Savile Distributors Pvt. Ltd., Kolkata V. I.T.O.,Ward-2(4), Kolkata

ITA 408/KOL/2019

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9339 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-09-2022
• Assessment Year: 2012-2013
• Appeal Filed On: 03-03-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 68; 143(3); 142(1); 14A; 143(2)

Judgement Text

1 408/Kol/2019 AY 2012-13 Savile Distributors P.Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL BENCH “A” KOLKATA Before: Shri Sanjay Garg, Judicial Member and Shri Manish Borad, Accountant Member ITA No. 408/Kol/2019 Assessment Year: 2012-13 Savile Distributors Pvt.Ltd. 40 C Chittaranjan Avenue, 3 rd Fl, Room No. 4 Kolkata-12. बनाम V/s. I.T.O. Ward 2(4), Kolkata AaykarBhawan, P-7 Chowringhee Sq, 7 th Fl., Kolkata-69. PAN:AAICS 7476H अपीलाथ /Appellant .. यथ /Respondent अपीलाथ क ओर से/ By Appellant/Assessee None यथ क ओर से/By Respondent/Department Shri Vijay Kumar,Addl.CIT Ld.DR स ु नवाई क तार ख/Date of Hearing 28-09-2022 घोषणा क तार ख/ Date of Pronouncement 31-10 -2022 आदेश /O R D E R PER MANISH BORAD, AM. This appeal of the assessee for the assessment years 2012-13 is directed against the order dt. 27-03-2018 passed by the ld. Commissioner of Income-tax (Appeals) [ in short, hereafter referred to as the ‘CIT-A’], Kolkata-1, which is arising out of the assessment order dt. 02-03-2015 framed u/s. 143(3) of the Income Tax Act, 2 408/Kol/2019 AY 2012-13 Savile Distributors P.Ltd. 1961 [ in short, hereinafter referred to as ‘the Act’] by the ITO, Ward 2(4)), Kolkata. 2. The assessee has raised the following grounds:- 1) For that the Ld. CIT(A) was not justified in dismissing the appeal of the Assessee ex-parte without affording reasonable opportunity of hearing 2) For that on the facts and in the circumstances of the case ,the Ld CIT (A) erred in confirming the addition of Rs 14,86,50,000/= 3) For that on the facts and the circumstances of the case ,the Ld CIT (A) erred in confirming the addition of Rs 19627/= u/s 14A 4) That the appellant craves leave to add, alter or delete all or any of the grounds of appeal. 3 3 When the case was called for none appeared on behalf of the assessee. Perusal of records shows that sufficient opportunity was provided and date of hearing was intimated through RPAD by the registry , but the same was returned/unserved. Thus, we decide to adjudicate the appeal on merit. The Ld. Departmental Representative vehemently argued supporting the orders of both the lower authorities. 4. We have heard the Ld. Departmental Representative and perused the record placed before us. We find that the assessee is a private limited company filed its e- return on 30-11-2012. The case was selected for scrutiny under CASS followed by serving of notices u/s. 143(2) and 142(1) of the Act. The ld. AO called for various details from the assessee to explain the source of share capital/share premium of Rs. 14,86,50,000/- The assessee failed to appear on the dates for which summons were issued and no details were filed. The ld. AO accordingly treated/added the alleged sum of Rs 14,86,50,000/- as 3 408/Kol/2019 AY 2012-13 Savile Distributors P.Ltd. unexplained income of the assessee u/s. 68 of the Act. He and also made disallowance u/s. 14A of the Act of Rs. 19,627/-. 5. Thereafter, assessee preferred appeal before ld. CIT(A). Even after providing numbers of opportunity assessee failed to appear. Accordingly, the ld. CIT(A) following the judgment of the Hon’ble Supreme Court in the case of H.M Esufall H.M Abdulali (1973) 90 ITR 271 confirmed both the disallowances/additions made u/s. 68 & 14A of the Act by the AO since no details were filed by the assessee to show that the additions made by the ld. AO were biased, irrational, vindictive or capricious. 6. Before us the assessee has challenged the findings of the ld. CIT(A) confirming the addition made u/s. 68/14A of the Act at Rs. 14,86,50,000/- & Rs.19,627/-. However, we find that the assessee is a habitual defaulter of escaping to appear before the ld.AO/ ld.CIT(A) and even before us. We notice that the assessee company having raised share capital/share premium of the magnitude of Rs. 14.86 crores and escaping from filing of relevant details to explain the source of alleged sum of Rs. 14,86,50,000/-. Since the assessee company has not filed any details to explain the source of alleged sum of share capital and share premium, it shows that the assessee company is a paper/shall company and has no explanation to put forth and the alleged sum is unaccounted income of assessee routed in the books of account through accommodation entry providers and paper companies. We, therefore, find no reason to interfere with the findings of the ld. CIT(A) confirming the additions of Rs. 14,86,50,000/- & Rs. 19,627/- made u/s. 68/14A of the Act. Therefore, we dismiss ground nos. 1, 2 & 3 raised by the 4 408/Kol/2019 AY 2012-13 Savile Distributors P.Ltd. assessee. Ground no. 4 is general in nature, which requires no adjudication. प रणामत: नधा रती क अपील खा रज क जाती है। 7. In the result, the appeal of the assessee is dismissed. आदेश ख ु ले यायपीठ म दनांक 31-10--2022 को उ घो षत। The order pronounced in the open Court on 31.10.2022 Sd/- Sd/- ( SANJAY GARG) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated :31 -10-2022 **PP/SPS आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1.अपीलाथ /Appellant/Assessee: Savile Distributors Pvt.Ltd. 40 C Chittaranjan Avenue, 3 rd Fl, Room No. 4 Kolkata-12. 2. यथ /Respondent/Department: I.T.O. Ward 2(4), Kolkata Aaykar Bhawan,P-7 Chowringhee Sq, 7 th Fl., Kolkata-69. 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, Kolkata6.गाड फाइल/Guardfile. By order/आदेश से, /True Copy/ Assistant Registrar ITAT, Kolkata