Utmost Commercial Private Limited , Kolkata V. ITO, Ward - 9(1), Kolkata , Kolkata

ITA 581/KOL/2018

AI Insights

The case involves Utmost Commercial Pvt. Ltd, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) regarding the assessment year 2012-13. The primary issue was the treatment of share application money as unexplained income by the Assessing Officer under section 68 of the Income Tax Act. The Assessing Officer had sought various details from the assessee to substantiate the identity, creditworthiness of share subscribers, and genuineness of the transactions, but no information was provided. The CIT(A) confirmed the addition due to non-representation and non-submission of required details by the assessee. The Tribunal dismissed the appeal, noting the assessee's continued non-cooperation and absence in legal proceedings.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 128179 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-10-2022
• Assessment Year: misc
• Appeal Filed On: 02-04-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Recovery proceedings; Source of fund
• Section: 68; 250

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.581/Kol/2018 Assessment Year: 2012-13 Utmost Commercial Pvt. Ltd....................................................... Appellant 4B, Nalini Seth Road, Kolkata-700007. [PAN: AABCU4205H] vs. ITO, Ward-9(1), Kolkata............................................................ Respondent Appearances by: None appeared on behalf of the appellant. Shri Biswanath Das, CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : November 22, 2022 Date of pronouncing the order December 12, 2022 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 21.02.2018 of the Commissioner of Income Tax (Appeals)- 18, Kolkata [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. Notice to the assessee relating to the date of hearing was sent through registered post. However, the same has been received back unserved with the remark of the postal authority “assessee cannot be located”. We further note that even there was no representation before the CIT(A) also and the impugned order of the CIT(A) has been passed ex parte of the assessee. A perusal of the assessment order reveals that the Assessing Officer had called for the following details from the assessee to prove the identity, creditworthiness of the share subscribers I.T.A. No.581/Kol/2018 Assessment Year: 2012-13 Utmost Commercial Pvt. Ltd 2 and genuineness of the transaction by way of issuing summons u/s 131 of the Act to the director of the assessee company: “1. Proof of identity-Voter Card/Passport/Driving license/PAN Card 2. List of companies where you were Directors/shareholders from the A.Y. 2008-09 till date with dates of appointments thereto with DIN 3. Proof of acknowledgement of filing IT Return alongwith copies of accounts and that of the companies where you have been director as mentioned above in SI. 2 for A.Yrs. 2010-11, 2011-12 & 2012-13. 4. All bank statements explaining debit & credit entries therein also highlighting the relevant entries with regard to the share capital investment. 5. Produce all investors (in case of company, the Managing Director) who have made investment in your company. 6. The source of fund in the hands of investors with their respective bank statement explaining all the debit/credit entries. 7. Identification of family members who are directors in the assessee company and their relationship. 8. A write-up on justification of large share premium.” 3. However, neither director of the assessee company appeared nor the required details were furnished, therefore, the Assessing Officer treated the share application money as unexplained income of the assessee u/s 68 of the Act. Since, neither anyone appeared nor any details furnished before the CIT(A) also, therefore, the ld. CIT(A) also, under the circumstances, left with no option than to confirm the addition. 4. We deem it appropriate to note here that in many cases though the assessee/appellant in whose case the additions have been made, are continuing with the contesting of additions by way of filing appeals but at the same time, they conceal their identity and address to avoid tax payment. The continuation of litigation by such assessees in such cases, in our view, is not only to delay the recovery of tax payment but I.T.A. No.581/Kol/2018 Assessment Year: 2012-13 Utmost Commercial Pvt. Ltd 3 also to avoid the tax payment by concealing its identity and address. The present case also seems to be such type of nature. In view of our observations made above, since neither any details furnished nor anyone has appeared before us, therefore, we do not find any reason to interfere with the order of the CIT(A) and the same is accordingly upheld. 4. In the result, the appeal of the assessee is hereby dismissed. Kolkata, the 12 th December, 2022. Sd/- Sd/- [ͬगरȣश अĒवाल /Girish Agrawal] [संजय गग[ /Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 12.12.2022. RS Copy of the order forwarded to: 1. Utmost Commercial Pvt. Ltd 2. ITO, Ward-9(1), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches