Venketshwara Tex -O-Fab, Pvt.Ltd., Surat V. Income Tax Officer, Ward-4(4), Surat

ITA 2609/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8727 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 06-06-2017
• Assessment Year: 2004-2005
• Appeal Filed On: 23-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Reopening of assessment
• Section: 143(3)

Judgement Text

ITA NO. 2 609 /AHD/ 201 4 ASSESSMENT YEAR : 20 04 - 05 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR , AM AND MAHAVIR PRASAD , JM] ITA NO. 2 609 / AHD / 2 0 1 4 ASSESSMENT YEAR: 20 04 - 05 VENKATESHWARA TEX - O - FAB PVT. LTD., ....... ...........APPELLANT C/ O. ASHWIN PAR EKH & CO., 410, KASHI PLAZA, MAJURA GATE, SURAT 395 001 . [PAN : A A ACV 9976 F ] VS. INCOME TAX OFFICER, WARD 4(4), SURAT. ............................RESPONDENT APPEARANCES BY: NONE FOR THE APPELLANT PRASOON KABRA FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : 2 4.07. 2017 DATE OF PRONOUNCING THE ORDER : 1 7 .08.2017 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 24 T H JULY 201 4 , PASSED BY THE L EARNED CIT(A) - II , SURAT , IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT , 1961 ( THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR 2 0 04 - 05 , ON THE FOLLOWING GROUND S : - 1. THE LD. CIT(A) HAS GRIEVOU SLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.25,00,000/ - U/S. 68 OF THE ACT ON ACCOUNT OF SHARE CAPITAL ACCEPTED FROM 5 COMPANIES AS INTER - CORPORATE INVESTMENT WITHOUT APPRECIATING THE COMPLETE EVIDENCES OF RETURN OF INCOME OF SHARE HOLDE RS, THEIR BALANCE SHEET, BANK STATEM ENT , SHARE ALLOTMENT FORM AND SHARE APPLICATIONS SUBMITTED TO ASSESSING OFFICER. THE ADDITION OF RS.25,00,000/ - SHOULD BE DELETED. ITA NO. 2 609 /AHD/ 201 4 ASSESSMENT YEAR : 20 04 - 05 PAGE 2 OF 3 2. THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.25,00,000/ - U/S.68 OF THE ACT ON ACCOUNT OF SHARE CAPITAL ACCEPTED FROM 5 COMPANIES WHEREAS THE CASE WAS REOPENED FOR TAXING THE SHARE CAPITAL OF RS.5,00,000/ - FROM ONE COMPANY AND THEREBY EXCEEDED THE JURISDICTION. THE ADDITION OF RS.25,00,000/ - SH OULD THEREFORE, BE DELETED. 3. THE LEARNED CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE REOPENING OF ASSESSMENT U/S.147 OF THE ACT AS ASSESSMENT CANNOT BE REOPENED FOR TAXING THE SHARE CAPITAL AS INCOME OF THE COMPANY. THE REOPENING S HOULD , THEREFORE, BE HELD AS NULL AND VOID . 2. IT IS NOTICED THAT WHEN THE MATTER CAME UP FOR HEARING, NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE APPELLANT . THE NOTICE OF HEARING WAS SENT TO THE ASSESSEE BY REGISTERED POST AS PER THE ADDRESS GIVEN IN COLUMN NO.10 OF FORM NO.36 WHICH HAS COME BACK UN - SERVED WITH THE POSTAL REMARK LEFT . NO INFORMATION REGARDING CHANGE OF ADDRESS IS AVAILABLE ON RECORD. FROM THIS, IT IS REASONABLE TO INFER THAT THE ASSESSEE IS NOT SERIOUS TO PURSUE ITS CASE. HON BLE SUPREME COURT IN THE CASE OF CIT VS. B.N. BHATTACHARGEE AND ANOTHER, 118 ITR 461(SC) OBSERVED THAT PREFERRING AN APPEAL MEANS EFFECTIVELY PURSUING IT. HON BLE M.P. HIGH COURT IN THE CASE OF ESTATE OF LATE TUKOJIRAO HOLKAR VS. CWT, 223 ITR 480(M.P.) DI SMISSED THE REFERENCE FILED BY THE ASSESSEE FOR NOT TAKING NECESSARY STEPS. SIMILAR VIEW IS TAKEN BY I.T.A.T., DELHI BENCH IN THE CASE OF MULTIPLAN INDIA LTD., 38 ITD 320. CONSIDERING THE ABOVE, IT APPEARS THAT THE ASSESSEE IS NOT INTERESTED IN PROSECUTI NG ITS APPEAL. WE , THEREFORE, DISMISS THE APPEAL FILED BY THE ASSESSEE FOR NON - PROSECUTION. 3. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 17 TH DAY OF AUGUST, 2017. SD/ - SD/ - MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 17 TH DAY OF AUGUST, 2017 ITA NO. 2 609 /AHD/ 201 4 ASSESSMENT YEAR : 20 04 - 05 PAGE 3 OF 3 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD