOURCE OF FUND, ITR ACKNOWLEDGEMENT AND BALANCE SHEET, DETAILED SCHEDULES OF FALL SHARE SUBSCRIBING COMPANIES BEFORE US. AS DISCUSSED ABOVE, THE SAID DETAILS WERE NOT BEFORE THE AO IN THE ASSESSMENT PROCEEDINGS. THEREFORE, TAKING INTO CONSIDERATION THE ISSUE ON HAND AND FACTS AND CIRCUMSTANCES OF THE CASE, WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF AO FOR HIS FRESH CONSIDERATION. THUS, 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 05.07.2019. SD/- SD/- (J.SUDHAKAR REDDY) (S.S.VISWANETHRA RAVI) ACCOUNANT MEMBER JUDICIAL MEMBER DATE:- 05.07.2019 *AMIT KUMAR* ITA NO.2124/KOL/2017 (ASSESSMENT YEAR-2012-13) PAGE | 3 COPY FORWARDED TO: 1. APPELLANT- ITO, WARD-2(3), KOLKATA-700069. 2. RESPONDENT- M/S. STARWISE AGENCY PVT.LTD., 27, WESTON STREET, KOLKATA-700012. 3. CIT-KOLKATA 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES BY ORDER AR/H.O.O ITAT, KOLKATA