M/s. Shreedhan Mercantile Pvt. Ltd., , Kolkata V. ITO, Ward - 1(4) , Kolkata

ITA 2688/KOL/2018

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 9617 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 27-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Income from undisclosed sources; Opportunity of being heard
• Section: 131; 68; 143(3); 142(1); 143(2)

Judgement Text

1. ITA No. 2688/Kol/2018 AY 2012-13 M/s. Sreehan Mercantile Pvt. Ltd. आयकर अपील य अ धकरण, पीठ “A” , कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL BENCH “A”KOLKATA सम : ी मनीष बोरड, लेखा एवं ी संजय शमा या यक सद य Before: Shri Manish Borad, Accountant Member and Shri Sonjoy Sarma, Judicial Member आयकर अपील सं.य/ ITA No.2688/Kol/2018 Assessment Year: 2012­13 M/s. Shreedhan Mercantile Pvt. Ltd. 70 Nalini Seth Road, Kolkata-700 007. बनाम V/s. Income Tax Officer, Ward 1(4), Aaykar Bhawan, 7 th Fl.,P-7 Chowringhee Square, Kolkata-700 069. PAN: AAQCS0723B अपीलाथ /Appellant .. यथ /Respondent अपीलाथ क ओर से/By Appellant None यथ क ओर से/By Respondent Shri Vijay Kumar, Addl. Ld.CIT/DR स ु नवाई क तार ख/Date of Hearing 21­09­2022 घोषणा क तार ख/ Date of Pronouncement 29 ­09 ­2022 आदेश /O R D E R PER MANISH BORAD, AM. This appeal of the assessee for the assessment year 2012­13 is directed against the order dt. 24­01­2017 passed by the ld. Commissioner of Income­tax, Appeals [ in short, hereafter referred to as ‘the ‘ld. CIT(A)­1, Kolkata. 2. ITA No. 2688/Kol/2018 AY 2012-13 M/s. Sreehan Mercantile Pvt. Ltd. 2. Registry has informed that the appeal is time barred by 18 days. Condonation application has been filed by the assessee requesting for condonation of delay. It has been stated by the assessee that the learned Commissioner of Income Tax (Appeals) ­ 1, Kolkata has passed an ex-parte order in the above case. The said order was received by the appellant on 11/10/2018. The appellant assessee had forwarded the said order to its Chartered Accountant who was looking after the case. As per the said Chartered Accountant, as the order was an ex-parte one, the CIT (A)­I, Kolkata had powers to re­institute the appeal upon request of the appellant. However, when no such request was filed, even after continuous follow up of the appellant, the appellant consulted a senior counsel. The senior counsel informed the appellant that there was no such provision in law to re­ institute the appeal before the Ld. CIT (A)­I, Kolkata. As such the only remedy available with the appellant was to file an appeal before the Honourable ITAT, Kolkata. By the time the appellant assessee came across the above fact it was already 24/12/2018. The due date for filling the appeal before the Honourable ITAT, Kolkata was 10/12/2018. The appellant without wasting any further time decided to file the appeal before the Honourable ITAT, Kolkata. As it can be seen from the above that the appellant could not file the appeal within time for the reasons as discussed aforesaid, which was due to a wrong advice of the erstwhile consultant. We have perused the application for condonation of delay and find that the assessee was prevented by sufficient reason from filing the appeal in time. Therefore, the impugned delay of 18 days is condoned and the appeal is admitted for adjudication on merits. 3. ITA No. 2688/Kol/2018 AY 2012-13 M/s. Sreehan Mercantile Pvt. Ltd. 3. When the case was called for, none appeared on behalf of assessee. A perusal of file shows that number of notices of hearing were sent including few through RP/AD, which have been returned unserved by the postal department. Asessee has not filed any paper book or written submissions. It seems that assessee is not interested to pursue this appeal. We, therefore, deem it proper to adjudicate the appeal on merits ex parte qua the assessee on the basis of material available on record and the assistance of the ld. DR. 4. The assessee has raised the following grounds of appeal for the AY 2012­13:­ 1. For the based on the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals)-1, Kolkata was not justified in upholding the addition made by the Ld. Assessing Officer of Rs. 2,23,75,000/- u/s. 68 of the Income –tax Act, 1961 without giving a reasonable opportunity of being heard to the assessee. 2.. That the appellant craves leave to add, alter, and/or modify the grounds taken herein. 5. Brief facts of the case are that the assessee is a private limited company. The source of income is stated to be from investment in shares. Income at Rs.3,880/­ declared in e­return of income filed on 18.10.2012 for the AY 2012­13. Case selected for scrutiny through CASS (Computer Assisted Scrutiny Selection) followed by serving of statutory notices u/s. 143(2) and 142(1) upon the assessee. The A/R of the assessee time to time appeared before the ld. AO and produced the copies of books of account, audited accounts and other relevant details/documents in support of return as filed. The ld. AO observed that the assessee company has received an amount of Rs. 2,23,75,000/­ as share subscription being share capital/share premium from the directors. Thereafter, the ld. AO issued notices u/s. 131 of the Act to 4. ITA No. 2688/Kol/2018 AY 2012-13 M/s. Sreehan Mercantile Pvt. Ltd. appear personally along with relevant details/documents for examination/verification of (i) identity (ii) existence/identity/sources of funds and creditworthiness (iii) genuineness of the transaction. But the alleged creditors who have subscribed the amounts in the assessee company did not appear before the ld.AO for the same and remained non­compliance. Therefore, the ld. AO proceeded to frame the assessment u/s. 143(3) of the Act on the basis of as material available before him. The ld. AO was not satisfied with the identity, creditworthiness and genuineness of said transaction of share capital/ share premium of Rs. 2,23,75,000/­ received by the assessee company from the alleged subscribers/creditors. He accordingly completed/passed the assessment u/s. 143(3) of the Act making addition u/s. 68 of the Act for unexplained cash credit of Rs. 2,23,75,000/­ and also disallowed Rs. 31,800/­ and assessed assessee’s income at Rs.2,24,10,680/­. 6. Aggrieved, the assessee preferred appeal before the ld. CIT(A) challenging the impugned addition made u/s. 68 of the Act at Rs. 2,23,75,000/­. Apart from filing appeal, the assessee made no further efforts before the ld. CIT(A) to appear are filed any other documentary evidence in support of its claim. As the assessee failed to do so, Ld. CIT(A) confirmed the addition. 7. Aggrieved, now the assessee is in appeal before this Tribunal. Again the assessee failed to appear before us on any of the dates of hearing. Except filing this appeal and an affidavit for condonation of delay no other details are filed. It clearly indicates that the assessee is only trying to delay the proceeding and has nothing to place on record. 5. ITA No. 2688/Kol/2018 AY 2012-13 M/s. Sreehan Mercantile Pvt. Ltd. On the other hand, the ld. DR vehemently argued supporting the orders of lower authorities and prayed for confirming the order of ld. CIT(A). 8. We have heard the ld. DR and perused the material placed on record before us. The assessee has challenged the finding of the ld. CIT(A) confirming the addition made u/s. 68 of the Act at Rs. 2,23,75,000/­ by the ld.AO for unexplained cash credits of share capital and security premium received during the year. We notice that the assessee company had offered meagre income of Rs.3,880/­ for the AY 2012­13. The assessee company has been able to procure share capital/share premium at Rs. 2,23,75,000/­ Statutory notice u/s. 131 of the Act duly served upon the alleged directors but none complied. Assessee failed to produce the alleged shareholders before the ld.AO for identity, creditworthiness and genuineness of the transaction. Even after providing sufficient opportunity no submission was made either before the ld.AO and ld. CIT(A) nor before us. The assessee was asked to explain the cash credits received by it during the year. The assessee failed to file necessary details to explain the source of alleged cash credit and also unable to prove identity, creditworthiness of the cash creditors as well as genuineness of the transaction as per section 68 of the Act. The assessee company has miserably failed to explain the source of alleged cash credit. If the assessee had sufficient details to explain the alleged sum, it could have certainly filed those details. Consistently escaping from appearing before the ld. AO and the appellate authority(ld.CIT­A) indicates that the assessee has no plausible explanation to explain the source of alleged sum of share capital and security premium. If the assessee is unable to explain the alleged cash credit and consistent escaped, the provisions of section 68 6. ITA No. 2688/Kol/2018 AY 2012-13 M/s. Sreehan Mercantile Pvt. Ltd. of the Act are attracted. Thus, it is held that the assessee has routed its unaccounted income in the books of account in the form of share capital and security premium by arranging bogus share capital and share premium through accommodation entry provider. 9. Therefore, under these facts and circumstances, we find no infirmity in the finding of the ld. CIT(A) confirming the addition of Rs.2,23,75,000/­ made u/s. 68 of the Act and the same is confirmed. Thus, grounds of appeal raised by the assessee are dismissed. प रणामत: नधा रती क अपील खा रज क जाती है। 10. In the result, the appeal of the assessee is dismissed. आदेश ख ु ले यायपीठ म दनांक ...­09­2022 को उ घो षत। The order pronounced in the open Court on 29 .09.2022 Sd/­ Sd/­ ( SONJOY SARMA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated :29 ­09­2022 **PP/SPS आदेश क त ल प अ े षत / Copy of Order Forwarded to:­ 1.अपीलाथ /Appellant/: M/s. Shreedhan Mercantile Pvt. Ltd. 70 Nalini Seth Road, Kolkata-700 007. 2. यथ /Respondent/: Income Tax Officer, Ward 1(4), Aaykar Bhawan, 7 th Fl.,P-7 Chowringhee Square, Kolkata-700 069. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त­ अपील / CIT (A) 5. वभागीय त न ध, आयकर अपील य अ धकरण कोलकाता / DR, ITAT, Kolkata 6.गाड फाइल/Guardfile. By order/आदेश से, /True Copy/ Assistant Registrar ITAT, Kolkata