Radix Dealcom Pvt. Ltd., Kolkata V. ITO, Ward - 4(1), Kolkata , Kolkata

ITA 376/KOL/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8813 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 07-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S HALDER
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI J. SUDHAKAR REDDY, AM & SHRI S.S. GODARA, JM] I.T.A NO. 376/KOL/201 8 ASSESSMENT YEAR : 2014- 15 RADIX DEALCOM PVT. LTD. -VS- ITO, WA RD-4(1), KOLKATA [PAN: AADCR 9551 M] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI SUBASH AG ARWAL, ADVOCATE FOR THE RESPONDENT : SHRI S.HALDER, SR. DR DATE OF HEARING : 18.12.2018 DATE OF PRONOUNCEMENT : 28.12.2018 ORDER PER S.S. GODARA, JM 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISES AGAINST THE CIT(A)-2, KOLKATAS ORDER DATED 09.01.2018 PASSED IN CASE NO . 10762/CIT(A)-2/16-17, INVOLVING PROCEEDING U/S 144 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN INSTANT APPEAL CHALLENGES BOTH THE LOWER AUTHORITIES ACTION MAKING UNEXPLAINED INVEST MENTS ADDITION AMOUNTING TO RS. 5,85,00,000/- DURING THE COURSE OF ASSESSMENT AS AF FIRMED IN LOWER APPELLATE PROCEEDINGS. WE NOTICE AT THE OUTSET THAT BOTH THE LOWER PROCEEDINGS HAVE BEEN FINALIZED EX PARTE AGAINST THE ASSESSEE U/S 144 OF THE ACT. THE ASSESSEE DID NOT APPEAR IN LOWER APPELLATE PROCEEDINGS AS WELL. 2 ITA NO.376/KOL/2018 RADIX DEALCOM PVT. LTD. A.YR.2014-15 2 3. LEARNED COUNSEL FOR THE ASSESSEE FILES BEFORE US ITS BALANCE SHEET AS ON 31.03.2014, P & L A/C AS WELL AS NOTES TO ACCOUNTS. PAGE 6 OF THE PAPER BOOK STATES THAT ASSESSEES INVESTMENTS IN MUTUAL FUNDS AS ON 31.03.2014 TO BE RS. 5.85 CRORES IN ISSUE AND OPENING BALANCE THEREOF IS RS. 4.5 CRORES AS CARRIE D FORWARD FROM 31.03.2013. HIS CASE THEREFORE IS THAT BOTH THE LOWER AUTHORITIES HAVE I GNORED THE MOST VITAL FACT OF THE IMPUGNED INVESTMENT TO THE TUNE OF RS. 4.5 CRORES A S NOT TO HAVE BEEN MADE IN THE RELEVANT PREVIOUS YEAR. THE REVENUE ON THE OTHER HA ND STRONGLY SUPPORTS BOTH THE LOWER AUTHORITIES ACTION INVOKING THE IMPUGNED ADDITION. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO TH E RIVAL CONTENTIONS. IT EMERGES AT THE OUTSET THAT NEITHER THE ASSESSING OFFICER NOR CIT(A ) HAVE EXAMINED THE ASSESSEES BALANCE SHEET / OTHER DETAILS BEFORE MAKING THE IMP UGNED ADDITION IN ITS HANDS. THE FACT ALSO REMAINS THAT THE ASSESSEE HAD CHOSEN NOT TO AP PEAR EITHER BEFORE ASSESSING OFFICER OR THE CIT(A). WE THEREFORE DEEM IT APPROPRIATE THA T THE INSTANT SOLE ISSUE NEEDS TO BE RE- ADJUDICATED AS PER LAW SUBJECT TO PAYMENT OF CO ST FROM THE TAX PAYER IN DEPARTMENTS FAVOUR TO THE TUNE OF RS. 5000/-. THE ASSESSING OFF ICER SHALL FINALIZE THE CONSEQUENTIAL PROCEEDINGS AS PER LAW AFTER AFFORDING ADEQUATE OPP ORTUNITY OF HEARING TO ASSESSEE. 5. THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE COURT ON 28.12.2018 SD/- SD/- [J. SUDHAKAR REDDY] [ S.S.GODARA ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28.12.2018 SB, SR. PS 3 ITA NO.376/KOL/2018 RADIX DEALCOM PVT. LTD. A.YR.2014-15 3 COPY OF THE ORDER FORWARDED TO: 1. RADIX DEALCOM PVT. LTD., C/O, S.K. SULTANIA & CO . 14/3, CHALLAWALLA GULLY, NEAR PODDAR COURT, 1 ST FLOOR, KOLKATA-700012. 2. ITO, WARD-4(1), KOLKATA, P-7, CHOWRINGHEE SQUARE , KOLKATA-700069. 3..C.I.T(A).- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASS ISTANT REGISTRAR ITAT, KOLKATA BENCHES