Sukamna Realtors Pvt. Ltd., Kolkata V. ITO, Ward 2(1), Kolkata, Kolkata

ITA 734/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5848 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 13-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MD USMAN
• Keywords: Unexplained cash credit; Non compliance
• Section: 143(3); 68

Judgement Text

, B , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI, M. BALAGANESH, ACCOUNTANT MEMBER ITA NO. 734 / KOL / 20 17 ASSESSMENT YEAR :2012-13 SUKAMNA REALTORS PVT. LTD.7/1A, GRANT LANE, 2 ND FLOOR, KOLKATA-12 [ PAN NO.AARCS 1045 H ] V/S . INCOME TAX OFFICER, WARD-2(1), AAYAKAR BHAWAN, KOLKATA-69 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI SIDDHARTH AGARWAL, ADVOCATE /BY RESPONDENT MD. USMAN, CIT-DR /DATE OF HEARING 28-06-2018 /DATE OF PRONOUNCEMENT 20-07-2018 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 CALLS INTO QUESTION OF COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKATA S ORDER DATED 03.10.2016, PASSED IN CASE NO.1410/CIT(A)-1/W-2(1)/ 2015-16 EX PARTE UPHOLDING ASSESSING OFFICERS ACTION MAKING SECTION U/S 68 ADDITION OF UNEXPLAINED CASH CREDIT AMOUNTING TO 12,11,25,000/- ON ACCOUNT OF SHARE CAPITAL AND SHARE PREMIUM AS WELL AS PRELIMINARY EX PENDITURE WRITTEN OFF DISALLOWANCE OF 7,669/-, INVOLVING PROCEEDINGS U/S 143(3) OF THE IN COME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT THE ASSESSING OFFIC ER HAD FRAMED REGULAR ASSESSMENT IN QUESTION ON 10.03.2015 MAKING THE ABO VE TWO ADDITION(S) OF SHARE APPLICATION / SHARE PREMIUM AND PRELIMINARY E XPENDITURE WRITTEN OFF IN ASSESSMENT ORDER DATED 10.03.2015. HE MADE THE FORM ER ADDITION ON ACCOUNT ITA NO.734/KOL/2017 A.Y. 201 2-13 SUKAMNA REALTORS PVT. LTD. VS. ITO WD-2 (1) KOL. PAGE 2 OF NON COMPLIANCE ON THE PART OF THE CORRESPONDING INVESTORS, THEIR IDENTITY, GENUINENESS AND CREDITWORTHINESS VIS--VIS THE RELE VANT SHARE APPLICATION AND PREMIUM ISSUED BY THE ASSESSEE WHICH COULD NOT BE V ERIFIED IN THE COURSE OF SCRUTINY. THE CIT(A) OBSERVES IN HIS APPELLATE PROC EEDINGS THAT THE ASSESSEE HAD NOT COME PRESENT ON I.E. 28.09.2016. HE THUS AS SUMES THAT THE ASSESSEE HAD NO JUSTIFIABLE EXPLANATION TO CHALLENGE CORRECT NESS OF THE ABOVE TWO ADDITION(S). 3. LEARNED COUNSEL REPRESENTING ASSESSEE HAS FILED ITS AUTHORIZED REPRESENTATIVES AFFIDAVIT DATED 22.05.2017 SOLEMNL Y AFFORDING THEREIN THAT HE COULD NOT APPEAR ON SAID LAST DATE OF HEARING IN TH E COURSE OF APPELLATE ASSESSMENT PROCEEDINGS ON 28.09.2016. IT IS THEREFO RE SUBMITTED THAT THE ASSESSEE HAD ALWAYS BEEN READY AND WILLING TO RENDE R NECESSARY ASSISTANCE TO LOWER AUTHORITIES AND IT WAS ONLY ON ACCOUNT OF ITS SINGLE FAILURE THAT THE CIT(A) HAS AFFIRMED BOTH THE ADDITION(S) ON MERITS. LEARNED DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTS BUT CIT(A)S FINDI NGS UPHOLDING THE IMPUGNED ADDITIONS. THE FACT HOWEVER REMAINS THAT T HE ASSESSEES BEFORE US ATTRIBUTES ITS FAILURE IN PUTTING IN APPEARANCE BEF ORE CIT(A) TO THE FACT THAT ITS AUTHORIZED REPRESENTATIVE HAD FALLEN ILL. WE THEREF ORE DEEM IT APPROPRIATE IN THE LARGER INTEREST OF JUSTICE TO REMIT THE INSTANT LIS BACK TO THE CIT(A) FOR AFRESH ADJUDICATION AFTER AFFORDING THREE EFFECTIVE OPPORT UNITIES OF HEARING. IT IS MADE CLEAR THAT OUR INSTANT REMAND DIRECTIONS WOULD STAN D VACATED IN CASE THE ASSESSEES FAILS TO CONCLUDE ITS HEARINGS WITHIN TH E SAID SPECIFIED NUMBER OF EFFECTIVE OPPORTUNITIES. 4. THIS ASSESSEES APPEAL IS ACCEPTED FOR STATISTIC AL PURPOSE IN THE ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT 20/0 7/2018 SD/- SD/- ( %) (' %) (M.BALAGANESH) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP, SR.P.S (- 20 / 07 /201 8 ITA NO.734/KOL/2017 A.Y. 201 2-13 SUKAMNA REALTORS PVT. LTD. VS. ITO WD-2 (1) KOL. PAGE 3 / COPY OF ORDER FORWARDED TO:- 1 . /APPELLANT-SUKAMNA REALTORS PVT. LTD., 7/1A, GRANT LANE, 2 ND FL, KOLKATA-12 2 . /RESPONDENT-ITO WARD-2(1), AAYAKAR BHAWAN, KOLKATA- 69 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5 . 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO 3,