M/s. Akshayakalpa Farms and Foods Pvt Ltd, Tumkur V. Assistant Commissioner of Income Tax Circle-1 , Tumkur

ITA 26/BANG/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0556 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 04-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD SHARMA
• Keywords: Opportunity of being heard; Principle of natural justice; Fair market value
• Section: 56(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.26/BANG/2019 ASSESSMENT YEAR: 2015-16 M/S AKSHAYAKALPA FARMS AND FOOD PVT. LTD., NO.382/2, SHARDA NAGAR, TIPTUR. PAN AAICA 4264 B VS. THE ASST. COMMISSIONER OF INCOME-TAX CIRCLE-1, TUMKUR. APPELLANT RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI VINOD SHARMA, JCIT (DR) DATE OF HEARING : 17.09.2019 DATE OF PRONOUNCEMENT : 17.09.2019 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 6/11/2018 PASSED BY LD CIT(A)-7, BENGALURU AND IT R ELATES TO ASST. YEAR 2015-16. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. EVEN T HOUGH THE NOTICE OF HEARING WAS SENT BY REGISTERED POST ON TH E PRIOR OCCASION AND IT WAS DULY ACKNOWLEDGED BY THE ASSESSEE, YET T HE ASSESSEE DID NOT APPEAR FOR THE HEARING. HENCE WE PROCEED TO DI SPOSE OF THE APPEAL EX-PARTE, WITHOUT THE PRESENCE OF THE ASSESS EE. ITA NO.26/BANG/2019 PAGE 2 OF 4 3. WE HEARD LD DR AND PERUSED THE RECORD. WE NOTIC ED THAT THE ASSESSEE HAS NOT APPEARED BEFORE LD CIT(A) ALSO AND HENCE THE FIRST APPELLATE AUTHORITY WAS CONSTRAINED TO PASS ORDER E X-PARTE. 4. THE ISSUE CONTESTED BY THE ASSESSEE WAS RELATED TO VALUATION OF SHARES ON CONVERSION OF COMPULSORY CONVERTIBLE P REFERENCE SHARES (CCPS) INTO EQUITY SHARES. THE ASSESSEE HAD CONVER TED CCPS INTO EQUITY SHARES OF RS.10 EACH AT PRICE OF 17.52. HOW EVER, THE AO DETERMINED THE FMV OF EQUITY SHARES AT 12.80 PER SH ARE. ACCORDINGLY THE AO HAS ASSESSED EXCESS AMOUNT AGGRE GATING TO RS.50.79 LAKHS AS INCOME OF THE ASSESSEE U/S 56(2) (VIIB) OF THE ACT. THE LD CIT(A) CONFIRMED THE ADDITION AND HENCE THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE ALREADY NOTICED THAT THE ASSESSEE HAS NO T APPEARED BEFORE THE LD CIT(A) AND HENCE THE LD CIT(A) HAS PA SSED ORDER EX- PARTE. HOWEVER, IN THE INTEREST OF NATURAL JUSTICE , WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE PROVIDED WITH ONE MORE OPPORTUNITY TO PRESENT ITS CASE BEFORE LD CIT(A). HOWEVER, THE SA ME WILL BE AT COST. ACCORDINGLY WE IMPOSE A COST OF RS.5000/- (RUPEES F IVE THOUSAND) UPON THE ASSESSEE WHICH SHALL BE PAID TO THE CREDIT OF INCOME-TAX DEPARTMENT AS OTHER FEES WITHIN A PERIOD OF 2 MON THS FROM THE RECEIPT OF THIS ORDER. SUBJECT TO THE PAYMENT OF A BOVE FEES, ALL THE ISSUES CONTESTED IN THE PRESENT APPEAL ARE RESTORED TO THE FILE OF LD CIT(A) FOR ADJUDICATING THEM AFRESH, AFTER AFFORDIN G ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.26/BANG/2019 PAGE 3 OF 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER, 2019. SD/ - (BEENA PILLAI) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 17 TH SEPTEMBER, 2019. / VMS / COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE. ITA NO.26/BANG/2019 PAGE 4 OF 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. DICTATION NOTE ENCLOSED . 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER .