Appeal details
Counselvise Citation
[2012] 119 COUNSELVISE.COM (IT) 8051 (ITAT-KOLKATA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 10 month(s) 10 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
08-11-2012
Appeal Filed By
Department
Bench Allotted
B
Next Hearing Date
08-11-2012
Assessment Year
2006-2007
Appeal Filed On
29-12-2010
Judgement Text
, , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA [ () )) ) , , , , . .. .'# '#'# '#. .. . , , , , $% ] ]] ] [BEFORE SMT.DIVA SINGH, JM & SRI C. D. RAO, AM ] ' / I.T.A NO. 2288/KOL/2010 () *+/ ASSESSMENT YEAR : 2006-07 I.T.O., WARD-1(1), -VS.- M/S.S.R.WO RTH AYAT NIRYAT PVT. LTD. KOLKATA KOLKATA (PAN:AAICS 5399 H) [ -. /APPELLANT ] [ /0-./ RESPONDENT ] -. / FOR THE APPELLANT : SHRI A.K.MAHAPATRA, CIT (DR) /0-. / FOR THE RESPONDENT : NONE 1(2 3 #% /DATE OF HEARING : 08.11.2012. 4* 3 #% /DATE OF PRONOUNCEMENT : 08.11.2012. $5 /ORDER . .. .'# '#'# '#. .. . , , , , $% PER C. D. RAO, A. M. THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORD ER OF LD. CIT-(A)-I,KOLKATA DATED 15.09.2010 PERTAINING TO ASSESSMENT YEAR 2006 -07. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLO WING GROUNDS :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) ERRED IN DELETING THE ADDITIONS OF RS1,05,00,000!- MADE U/S.68 OF THE IT. ACT, 1961 IN RESPECT OF SHARE CAPITAL BY ACCEPTING FRESH & ADDITIONAL EVIDENCES IN CONTRA VENTION OF PROVISIONS OF RULE 46A OF IT. RULES 1962. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) ERRED IN DELETING THE ADDITIONS OF RS.86,20,000!- MADE U/S.68 OF THE L.T. ACT, 1961 ON ACCOUNT OF PENDING SHARE ALLOTMENT BY ACCEPTING FRESH & ADDITIONAL EVI DENCES IN CONTRAVENTION OF PROVISIONS OF RULE 46A OF IT. RULES 1962.. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.25,00,000/- ON ACCOUNT OF DISALLOWAN CE OF THE CLAIM OF CHEQUE-IN-HAND AS UNEXPLAINED INVESTMENTS BY ACCEPTING FRESH & ADDITI ONAL EVIDENCES IN CONTRAVENTION OF PROVISIONS OF SECTION 46A OF IT. RULES 1962. ITA NO.2288/KOL/2010 2 4, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE ORDER OF THE LD. CIT(A) IS PERVERSE AND DESERVES TO BE SET ASIDE AND THE ORDER OF THE A. 0. DESERVE TO BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO AMEND, MODIFY AND ALTER ANY GROUNDS OF APPEAL DURING THE COURSE OF HEARING OF THIS CASE. 3. THIS APPEAL HAD BEEN FIXED FOR HEARING INITIALL Y ON 25.03.2011. NONE APPEARED ON BEHALF OF THE ASSESSEE AND THE CASE WAS ADJOURNE D TO 10.06.2011 BY ISSUING NOTICE BY RPAD. ON 10.06.2011 THE CASE WAS ADJOURNED AT THE R EQUEST OF ASSESSEE TO 01.09.2011. ON 01.09.2011 THE BENCH DID NOT FUNCTION AND THE CA SE WAS ADJOURNED TO 07.02.1012. AGAIN ON 07.02.2012 NO ONE APPEARED ON BEHALF OF AS SESSEE AND THE CASE WAS ADJOURNED TO 05.06.2012 AND THE NOTICE WAS ISSUED BY RPAD. ON 05.06.2012 NO ONE APPEARED ON BEHALF OF ASSESSEE AND THE CASE WAS ADJOURNED TO 08 .11.2012. BY ISSUING NOTICE BY RPAD. KEEPING IN VIEW OF THE ABOVE FACTS, WE ARE OF THE VIEW THAT THE ASSESSEE IS NOT INTERESTED TO RESPOND TO THE REVENUES APPEAL. THER EFORE, WE CONSIDERED IT FIT TO DISPOSE OF THIS REVENUES APPEAL AFTER HEARING THE LD. DR. 4. AT THE TIME OF HEARING, THE LD. DR APPEARING ON BEHALF OF REVENUE HAS POINTED OUT THAT THE LD. CIT(A)HAS DELETED THREE ADDITIONS MADE BY AO ON ACCOUNT OF BOGUS SHARE APPLICANTS AMOUNTING TO RS.1,05,00,000/-, ON ACCOUNT OF SHARE APPLICATION MONEY AMOUNTING TO RS.86,20,000/- AND ON ACCOUNT OF UNEXP LAINED INVESTMENT AMOUNTING TO RS.25,00,000/- BY ACCEPTING THE ADDITIONAL EVIDENCE S IN CONTRAVENTION OF THE PROVISION OF RULE 46A OF THE IT RULES, 1962. HE FURTHER SUBMI TTED THAT NO REMAND REPORT HAS BEEN CALLED FOR BY LD. CIT(A) BEFORE ACCEPTING THE ADDITIONAL EVIDENCES WHILE DELETING THE ADDITIONS MADE BY AO. THEREFORE, HE REQUESTED T O SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF AO FOR FRESH ADJUDICATION. 5. AFTER HEARING THE LD. DR, IT IS OBSERVED THAT TH E LD. CIT(A) HAS VIOLATED THE PROVISION OF RULE 46A OF IT RULES, 1962. SINCE THE ASSESSMENT HAS BEEN MADE BY AO U/S 144 OF THE IT ACT I.E. AT THE TIME OF ASSESSMEN T THE ASSESSEE HAS NOT PRODUCED ANY DOCUMENTS, HOWEVER, AT THE TIME OF APPEAL THE LD. C IT(A) WHILE DELETING THE ADDITION OF ITA NO.2288/KOL/2010 3 RS.1,05,00,000/- IN RESPECT OF BOGUS SHARE APPLICAN TS HAS OBSERVED THAT I HAVE GONE THROUGH THE DOCUMENTARY EVIDENCE AND T HE SUPPORTING EVIDENCE THEREOF FILED BY THE AUTHORISED REPRESENTATIVE DURING THE COURSE OF APPEAL AND AM CONSIDERED THAT BOTH THE CONDITIONS OF CREDIT WORTHINESS AND GENUINENESS OF THE TRANSACTION HAVE BEEN ESTABLISHED BY THE AUTHORISED REPRESENTATIVE MORE S O AS THE DEPARTMENT HAS ITSELF ACCEPTED THE EXISTENCE OF THE SHARE APPLICANTS AD THEIR CORR ESPONDING ENTRIES IN ALL THE CASES CITED ABOVE IN THE IRRESPECTIVE CASES. 5.1. AND SIMILARLY WHILE DELETING THE ADDITION OF R S.86,20,000/- IN RESPECT OF SHARE APPLICATION MONEY THE LD. CIT(A) HAS OBSERVED AS UN DER :- FROM THE DETAILS FILED BY THE AUTHORISED REPRESENT ATIVE IT IS EVIDENT THAT ALL THE TRANSACTIONS WERE THROUGH ACCOUNT PAYEE CHEQUES AND THE ASSESSEE IS REGULARLY INVOLVED WITH THE TRANSACTIONS WHICH ARE EVIDENT FROM THE AU DITED ACCOUNTS AND TAX AUDIT REPORT, AS WELL AS THE CLAUSE STATED IN THE MEMORANDUM AND ART ICLES OF ASSOCIATION FILED DURING THE COURSE OF APPEAL. IN THE CIRCUMSTANCES THE TRANSACT IONS APPEAR GENUINE. THE DISALLOWANCES OF RS.86,20,000/- IS UNJUSTIFIED. THE GROUND IS THEREFORE ALLOWED. . 5.2. WHILE DELETING THE ADDITION OF RS.25,00,000/- IN RESPECT OF UNEXPLAINED INVESTMENT THE LD.CIT(A)S OBSERVATIONS ARE AS UNDE R :- THE AUTHORISED REPRESENTATIVE OF THE APPELLANT DUR ING THE COURSE OF HEARING SUBMITTED THE DETAILS OF CHEQUES IN HAND AND THE REASON WHY THOSE CHEQUES NOT DEPOSITED IN THE BANK. THE A/R FURTHER MENTIONED THAT ALL THE CHEQUES RECE IVED BY THE COMPANY WERE RETURNED AS THE SAME BECAME OUT OF DATE AND NECESSARY REVERS AL ENTRY WAS IMMEDIATELY PASSED BY THE COMPANY. I HAVE GONE THROUGH THE PAPERS FILED B Y THE AUTHORISED REPRESENTATIVE AND FOUND THAT THE DETAILS OF CHEQUES RECEIVED AND RETU RNED TO THE APPLICANT ARE GENUINE. 5.3. FROM THE ABOVE OBSERVATIONS, IT IS EVIDENT THA T THE LD. CIT(A) HAS ACCEPTED THE ADDITIONAL EVIDENCES IN VIOLATION OF RULE 46A OF TH E IT RULES, 1962 AND EVEN WITHOUT GETTING THE REMAND REPORT HE HAS DELETED THESE ADDI TIONS MADE BY AO WHICH IS NOT IN ACCORDANCE WITH LAW. THEREFORE, WE SET ASIDE THE OR DER OF LD. CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF LD. CIT(A) TO DECIDE THE ISSUES AS PER LAW AFTER GETTING THE REMAND REPORT FROM AO AND THE RESPONSE OF ASSESSEE AGAINST THE REMAND REPORT OF THE AO AND AFTER GIVING A REASONABLE OPPORTUNITY OF BEING HEARD TO ASSESSEE. ITA NO.2288/KOL/2010 4 6. IN THE RESULT THE APPEAL OF REVENUE IS ALLOWED F OR STATISTICAL PURPOSES. $5 %1$ 6 1( 7 8 #% ORDER PRONOUNCED IN THE OPEN COURT ON 08.11.2012. SD/- SD/- [ , ] [ .'#., , , , $% ] [ DIVA SINGH ] [ C. D. RAO ] JUDICIAL MEMBER ACCOUNTANT MEMBER (#%) DATED : 08.11.2012. [RG (9: ; /.PS] $5 3 /< =$<*/ COPY OF THE ORDER FORWARDED TO: 1. M/S. S.R.WORTH AYAT NIRYAT PVT. LTD., NARAYANI COMP LEX, 268, G.T.ROAD, HOWRAH-711204. 2 I.T.O., WARD-1(1), KOLKATA. 3. THE CIT, 4. THE CIT(A)- I, KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA [0< // TRUE COPY] $5(1/ BY ORDER, : /ASSTT REGISTRAR ITA NO.2288/KOL/2010 5
