M/s S. K. Concrete (P) Ltd., Siliguri V. ITO, WD-2(3), Siliguri, Siliguri

ITA 444/KOL/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4897 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 14-03-2016
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

I.T.A. NO. 444/KOL./2016 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 444 /KOL/ 2016 ASSESSMENT YEAR: 2008-2009 M/S. S.K. CONCRETE (P) LIMITED,.................... .....................APPELLANT P & T ROAD, JALPAIMORE, SILIGURI-734 005 [PAN : AAJCS 3213 K] -VS.- INCOME TAX OFFICER,................................ ............................RESPONDENT WARD-2(3), SILIGURI, AAYAKAR BHAWAN, PARIBAHANNAGAR, MATIGARA, SILIGURI-734 001 APPEARANCES BY: PARNASHREE BANERJEE, ADVOCATE, FOR THE ASSESSEE SHRI RAJAT KUMAR KUREEL, JCIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : MAY 04, 2016 DATE OF PRONOUNCING THE ORDER : MAY 06, 2016 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), SILIGURI DATE D 16.09.2015 FOR THE ASSESSMENT YEAR 2008-09, WHEREBY HE DISMISSED THE A PPEAL OF THE ASSESSEE EX PARTE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF TRADING IN IRON AND STEEL INCLUDING SCRAP. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED B Y IT DECLARING TOTAL INCOME OF RS.1,37,600/-. IN THE ASSESSMENT ORIGINAL LY COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 29.12.2010, ADDI TION OF RS.12,42,500/- WAS MADE BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF SHARE APPLICATION MONEY TREATING THE SAME AS UNEXPLAINED CASH CREDITS. ON APPEAL, THE LD. CIT(AP PEALS) CONFIRMED THE SAID ADDITION MADE BY THE ASSESSING OFFICER. ON FUR THER APPEAL, THE I.T.A. NO. 444/KOL./2016 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 4 TRIBUNAL RESTORED THE ISSUE RELATING TO THE ADDITIO N UNDER SECTION 68 TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE SAME AFRESH. AS PER THE DIRECTION OF THE TRIBUNAL, A FRE SH ORDER UNDER SECTION 143(3) READ WITH SECTION 254 WAS PASSED BY THE ASSE SSING OFFICER ON 31.03.2014, WHEREIN HE REPEATED THE ADDITION OF RS. 12,42,500/- MADE ON ACCOUNT OF SHARE APPLICATION MONEY TREATING THE SAM E AS UNEXPLAINED CASH CREDITS HOLDING THAT THE ASSESSEE COULD NOT SUBSTAN TIATE THE CREDITWORTHINESS OF THE CONCERNED CREDITORS AS WELL AS THE GENUINENESS OF THE RELEVANT TRANSACTIONS. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3) READ WITH SECTION 254, THE ASSESSEE AGAIN WE NT IN APPEAL BEFORE THE LD. CIT(APPEALS). DURING THE COURSE OF APPELLAT E PROCEEDINGS BEFORE THE LD. CIT(APPEALS), THE ASSESSEE SOUGHT ADJOURNME NTS OF THE HEARINGS FIXED ON 5-6 OCCASIONS AND GRANTING THE ADJOURNMENT S AS SOUGHT BY THE ASSESSEE FROM TIME TO TIME, THE APPEAL OF THE ASSES SEE WAS FINALLY FIXED FOR HEARING BY THE LD. CIT(APPEALS) ON 14.09.2015. ON 14.09.2015, NONE, HOWEVER, APPEARED ON BEHALF OF THE ASSESSEE NOR ANY WRITTEN REPLY WAS FILED. THE LD. CIT(APPEALS), THEREFORE, PRESUMED TH AT THE ASSESSEE HAD NOTHING TO SAY IN SUPPORT OF THE GROUND TAKEN IN TH E APPEAL AND ACCORDINGLY HE PROCEEDED TO CONFIRM THE ADDITION MA DE BY THE ASSESSING OFFICER ON ACCOUNT OF SHARE APPLICATION MONEY THERE BY DISMISSING THE APPEAL OF THE ASSESSEE. AGAINST THE ORDER OF THE LD . CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBU NAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERV ED THAT ON MOST OF THE OCCASIONS WHEN ITS APPEAL WAS FIXED FOR HEARING BEF ORE THE LD. CIT(APPEALS), THE ASSESSEE SOUGHT ADJOURNMENTS ON O NE GROUND OR THE OTHER. THE LD. CIT(APPEALS) ALSO GRANTED THE ADJOUR NMENTS AS SOUGHT BY THE ASSESSEE FROM TIME TO TIME AND FIXED THE APPEAL OF THE ASSESSEE FOR HEARING FINALLY ON 14.09.2015 AND SINCE THE ASSESSE E FAILED TO APPEAR BEFORE HIM ON THE SAID DATE, THE LD. CIT(APPEALS) D ISMISSED THE APPEAL OF I.T.A. NO. 444/KOL./2016 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 4 THE ASSESSEE VIDE HIS IMPUGNED ORDER PASSED EX PART E PRESUMING THAT THE ASSESSEE HAD NOTHING TO SAY IN SUPPORT OF THE GROUN D RAISED IN THE APPEAL. 5. AT THE TIME OF HEARING BEFORE ME, THE LD. COUNSE L FOR THE ASSESSEE HAS SUBMITTED THAT SHRI G.S. HORA, CHARTERED ACCOUN TANT, WHO WAS AUTHORIZED TO REPRESENT THE CASE OF THE ASSESSEE BE FORE THE LD. CIT(APPEALS) COULD NOT APPEAR ON 14.09.2015 OWING T O THE SUDDEN SICKNESS OF HIS FAMILY MEMBER AND HE ALSO FAILED TO FILE EVEN THE ADJOURNMENT PETITION DUE TO MENTAL AGONY. HE HAS AL SO FILED AN AFFIDAVIT OF SHRI G.S. HORA AFFIRMING THE RELEVANT FACTS ON O ATH. KEEPING IN VIEW THIS SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE, WHI CH IS DULY SUPPORTED BY THE AFFIDAVIT OF THE CONCERNED CHARTERED ACCOUNTANT , I AM SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON-APPEARANCE ON BEHALF OF THE ASSESSEE ON 14.09.2015 WHEN ITS APPEAL WAS FIXED FO R HEARING BEFORE THE LD. CIT(APPEALS). IN THAT VIEW OF THE MATTER, I SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX PARTE AND R EMIT THE MATTER BACK TO HIM WITH A DIRECTION TO DISPOSE OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT AFTER GIVING ONE MORE OPPORTUNITY OF BEING HE ARD TO THE ASSESSEE. AS UNDERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE A T THE TIME OF HEARING BEFORE ME, THE ASSESSEE SHALL NOT SEEK ANY ADJOURNM ENT AND SHALL EXTEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENABLE THE LD. CIT(APPEALS) TO DISPOSE OF ITS APPEAL EXPEDITIOUSLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON MAY 06, 2016. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 6 TH DAY OF MAY, 2016 COPIES TO : (1) M/S. S.K. CONCRETE (P) LIMITED, P & T ROAD, JALPAIMORE, SILIGURI-734 005 I.T.A. NO. 444/KOL./2016 ASSESSMENT YEAR: 2008-2009 PAGE 4 OF 4 (2) INCOME TAX OFFICER, WARD-2(3), SILIGURI, AAYAKAR BHAWAN, PARIBAHANNAGAR, MATIGARA, SILIGURI-734 001 (3) COMMISSIONER OF INCOME TAX (APPEALS), SILIGURI ; (4) COMMISSIONER OF INCOME TAX- , KOLKATA; (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.