RIDDHI SIDDHI GASES PRIVATE LIMITED, KEONJHAR V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), CUTTACK, CUTTACK

ITA 38/CTK/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8101 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 24-01-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE Riddhi Sidhi Gases Pvt Ltd.,At-Bhadrasahi, PO: Barbil, Dist: Keonjhar PAN/GIR No (Appellant This is an appeal filed by the assessee aga CIT(A), NFAC, Delhi Cuttack/10329/2016 2. Shri, P.K.Mishra ld Sr DR represented on behalf of the revenue. 3. It was submitted by ld AR that the issues in this appeal is in regard to the addition representing unexplained share application money to an extent of Rs.3,17,705/ submission that on the ground that notice issued u/s.133(6) of the Act to Shri S.K.Dash came to be returned by the postal department with the IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK ‘SMC’ BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL ITA No.38/CTK/2024 Assessment Year : 2014-15 hi Sidhi Gases Pvt Bhadrasahi, PO: Barbil, Dist: Keonjhar Vs. DCIT, Circle Cuttack PAN/GIR No.AADCR 1309 P (Appellant) .. ( Respondent Assessee by : Shri P.K.Mishra, Adv Revenue by : Shri S.C.Mohanty, ld Sr DR Date of Hearing : 27/0 Date of Pronouncement : 27/0 O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 2.1.2024 in Appeal No. 9/2016-17 for the assessment year 2014 P.K.Mishra, ld AR appeared for the assessee. Shri S.C.Mohanty, represented on behalf of the revenue. It was submitted by ld AR that the issues in this appeal is in regard to the addition representing unexplained share application money to an s.3,17,705/- received from Shri Saroj Kumar submission that on the ground that notice issued u/s.133(6) of the Act to Shri S.K.Dash came to be returned by the postal department with the Page1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, , CUTTACK JUDICIAL MEMBER DCIT, Circle-1(1), Respondent) P.K.Mishra, Adv : Shri S.C.Mohanty, ld Sr DR 03/2024 /03/2024 inst the order of the ld in Appeal No.CIT(A), 2014-15. d AR appeared for the assessee. Shri S.C.Mohanty, It was submitted by ld AR that the issues in this appeal is in regard to the addition representing unexplained share application money to an aroj Kumar Dash. It was the submission that on the ground that notice issued u/s.133(6) of the Act to Shri S.K.Dash came to be returned by the postal department with the ITA No.38/CTK/2024 Assessment Year : 2014-15 Page2 | 3 remark ‘not found’, the Assessing Officer treated the same as unexplained cash credit in the hands of the assessee. It was the submission that on appeal, the ld CIT(A) without appreciating that Shri Saroj Kumar Dash was brother-in-law of the Director of the assessee company and was directly involved in the day today activities of the assessee company and that the AO had completed the assessment in clear violation of the principles of natural justice made the disallowance, confirmed the disallowance made by the Assessing Officer. It was the submission that if the issues are restored to the file of the Assessing Officer, the assessee would be in a position to produce all the evidences, as required by the Assessing Officer to substantiate its case. 4. In reply, ld Sr DR vehemently supported the order of the Assessing officer and ld CIT(A). 5. I have considered the rival submissions. A perusal of the order of the ld CIT(A) in para ‘Decision’ shows that he has taken the stand that the assessee has failed to prove the genuineness and creditworthiness of the share applicants. A perusal of the assessment order shows that the notice issued u/s.133(6) of the Act was issued after 21.10.2016 to Shri Saroj Kumar Dash and the assessment order has been passed on 23.11.2016 clearly shows that adequate opportunity had not been granted to the assessee to substantiate its claim of share application money. This being so, in the interest of justice, the issues are restored to the file of the Assessing ITA No.38/CTK/2024 Assessment Year : 2014-15 Page3 | 3 Officer to pass fresh assessment order after granting the assessee adequate opportunity of being heard. 6. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 27/03/2024. Sd/- (George Mathan) JUDICIAL MEMBER Cuttack; Dated 27/03/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Rishi Sidhi Gases Pvt Ltd.,At-Bhadrasahi, PO: Barbil, Dist: Keonjhar 2. The Respondent: DCIT, Circle-1(1), Cuttack 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Cuttack 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//