M/s Reliable Conclave Pvt. Ltd., Kolkata V. I.T.O.,Ward-14(3), Kolkata

ITA 2169/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9233 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 19-09-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: IMOKABA JAMIR
• Assessee Lawyers: BISWESWAR GHOSH
• Keywords: Opportunity of being heard
• Section: 143(3); 201; 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BE NCH B, KOLKATA [BEFORE SHRI P. M. JAGTAP, HONBLE VICE PRESIDENT & SMT. MADHUMITA ROY, HONBLE JUDICIAL MEMBER] [THROUGH VIRTUAL COURT] ITA NO.2169/KOL/2019 ASSESSMENT YEAR: 2012-13 M/S RELIABLE CONCLAVE PVT. LTD... ....................APPELLANT DIAMOND HERITAGE, 16, STRAND ROAD, ROOM NO-H 523A, 5 TH FLOOR, KOLKATA 700 001. [PAN :AAFCR4654P] ITO, WARD 14(3), KOLKATA........................... ................................................... .................RESPONDENT P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. APPEARANCES BY: SHRI BISWESWAR GHOSH, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE SHRI IMOKABA JAMIR, CIT-DR, APPEARING ON BEHALF OF THE REVENUE DATE OF CONCLUDING THE HEARING : AUGUST 03, 2020 DATE OF PRONOUNCING THE ORDER : AUGUST 12, 2020 ORDER PER MADHUMITA ROY, JM THE INSTANT APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 08.08.2019 PASSED BY THE LD . CIT(A)- 5, KOLKATA ARISING OUT OF THE ORDER DATED 25.03.2015 P ASSED BY THE ITO WARD 14(3), KOLKATA U/S 143(3) OF THE INCOME TAX AC T, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR A.Y. 201 2-13. 2. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS FOUND THAT THE ASSESSEE COMPANY FOR THE A.Y. 2012-13 ISSUED I TS SHARES TO PRIMARILY DIFFERENT PRIVATE LIMITED COMPANIES AGAIN ST HIGH PREMIUM. SUMMONS U/S 131 OF THE ACT THOUGH WERE SEND TO THE DIRECTORS OF INVESTING COMPANIES, NONE APPEARED. ULTIMATELY, THE LD. AO ON THE BASIS OF RECORDS AVAILABLE BEFORE HIM FINALISED THE ASSESSMENT UPON 2 ITA NO.2169/KOL/2019 ASSESSMENT YEAR: 2012-13 M/S RELIABLE CONCLAVE PVT. LTD MAKING ADDITION OF RS. 11,50,78,830/- WHICH WAS, IN TURN, CONFIRMED BY THE LD. CIT(A) THOUGH BY AN EX-PARTE ORDER. 3. AT THE TIME OF HEARING OF THE INSTANT APPEAL, TH E LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED BEFORE US THAT THE NOTICE OF HEARING THOUGH ISSUED, THE DIRECTORS OF T HOSE COMPANIES COULD NOT APPEAR BEFORE THE REVENUE. HOWEVER, THE L EARNED COUNSEL UNDERTAKES TO PRODUCE THE DIRECTORS OF THOSE COMPAN IES BEFORE THE LD. AO AND, THEREFORE, PRAYS FOR A DIRECTION FOR SE TTING ASIDE THE ISSUE TO THE FILE OF THE LD. AO TO RE-ADJUDICATE THE ISSU E UPON CONSIDERING THE PRESENCE OF THE DIRECTORS AND THE FURTHER RECOR DS TO BE MADE AVAILABLE BEFORE HIM, IF REQUIRED. 4. ON THE OTHER HAND, THE LD. DR APPEARING FOR THE REVENUE SUBMITTED THAT THE ASSESSEE HAS NOT BEEN ABLE TO GI VE ANY SATISFACTORY COMPLIANCE ON THE PART OF THE CONCERNED SHARE SUBSC RIBERS AND ULTIMATELY HAVING NO OTHER ALTERNATIVE THE EX-PARTE ORDER WAS PASSED CONFIRMING THE ADDITION MADE BY THE LD. AO. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS MADE BY THE RESPECTIVE PARTIES AND WE HAVE ALSO PERUSED THE RELEVANT MATER IALS AVAILABLE ON RECORD INCLUDING THE ORDERS PASSED BY THE CO-ORDINA TE BENCH IN ITA NO. 570/KOL/2018 IN THE MATTER OF VRIDDHI POWER PVT . LTD. VS ITO ON THE IDENTICAL ISSUE AS SUBMITTED BY THE LD. AR. WE HAVE FURTHER CONSIDERED THE JUDGMENT PASSED BY THE COORDINATE BENCH IN THE MATTER OF VRIDDHI POWER PVT . LTD. VS ITO IN ITA NO. 570/KOL/2018. WE FIND IN THE IDENTICAL SITU ATION THE COORDINATE BENCH HAS BEEN PLEASED TO PASS ORDER DIR ECTING THE LD. A.O 3 ITA NO.2169/KOL/2019 ASSESSMENT YEAR: 2012-13 M/S RELIABLE CONCLAVE PVT. LTD TO ADJUDICATE THE MATTER AFRESH BY PROVIDING A FURT HER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. WE, THEREFORE, TAKING INTO CONSIDERATION THE ENT IRE ASPECT OF THE MATTER, THE UNDERTAKING GIVEN BY THE LD. AR FOR PRO DUCING THE DIRECTOR OF THE INVESTING COMPANIES BEFORE THE REVE NUE AND PARTICULARLY UPON CONSIDERING THE JUDGMENT RELIED U PON, RESPECTFULLY RELYING UPON THE SAME, FIND IT FIT AND PROPER TO RE STORE THE ISSUE TO THE FILE OF THE LD. ASSESSING OFFICER FOR DECIDING THE SAME AFRESH UPON GIVING AN OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIA TE ITS CASE AND ALSO TAKING INTO CONSIDERATION THE PRESENCE OF THE LD. D IRECTORS OF THE COMPANIES AND THE EVIDENCE ON RECORD OR ANY OTHER E VIDENCE WHICH THE ASSESSEE MAY CHOOSE TO FILE AT THE TIME OF HEAR ING OF THE MATTER AND TO PASS ORDER IN ACCORDANCE WITH LAW. WE, FURTH ER MAKE IT CLEAR THAT THE ASSESSEE WILL ALSO COOPERATE WITH THE REVE NUE TO ADJUDICATE THE MATTER IN ITS PROPER PERSPECTIVE. HENCE ASSESSE ES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST, 2020. SD/- SD/- (P.M. JAGTAP) (MADHUMITA ROY) VICE PRESIDENT JU DICIAL MEMBER DATED: 12/08/2020 BISWAJIT, SR. PS 4 ITA NO.2169/KOL/2019 ASSESSMENT YEAR: 2012-13 M/S RELIABLE CONCLAVE PVT. LTD COPY OF ORDER FORWARDED TO: 1. M/S RELIABLE CONCLAVE PVT. LTD 2. ITO, WARD 14(3), KOLKATA 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR ITAT, KOLKATA