M/s. Mangaldham Commodeal Pvt. Ltd., , Kolkata V. ITO, Ward - 4(2) , Kolkata

ITA 2493/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4764 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 29-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANKAR HALDAR
• Assessee Lawyers: SOUMITRO CHOUDHURY; JOYDEB C HAKRABORTY
• Keywords: Unexplained cash credit
• Section: 131; 143(3)

Judgement Text

ITA NO. 2493/KOL/2018 ASSESSMENT YEAR: 2012-2013 M /S. MANGALDHAM COMMODEAL PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) AND SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 2493/KOL/2018 ASSESSMENT YEAR: 2012-2013 M/S. MANGALDHAM COMMODEAL PVT. LIMITED,............ ...............APPELLANT 33/1, NETAJI SUBASH ROAD, KOLKATA-700 001 [PAN: AAICM 3812 D] -VS.- INCOME TAX OFFICER,................................ ...................................RESPONDENT WARD-4(2), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI SOUMITRO CHOUDHURY, ADVOCATE AND SHRI JOYDEB C HAKRABORTY, ADVOCATE, FOR THE APPELLANT SHRI SANKAR HALDAR, JCIT, SR. D.R. , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : FEBRUARY 8, 2019 DATE OF PRONOUNCING THE ORDER : FEBRUARY 15, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ):- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-9, KOLKATA DAT ED 08.10.2018 PASSED EX-PARTE DISMISSING THE APPEAL OF THE ASSESS EE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, WHICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION D ECLARING ITS TOTAL INCOME AT NIL. DURING THE COURSE OF ASSESSMENT PROC EEDINGS, SUMMONS UNDER SECTION 131 WERE ISSUED BY THE ASSESSING OFFI CER TO THE CONCERNED SHAREHOLDERS, WHO CONTRIBUTED THE SHARE CAPITAL OF THE ASSESSEE TO THE TUNE OF RS.2,66,00,000/- INCLUDING SHARE PREMIUM OF RS.2,54,49,000/-. THERE WAS, HOWEVER, NO RESPONSE TO THE SAID SUMMONS AND SOME OF THE ITA NO. 2493/KOL/2018 ASSESSMENT YEAR: 2012-2013 M /S. MANGALDHAM COMMODEAL PVT. LIMITED 2 SUMMONS WERE ALSO RETURNED UNDELIVERED BY THE POSTA L AUTHORITIES. WHEN THIS POSITION WAS CONFRONTED BY THE ASSESSING OFFIC ER TO THE ASSESSEE- COMPANY, THE ASSESESE-COMPANY ALSO FAILED TO PRODUC E THE CONCERNED SHAREHOLDERS FOR EXAMINATION BEFORE THE ASSESSING O FFICER. THE ASSESSING OFFICER, THEREFORE, TREATED THE ENTIRE SHARE CAPITA L OF RS.2,66,00,000/- INCLUDING SHARE PREMIUM AS UNEXPLAINED CASH CREDIT AND MADE ADDITION TO THAT EXTENT TO THE TOTAL INCOME OF THE ASSESSEE IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 28.03.2015. 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 SATISFACTORY CO MPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DIS MISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 08.10.2 018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ALTHOUGH THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE-COMPANY NO W IS IN A POSITION TO PRODUCE THE CONCERNED SHAREHOLDERS FOR EXAMINATION BEFORE THE ASSESSING OFFICER AND HAS SOUGHT ONE OPPORTUNITY BY SENDING T HE MATTER BACK TO THE ASSESSING OFFICER, WE ARE OF THE VIEW THAT SUCH OPP ORTUNITY CAN JUSTIFIABLY BE GIVEN TO THE ASSESSEE ONLY SUBJECT TO PAYMENT OF COST OF RS.5,000/- KEEPING IN VIEW THE CASUAL AND NEGLIGENT APPROACH O F THE ASSESSEE IN COMPLYING WITH THE NOTICES ISSUED BY THE ASSESSING OFFICER AND LD. CIT(APPEALS). WE ACCORDINGLY SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) PASSED EX-PARTE AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH AFTE R GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE CONCERNE D SHAREHOLDERS FOR ITA NO. 2493/KOL/2018 ASSESSMENT YEAR: 2012-2013 M /S. MANGALDHAM COMMODEAL PVT. LIMITED 3 EXAMINATION ALONG WITH NECESSARY SUPPORTING DOCUMEN TARY EVIDENCE SUBJECT TO PAYMENT OF COST OF RS.5,000/- TO THE INC OME TAX DEPARTMENT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 15, 2019. SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER VIC E-PRESIDENT (KZ) KOLKATA, THE 15 TH DAY OF FEBRUARY, 2019 COPIES TO : (1) M/S. MANGALDHAM COMMODEAL PVT. LIMITED, 33/1, NETAJI SUBASH ROAD, KOLKATA-700 001 (2) INCOME TAX OFFICER, WARD-4(2), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-9, KOLKAT A,, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.