Carbon Edge Industries Limited , Kolkata V. ITO, Ward - 12(3), Kolkata , Kolkata

ITA 697/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5723 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 13-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHARY
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Unexplained cash credit
• Section: 143(3); 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B, KOLKATA BEFORE SH. S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 697/KOL/2018 [ASSESSMENT YEAR: 2012-13] M/S. CARBON EDGE INDUSTRIES LIMITED 238A, AJC BOSE ROAD, BHAWANIPUR, ROOM NO. 1A, 1 ST FLOOR, KOLKATA- 700020. PAN- AABCR2042K VS ITO WARD- 12(3), KOLKATA. (APPELLANT) (RESPONDENT) APPELLANT BY SH. MIRAJ D. SHAH RESPONDENT BY SH. ROBIN CHOUDHARY, DR DATE OF HEARING 2 2 .0 7 .201 9 DATE OF PRONOUNCEMENT 07 .08.201 9 ORDER PER SH. S.S.GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR AY 2012-13 ARISES AGAINST THE ORDER DATED 23.02.2018 PASSED BY THE CIT(A)- 4, KOLKATA IN APPEAL NO. 566/CIT(A)- 4/KOL/W.12(3)/2015-16 IN PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CHALLENGES BOTH THE LOWER AUTHORITIES ACTION TREATING ITS SHARE CAPITAL/PREMIUM SUM OF RS. 96,30,000/- AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT. IT TRANSPIRES AT THE OUTSET THAT THE CIT(A) HAS PASSED HIS LOWER APPELLATE ORDER EX-PARTE WHILST AFFIRMING THE IMPUGNED ADDITION MADE IN THE COURSE OF ASSESSMENT. HE HAS INDEED TAKEN INTO CONSIDERATION THE ASSESSEES EXPLANATION IN SUPPORT OF ITS SHARE APPLICATION/PREMIUM. 3. WE PROCEED FURTHER TO NOTICE THAT THE FACTUAL POSITION OF THE ISSUE INVOLVED HEREIN IS NO DIFFERENT IN THE ASSESSMENT ORDER DATED 30.03.2015 AS WELL. THERE IS NO DISPUTE ABOUT THE ASSESSEE TO HAVE RECEIVED ITS SHARE APPLICATION/PREMIUM OF RS. 96,30,000/- FROM FIVE PARTIES NAMELY M/S. CARBON EDGE COMMERCIAL PVT. LTD., M/S. SANMATI COMMODITIES PVT. LTD., M/S. AXION TIE UP PVT. LTD., M/S. SHIVAM ITA NO. 697/KOL/2018 [ASSESSMENT YEAR: 2012-13] M/S. CARBON EDGE INDUSTRIES LIMITED PAGE | 2 SECURITIES PVT. LTD., M/S. KINETIC SECURITIES LTD. THE ASSESSING OFFICER OBSERVED IN HIS ASSESSMENT ORDER THAT THE ASSESSEES AUTHORIZED PERSON/DIRECTOR DID NOT PRESENT ALONG WITH THE INVESTOR PARTIES IN RESPONSE TO SECTION 131 PROCESS. LD. DR VEHEMENTLY CONTENDS BEFORE US THAT THE BOTH THE LEARNED LOWER AUTHORITIES HAVE RIGHTLY INVOKED SECTION 68 OF THE ACT. HE FAILS TO REVERT THE CRUCIAL FACT THAT THE ASSESSEE HAD NOT ONLY FILED ALL THE RELEVANT DETAILS/DOCUMENTARY EVIDENCE RELATING TO ITS INVESTOR PARTIES IN THE NATURE OF FINANCIAL STATEMENTS, INCOME TAX ACKNOWLEDGEMENTS AND BANK STATEMENTS BUT ALSO MADE IT CLEAR THAT ONE OF THE INVESTOR PARTY M/S. CARBON EDGE COMMERCIAL PVT. LTD. WAS AN ASSOCIATE CONCERN HAS COMMON DIRECTORS. ALL THIS SUFFICIENTLY INDICATE THAT THE ASSESSING OFFICERS ASSESSMENT ORDER HAS NOWHERE CONSIDERED ALL THESE MATERIAL FACTS BEFORE MAKING THE IMPUGNED ADDITION. WE THEREFORE DEEM IT APPROPRIATE THAT THE LD. ASSESSING OFFICER NEEDS TO BE RE-EXAMINED THE ENTIRE ISSUE AFRESH AFTER AFFORDING THREE OPPORTUNITIES OF HEARING TO THE ASSESSEE. WE ORDER ACCORDINGLY. NECESSARY CONSEQUENTIAL PROCEEDINGS TO FOLLOW AS PER LAW. 4. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 07.08.2019. SD/- SD/- (A.L. SAINI) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE:- 07.08.2019 BIDHAN COPY FORWARDED TO: 1. APPELLANT- M/S. CARBON EDGE INDUSTRIES LIMITED, 238A, AJC BOSE ROAD, BHAWANIPUR, ROOM NO. 1A, 1ST FLOOR, KOLKATA- 700020. 2. RESPONDENT- ITO, WARD- 12(3), KOLKATA. 3. CIT-KOLKATA 4. CIT(APPEALS)-4, KOLKATA (SENT THROUGH MAIL) 5. DR: ITAT-KOLKATA BENCHES (SENT THROUGH MAIL) AR/H.O.O ITAT, KOLKATA