M/s Safeline Builders Pvt Ltd., Kolkata V. I.T.O. Ward 14(4), Kolkata, Kolkata

ITA 2171/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8106 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-08-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 19-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM BILASH MEENA
• Assessee Lawyers: BISWESWAR GHOSH
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH VIRTUAL COURT A KOLKATA BEFORE SHRI P.M.JAGTAP, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.2171/KOL/2019 ASSESSMENT YEAR:2012-13 M/S SAFELINE BUILDERS PVT. LTD. DIAMOND HERITAG,16, STRAND ROAD, ROOM NO.-H 523A, 5 TH FLOOR, KOLKATA-001 [ PAN NO.AAQCS 5112 E ] / V/S . INCOME TAX OFFICER, WARD-14(4), AAYAKAR BHAWAN, 110, SANTIPALLY (POORVA), KOLKATA-107 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI BISWESWAR GHOSH, ADVOCATE /BY RESPONDENT SHRI RAM BILASH MEENA, CIT-DR /DATE OF HEARING 04-08-2020 /DATE OF PRONOUNCEMENT 19-08-2020 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-5, KOLKATAS O RDER DATED 08.08.2019, PASSED IN CASE NO. 198/CIT(A)-196/CIT(A)-5/WARD-14/15-16/K OL, INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT EMERGES AT THE OUTSET THAT THE CIT(A)S LOWE R APPELLATE ORDER AFFIRMING THE ASSESSING OFFICERS ACTION TREATING THE ASSESSEES SHARE / PREMIUM AMOUNT OF 24,59,00,000/- HAS BEEN PASSED EX PARTE . LEARNED CIT-DR VEHEMENTLY CONTENDED THAT THE ASSESSEE HAD FAILED TO DISCHARGE ITS ONUS OF PROVING GENUINENESS / CREDITWORTHINESS OF THE SHARE PREMIUM @ 999/- PER U NIT IN ASSESSMENT AND IN CIT(A)S PROCEEDINGS. HE FAILS TO REBUT THE CLINCHING FACT T HAT THERE IS NO INDICATION IN CIT(A)S ITA NO.2171/KOL/19 A.Y.2012-13 M/S SAFELINE BUILDERS PVT. LTD. VS. ITO WD-2(1), KOL PA GE 2 ORDER AND MORE SO IN PARA-2 AS TO WHETHER THE RELEV ANT HEARING NOTICE(S) HAD BEEN ACTUALLY SERVED ON THE ASSESSEE OR NOT. 3. COMING TO THE ASSESSMENT ORDER DATED 27.03.2015, WE NOTICE THAT THE ASSESSEE HAD NOT DISCHARGED ITS ONUS OF PRODUCING DIRECTORS OF THE INVESTOR ENTITIES BEFORE THE ASSESSING OFFICER IN ORDER TO PROVE GENUINENESS AND CREDITWORTHINESS OF THE IMPUGNED UNEXPLAINED CASH CREDIT SUM OF 24.59 CRORES. FACED WITH THIS SITUATION, LEARNED AUTHORIZED REPRESENTATIVE STATED AT THE BAR THAT TH E ASSESSEE IS VERY MUCH READY AND WILLING TO PRODUCE THE SAID INVESTORS DIRECTORS BE FORE THE ASSESSING OFFICER IN CASE IT IS AFFORDED ONE MORE INNINGS TO THIS EFFECT. WE ARE OF THE VIEW IN THESE PECULIAR CIRCUMSTANCES THAT LARGER INTEREST OF JUSTICE WOULD BE MET IN CASE THE LEARNED ASSESSING OFFICERS RE-DECIDES THIS UNEXPLAINED CAS H CREDITS ISSUE AFRESH SUBJECT TO THE CONDITION THAT IT SHALL BE BOUNDEN DUTY OF THE TAXP AYER TO PRODUCE THE INVESTORS / DIRECTORS STATED IN CONSEQUENTIAL PROCEEDINGS. WE T HEREFORE DIRECT THE ASSESSING OFFICER TO DECIDE UPON THE FOREGOING SOLE ISSUE OF UNEXPLAINED CASH CREDIT AS PER PRECEDING OBSERVATIONS WITHIN THREE EFFECTIVE OPPOR TUNITIES OF HEARING. 4. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 19/08/2020 SD/- SD /- ( !) (#$ ') (P.M.JAGTAP) (S.S.GODARA) VICE PRESIDENT JUDICIAL MEMBER *DKP-SR.PS ( - 19/08/2020 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S SAFELINE BUILDERS PVT. LTD., DIAMOND HERITAGE, 16, STRAND ROAD, ROOM NO.H 523A, 5 TH FLOOR, KOLKATA-001 2. /RESPONDENT-ITO WD-14(4), 110, SANTIPALLY, AAYAKAR BHAWAN (POORVA) KOLKATA-107 3. + . / CONCERNED CIT 4. . - / CIT (A) 5. / $$+ , + / DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ +,