M/s Satyalaxmi Merchants Pvt. Ltd., Kolkata V. I.T.O.,Ward-2(4), Kolkata

ITA 2305/KOL/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3475 (ITAT-KOLKATA)
• Duration Of Justice: 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 15-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAUL
• Assessee Lawyers: JOYDEEP CHAKRABORTY
• Keywords: Unexplained cash credit; Rule 8D; Set aside
• Section: 143(3); 14A; 131; 68

Judgement Text

ITA NO. 2305/KOL/2019 ASSESSMENT YEAR: 2012-2013 M/S. SATYALAXMI MERCHANTS PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT AND SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 2305/KOL/2019 ASSESSMENT YEAR: 2012-2013 M/S. SATYALAXMI MERCHANTS PVT. LIMITED,............ ........................APPELLANT 7, GANESH CHANDRA AVENUE, 5 TH FLOOR, KOLKATA-700013 [PAN: AARCS1021R] -VS.- INCOME TAX OFFICER,................................ .....................................RESPONDENT WARD-2(4), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 APPEARANCES BY: SHRI SOUMITRA CHOUDHURY, ADVOCATE & SHRI JOYDEEP CH AKRABORTY, ADVOCATE, FOR THE APPELLANT SHRI SUPRIYO PAUL, JCIT, FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : NOVEMBER 08, 2019 DATE OF PRONOUNCING THE ORDER : NOVEMBER 08, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-17, KOLKATA DA TED 19.07.2019 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF INVESTMENT AND TRADING IN SHARES. T HE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 04.09.2012 DECLARING TOTAL INCOME AT NIL. DURING THE COURSE OF ASSESSM ENT PROCEEDINGS, THE CLAIM OF THE ASSESSEE OF HAVING RECEIVED SHARE APPL ICATION MONEY ALONG ITA NO. 2305/KOL/2019 ASSESSMENT YEAR: 2012-2013 M/S. SATYALAXMI MERCHANTS PVT. LIMITED 2 WITH SHARE PREMIUM AMOUNTING TO RS.5,03,00,000/- WA S EXAMINED BY THE ASSESSING OFFICER. DURING THE COURSE OF THE SAID EX AMINATION, SUMMONS UNDER SECTION 131 WERE ISSUED BY THE ASSESSING OFFI CER TO THE DIRECTOR OF THE ASSESSEE-COMPANY AS WELL AS THE DIRECTORS OF TH E SHARE SUBSCRIBER COMPANIES. THE SAID SUMMONS, HOWEVER, REMAINED UN-C OMPLIED WITH. KEEPING IN VIEW THE SAID NON-COMPLIANCE AS WELL AS IN THE ABSENCE OF THE RELEVANT DETAILS AND DOCUMENTS FURNISHED BY THE ASS ESSEE TO ESTABLISH THE IDENTITY AND CAPACITY OF THE CONCERNED SHARE SUBSCR IBERS AS WELL AS THE GENUINENESS OF THE RELEVANT TRANSACTIONS, THE ASSES SING OFFICER TREATED THE ENTIRE SHARE APPLICATION MONEY ALONG WITH SHARE PREMIUM AMOUNTING TO RS.5,03,00,000/- AS UNEXPLAINED CASH CREDIT AND ADDITION UNDER SECTION 68 TO THAT EXTENT WAS MADE BY HIM TO THE TOTAL INCO ME OF THE ASSESSEE. HE ALSO MADE A FURTHER ADDITION OF RS.12,990/- ON ACCO UNT OF DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D AND DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT RS.5,03,12,990/- IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 02.03.2015. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO COMPLIANCE ON T HE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SA ID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DISMISSED T HE APPEAL OF THE ASESSEE VIDE HIS APPELLATE ORDER DATED 19.07.2019 P ASSED EX-PARTE THEREBY CONFIRMING BOTH THE ADDITIONS MADE BY THE A SSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, NONE OF THE NOTICES STATED TO BE ISSU ED BY THE LD. CIT(APPEALS) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING ON VARIOUS OCCASIONS WAS EVER RECEIVED BY THE ASSESSEE AND SUC H NON-RECEIPT OF ITA NO. 2305/KOL/2019 ASSESSMENT YEAR: 2012-2013 M/S. SATYALAXMI MERCHANTS PVT. LIMITED 3 NOTICES RESULTED INTO NON-APPEARANCE OF THE ASSESSE E WHEN ITS APPEAL WAS CALLED FOR HEARING BEFORE THE LD. CIT(APPEALS). HE HAS ALSO SUBMITTED THAT PROPER AND SUFFICIENT OPPORTUNITY WAS ALSO NOT GIVE N BY THE ASSESSING OFFICER TO COMPLY WITH THE SUMMONS ISSUED UNDER SEC TION 131 DURING THE COURSE OF ASSESSMENT PROCEEDINGS. HE HAS SUBMITTED THAT THE ASSESSEE IS IN A POSITION TO PRODUCE THE CONCERNED SHARE SUBSCR IBERS FOR EXAMINATION BEFORE THE ASSESSING OFFICER ALONG WITH THE RELEVAN T DOCUMENTARY EVIDENCE AND URGED THAT ONE OPPORTUNITY MAY BE AFFO RDED TO THE ASSESSEE TO DO SO. AS THE LD. D.R. HAS NOT RAISED ANY OBJECT ION FOR SENDING THE MATTER BACK TO THE ASSESSING OFFICER FOR THE REQUIR ED VERIFICATION OF THE EXAMINATION, WE SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR MAKING THE ASSESSMENT AFRESH AFTER GIVI NG ONE MORE OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE CONCERNE D SHARE SUBSCRIBERS ALONG WITH THE RELEVANT DOCUMENTARY EVIDENCE. AS UN DERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE D UE COMPLIANCE BEFORE THE ASSESSING OFFICER AND SHALL EXTEND ALL THE POSS IBLE COOPERATION IN ORDER TO ENABLE THE ASSESSING OFFICER TO MAKE THE A SSESSMENT AFRESH EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 08, 2019. SD/- SD/- (A.T. VARKEY) (P. M. JAGTAP) JUDICIAL MEMBER VICE-PRESIDENT) KOLKATA, THE 8 TH DAY OF NOVEMBER, 2019 COPIES TO : (1) M/S. SATYALAXMI MERCHANTS PVT. LIMITED, 7, GANESH CHANDRA AVENUE, 5 TH FLOOR, KOLKATA-700013 (2) INCOME TAX OFFICER, WARD-2(4), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-17, KOLK ATA, ITA NO. 2305/KOL/2019 ASSESSMENT YEAR: 2012-2013 M/S. SATYALAXMI MERCHANTS PVT. LIMITED 4 (4) COMMISSIONER OF INCOME TAX, KOLKATA- , KOLKATA; (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.