Skyview Dealtrade Pvt. Ltd., Siliguri V. DCIT, Cent. Cir-2(1), Kolkata, Kolkata

ITA 482/KOL/2022

AI Insights

Skyview Dealtrade Pvt. Ltd appealed against the order of the Commissioner of Income Tax (Appeals)-20, Kolkata, which confirmed the additions made by the Assessing Officer regarding unexplained share capital and unsecured loans, and disallowed expenses. Initially, these additions were made in an ex parte assessment under section 144 of the Income Tax Act due to the assessee's failure to provide satisfactory explanations or documents. However, in subsequent proceedings under section 153C read with section 143(3), the assessee provided sufficient documentation, leading to the acceptance of the returned income by the Assessing Officer. The Tribunal, considering the peculiar facts and circumstances, decided not to restore the matter to the Assessing Officer, citing the principle of avoiding multiplicity of litigation and accepted the findings of the subsequent assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128351 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-05-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 25-08-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Search and seizure
• Section: 132; 144; 143(3); 133A; 250; 153C

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘‘ए’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी ͬगरȣश अĒवाल, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T.A. No.482/Kol/2022 Assessment Year: 2012-13 Skyview Dealtrade Pvt. Ltd............................................................... Appellant H. No.VL/100/A/14, Skyview Building, 40, Sevoke Road, Siliguri, Darjeeling-734001. [PAN: AAOCS1326G] vs. DCIT, Central Circle-2(1), Kolkata................................................... Respondent Appearances by: Shri Pranobesh Sarkar, Adv., appeared on behalf of the appellant. Smt. Ranu Biswas, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : May 04, 2023 Date of pronouncing the order : May 25, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 24.01.2022 of the Commissioner of Income Tax (Appeals)- 20, Kolkata [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The assessee in this appeal has contested the addition made by the Assessing Officer and further confirmed by the CIT(A) in respect of share capital of Rs.3,49,87,796/- and unsecured loans of Rs.34,83,745/- received by the assessee which have been treated by the lower authorities as unexplained income of the assessee and further of disallowance of expenditure claimed of Rs.38,973/-. The impugned additions were made by the Assessing Officer on account of the failure I.T.A. No.482/Kol/2022 Assessment Year: 2012-13 Skyview Dealtrade Pvt. Ltd 2 of the assessee to satisfactorily explain the transactions in question. Since the assessee did not furnish any documents in support of the transactions, the Assessing Officer made the impugned additions in an ex parte assessment carried out u/s 144 of the Income Tax Act. 3. The undisputed fact is that the return of income for the assessment year 2012-13 was filed 28.09.2012 by the assessee disclosing total income at nil. Thereafter, a search and seizure operation u/s 132 of the Act was conducted in the case of Choudhary group of assessees. Consequent to said search and seizure operation on Choudhary group, a survey u/s 133A was also conducted on 24.10.2013. During the said search operation, various documents were seized out of which certain documents were found belonging to the assessee. Thereafter, a notice u/s 153C of the Act was issued on 16.10.2015 asking the assessee to file correct return of total income. In the meantime, the concerned Assessing Officer completed the assessment proceedings in relation to the original return filed by the assessee on 28.09.2012 and passed the impugned assessment order dated 17.03.2015. But in the parallel proceedings, after the search action, the assessment was carried out in the case of the assessee by the Assessing Officer i.e. DCIT, Central Circle-2(2), Kolkata u/s 153C r.w.s 143(3) of the Act, whereby, he accepted the return of income of the assessee. 4. Now, the contention raised by the assessee in this appeal is that in the earlier assessment order passed u/s 143(3) of the Act was an ex parte order u/s 144 of the Act. Since the assessee company failed to appear before the Assessing Officer, the Assessing Officer therefore made the impugned additions without verification of any documents. I.T.A. No.482/Kol/2022 Assessment Year: 2012-13 Skyview Dealtrade Pvt. Ltd 3 5. However, in the subsequent assessment proceedings, the above issues of share capital, unsecured loans and expenditure claimed were duly enquired by the Assessing Officer and in response to the queries made by the Assessing Officer, the assessee duly furnished the requisite documents and evidences to prove the identity and creditworthiness of the creditors/share subscribers and genuineness of the transaction and even the other claim of expenditure was also considered. The Assessing Officer was satisfied with the submissions made by the Assessing Officer and accepted the returned income. The ld. AR therefore has submitted that since in the subsequent assessment proceedings the issue has been examined and the returned income has been accepted, therefore, the additions made in the earlier ex parte assessment order are not sustainable. He has submitted that even if the Tribunal will restore the matter to the Assessing Officer to decide the issue afresh, no useful purpose will be served as the issue has already been looked into and decided on merits by the Assessing Officer in the subsequent assessment proceedings. 6. It is pertinent to mention here to verify the aforesaid aspects, the ld. DR has also called a report from the Assessing Officer. In the said report, it has been mentioned that while passing the assessment order u/s 153C of the Act, the then Assessing Officer, DCIT, Central Circle- 2(2), Kolkata has given a note which read as under: “The case was earlier assessed u/s 144 of the Income Tax Act, 9161 on 17.03.2015 by DCIT, CC-2(1), Kolkata. Addition was made on account of share capital amounting to Rs.3,49,87,796/-, unsecured loan amounting Rs.34,83,745/- and disallowance of expenses amounting to Rs.38,973/-. Total income was assessed at Rs.3,84,33,520/-. The assessee had preferred an appeal before the Ld. Commissioner of Income Tax (Appeals), Central-1, Kolkata which is pending as on date. During the course of current assessment proceeding u/s 153C read with section 143(3), the assessee has furnished documentary evidences in connection with receipt of share capital, unsecured loans and expenses which have I.T.A. No.482/Kol/2022 Assessment Year: 2012-13 Skyview Dealtrade Pvt. Ltd 4 been verified and considered while finalizing the assessment proceedings.” A perusal of the above note would show that the Assessing Officer has categorically mentioned that the assessee has furnished documentary evidences in connection with receipt of share capital, unsecured loans and expenses which have been verified and considered while finalising the assessment proceedings. Considering the above peculiar factual position of this case, we are of the view that since the earlier assessment proceedings were ex parte assessment proceedings and since in the subsequent assessment proceedings, the issue has been examined and considered by the Assessing Officer and hence, no useful purpose will be served in restoring the same issue again to the file of the Assessing Officer as it would amount to multiplicity of litigation. Considering the above report and subsequent assessment order, we are of the view that the additions made pursuant to the original ex parte assessment order which are subject matter of the present appeal, are not sustainable and the same are accordingly ordered to be deleted. Before parting, it is pertinent to mention here that our above order has been passed considering the peculiar facts and circumstances of the present case and the same cannot be taken as precedent or of persuasive value in any other case. 7. In the result, the appeal of the assessee stands allowed. Kolkata, the 25 th May, 2023. Sd/- Sd/- [ͬगरȣश अĒवाल /Girish Agrawal] [संजय गग[ /Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 25.05.2023. RS I.T.A. No.482/Kol/2022 Assessment Year: 2012-13 Skyview Dealtrade Pvt. Ltd 5 Copy of the order forwarded to: 1. Skyview Dealtrade Pvt. Ltd 2. DCIT, Central Circle-2(1), Kolkata 3.CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches