I.T.O.,Ward-1(2), Kolkata V. M/s Lifewood Carriers Pvt. Ltd., Kolkata

ITA 2422/KOL/2019

AI Insights

The case involves an appeal by the Income Tax Officer (ITO), Ward-1(2), Kolkata against M/s Lifewood Carriers Pvt. Ltd. concerning the assessment year 2012-13. The primary issue in the appeal was the deletion of an addition of Rs. 5,01,00,000 by the Commissioner of Income Tax (Appeals)-17, Kolkata, which was initially added by the AO under section 68 of the Income Tax Act as unexplained cash credit. The AO had raised concerns about the identity and creditworthiness of the shareholders and the genuineness of the transactions, which were allegedly not substantiated by the assessee. The CIT(A) had deleted the addition, leading to the revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127306 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2023
• Appeal Filed By: Department
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 17-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 07-11-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 131; 68

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘‘बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA ी राजेश क ु मार, लेखा सद य एवं ी संजय शमा या यक सद यके सम [Before Shri Rajesh Kumar, Accountant Member & Shri Sonjoy Sarma, Judicial Member] I.T.A. No. 2422/Kol/2019 Assessment Year: 2012-13 ITO, Ward-1(2), Kolkata Vs. M/s Lifewood Carriers Pvt. Ltd. (PAN: AACCL 5841 P) Appellant / (अपीलाथ ) Respondent / ( !यथ ) Date of Hearing / स ु नवाई क$ त&थ 18.01.2023 Date of Pronouncement/ आदेश उ)घोषणा क$ त&थ 19.01.2023 For the Appellant/ नधा /रती क$ ओर से Shri Soumitra Chowdhury, Advocate For the Respondent/ राज व क$ ओर से Shri Partha Pratim Barman, Addl. CIT ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-17, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 08.02.2019 for the AY 2012-13. 2. The issue raised in various grounds of appeal by the revenue is against the order of Ld. CIT(A) deleting the addition of Rs. 5,01,00,000/- as made the AO u/s 68 of the Act by ignoring the fact that the identity and creditworthiness of the share holders and genuineness of the transactions were not proved and summons issued u/s 131 of the Act to the assessee were not complied with. 2 I.T.A. No. 2422/Kol/2019 Assessment Year: 2012-13 M/s Lifewood Carriers Pvt. Ltd. 3. The Ld. D.R at the outset pointed out that the assessee has not made any compliance before the AO despite being issued questionnaire to prove the identity and creditworthiness of the share holders and genuineness of the transactions and even the summon issued u/s 131 of the Act to the share holders as well as the directors of the assessee company remained un-complied with. Finally The AO framed assessment by treating the amount involved of Rs. 5,01,00,000/- u/s 68 of the Act as unexplained cash credit. The Ld. D.R also submitted that the Ld. CIT(A) has simply deleted the addition by holding that there was no amount credited in the books of account of the assessee during the year and the shares were issued in consideration of investment made by the share holders. The Ld. D.R submitted that the Ld. CIT(A) has passed a very cryptic order without calling for remand report from the AO and therefore prayed that the issue may kindly be restored to the file of the AO so that it could be re- examined and the identity, creditworthiness of the investors and genuineness of the transactions could be looked into after calling for the necessary details/information /evidences from the assessee. 4. The Ld . A.R on the other hand strongly objected to the contentions of the Ld. D.R by submitting that though the information/details were not produced before the AO but all these were duly furnished before the Ld. CIT(A) and Ld. CIT(A) after accepting the contention of the assessee allowed relief to the assessee by giving detailed finding that no amount was credited in the books of account during the year. 5. After hearing the rival contentions and perusing the material available on record, we find that the assessee has failed to furnish any evidences/details before the AO in support of its claim besides failing to comply with the summons u/s 131 of the Act. Even the shareholders who subscribed to the shares of the assessee company did not make any compliance to the summons issued u/s 131 of the Act. We have also perused the order of Ld. CIT(A) wherein the Ld. CIT(A) has accepted the contentions of the assessee that shares were issued in consideration of the investments made by the share holders and no amount was credited in the books of account. We find merit in the contentions of the Ld. D.R that the AO has not verified the information and the 3 I.T.A. No. 2422/Kol/2019 Assessment Year: 2012-13 M/s Lifewood Carriers Pvt. Ltd. Ld. CIT(A) allowed the appeal of the assessee without calling for the remand report for getting this information verified from the AO. Under the circumstances we are of the view that the ends of justice would be met if the issue is restored back to the file of the AO to decide the same after affording a reasonable opportunity of hearing to the assessee by calling for various evidences/details to prove the genuineness of this transactions and identity and creditworthiness of the investors . Accordingly we restore the issue back to the file of the AO without commenting on the merits of the case and direct the AO to decide the same in accordance with the law after affording sufficient opportunity of hearing to the assessee. 6. In the result, the appeal of the revenue is allowed for statistical purpose. Order is pronounced in the open court on 19 th January, 2023 Sd/- Sd/- (Sonjoy Sarma /संजय शमा ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 19 th January, 2023 SB, Sr. PS Copy of the order forwarded to: 1. Appellant- ITO, Ward-1(2), Kolkata 2. Respondent – M/s Lifewood Carriers Pvt. Ltd., 5, Haspukur Lane, 2 nd By Lane, 4 th Floor, R. No. 58, Kolkata-700007 3. Ld. CIT(A)-17, Kolkata (Sent through e-mail) 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata