I.T.O.,Ward-1(2), Kolkata V. M/s Lifewood Infotech Pvt. Ltd., Kolkata

ITA 784/KOL/2019

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8931 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-11-2022
• Assessment Year: 2012-2013
• Appeal Filed On: 11-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

ITA No. 784/KOL/2019 Assessment Year: 2012-2013 M/s. Lifewood Infotech Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.A. No. 784/KOL/2019 Assessment Year: 2012-2013 Income Tax Officer,....................................................................Appellant Ward-1(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 -Vs.- M/s. Lifewood Infotech Pvt. Limited, ......................................Respondent 7/1A, Grant Lane, Kolkata-700012 [PAN:AACCL2310D] Appearances by: Shri Amal Kamat, CIT (DR), appeared on behalf of the Revenue N o n e, appe are d o n behalf of the as ses see Date of concluding the hearing : November 03, 2022 Date of pronouncing the order : November 04, 2022 O R D E R Per Rajpal Yadav, Vice-President (KZ):- T h e R e v e n u e i s i n a p p e a l b e f o r e t h e T r i b u n a l a g a i n st t h e o r d e r o f l d . C o m m i s s i o n e r o f I n c o m e T a x ( A p p e a l s ) - 1 , K o l ka t a d a t e d 1 6 . 0 1 . 2 0 1 9 p a s s e d f o r A . Y . 2 0 1 2 - 1 3 . ITA No. 784/KOL/2019 Assessment Year: 2012-2013 M/s. Lifewood Infotech Pvt. Limited 2 2 . T h e R e v e n u e h a s t a k e n t h r e e g r o u n d s o f a p p e a l , ou t o f t h e m G r o u n d N o . 3 i s a g e n e r a l g r o u n d , w h i c h d o e s n o t c al l f o r r e c o r d i n g o f a n y s p e c i f i c f i n d i n g . 3 . G r o u n d s N o . 1 & 2 a r e i n t e r - c o n n e c t e d w i t h e a c h o t h e r . I n t h e s e g r o u n d s , g r i e v a n c e o f t h e R e v e n u e i s t h a t t h e l d . CI T ( A p p e a l s ) h a s e r r e d i n d e l e t i n g t h e a d d i t i o n o f R s . 9 , 9 1 , 0 0 , 0 0 0 / - , w h i c h w a s a d d e d b y t h e l d . A s s e s s i n g O f f i c e r w i t h t h e a i d o f s e c t i o n 68 . W e h a v e s e n t r e p e a t e d n o t i c e s t o t h e a s s e s s e e , b u t e v e r y t i m e t he n o t i c e s r e t u r n e d b a c k . T h e r e f o r e , w e p r o c e e d ex-parte qua t h e a s s e s s e e . 4 . B r i e f f a c t s o f t h e c a s e a r e t h a t t h e a s s e s s e e h as f i l e d i t s r e t u r n o f i n c o m e o n 2 5 . 0 8 . 2 0 1 2 d i s c l o s i n g t o t a l i n c o m e o f R s .4 7 4 / - . T h e c a s e w a s s e l e c t e d f o r s c r u t i n y a s s e s s m e n t a n d a n o t i c e un d e r s e c t i o n 1 4 3 ( 2 ) w a s i s s u e d a n d s e r v e d u p o n t h e a s s e s s e e . T h e l d . A s s e s s i n g O f f i c e r h a s p a s s e d a n a s s e s s m e n t o r d e r u n d e r s e c t i on 1 4 3 ( 3 ) a n d m a d e a n a d d i t i o n o f R s . 9 , 9 1 , 0 0 , 0 0 0 / - . I t i s a v e r y b r i e f a n d s k e t c h y a s s e s s m e n t o r d e r . W e d e e m i t a p p r o p r i a t e t o r e p r o d uc e t h e c o m p l e t e a s s e s s m e n t o r d e r , w h i c h r e a d s a s u n d e r : - ITA No. 784/KOL/2019 Assessment Year: 2012-2013 M/s. Lifewood Infotech Pvt. Limited 3 ITA No. 784/KOL/2019 Assessment Year: 2012-2013 M/s. Lifewood Infotech Pvt. Limited 4 5 . O n a p p e a l , l d . C I T ( A p p e a l s ) h a s d e l e t e d t h i s a d di t i o n . T h o u g h t h e i m p u g n e d o r d e r p a s s e d b y t h e l d . C I T ( A p p e a l s ) is r u n n i n g i n t o 1 1 p a g e s . B u t i n t h e s e 1 1 p a g e s , h e h a s r e p r o d u c e d t h e p a r t s o f t h e j u d g m e n t o f t h e H o n ’ b l e C a l c u t t a H i g h C o u r t i n t h e c a s e o f J a t i a ITA No. 784/KOL/2019 Assessment Year: 2012-2013 M/s. Lifewood Infotech Pvt. Limited 5 I n v e s t m e n t C o m p a n y – v s . - C I T r e p o r t e d i n 2 0 6 I T R 7 18 a n d t h e o r d e r o f I T A T i n I T A N o . 1 1 4 1 / K O L / 2 0 1 7 f r o m p a g e s n o . 4 to 1 1 . A p a r t f r o m t h i s r e p r o d u c t i o n o f t h e s e t w o o r d e r s h i s o w n d e v o ti o n t o t h e i s s u e i s o n l y i n t w o p a r a g r a p h s . I n P a r a g r a p h s n o . 2 t o 6 , he h a s b r i e f l y m e n t i o n e d t h e f a c t s a b o u t f i l i n g o f r e t u r n , i s s u a n ce o f n o t i c e u n d e r s e c t i o n 1 4 3 ( 2 ) a n d 1 4 2 ( 1 ) , g r o u n d s o f a p p e a l r a i s e d b y t h e a s s e s s e e a n d r e p r o d u c t i o n o f s e c t i o n 6 8 o f t h e I n c o m e T a x A ct . T h e r e a f t e r h i s f i n d i n g s t a r t s f r o m p a r a g r a p h s n o . 7 a n d 1 3 . I n b e t we e n , h e h a s r e p r o d u c e d t h e j u d g m e n t o f t h e H o n ’ b l e C a l c u t t a H i gh C o u r t a n d t h e o r d e r o f I T A T . T h e r e l e v a n t p a r a g r a p h s n o . 7 & 1 3 ar e r e p r o d u c e d h e r e u n d e r : - “7. In other words, no amount has been credited to the books of accounts of the assessee for purchase of shares. It was adjusted against investments made. In other words, the share application was separate. Investment which had been made had been adjusted. The share capital was not issued on receipt of any cash. Shares were issued for consideration other than cash in lieu of assessee-company making investment any shares in some other company”. “13. Therefore, going by the decision of the Hon’ble Tribunal the Calcutta High Court, Madras High Court as well as the facts of the case since there was no infusion of cash for purchase of shares and that sum cannot be held as being credited to the account of the assessee, no addition can be made u/s 68 of the Income Tax Act, 1961. In view of the above, addition made in Grounds of Appeal No. 1 to 3 are deleted”. 6 . W e h a v e g o n e t h r o u g h b o t h t h e o r d e r s , b u t u n a b l e t o a p p r e c i a t e w h a t i s t h e n a t u r e o f t r a n s a c t i o n a n d w h a t a r e t h e f a c t s o n t h e r e c o r d . I t a p p e a r s t h a t l d . C I T ( A p p e a l s ) h a s d e l e t e d t h e a dd i t i o n b y o b s e r v i n g t h a t t h e a s s e s s e e h a s n o t r e c e i v e d c a s h o n a c c o u n t o f s h a r e a p p l i c a t i o n ITA No. 784/KOL/2019 Assessment Year: 2012-2013 M/s. Lifewood Infotech Pvt. Limited 6 m o n e y , r a t h e r i t h a s a d j u s t e d t h e s e s a l e o f s h a r e s a g a i n s t s o m e i n v e s t m e n t s m a d e e a r l i e r . I t i s n o t s p e c i f i c a l l y d is c e r n a b l e w h a t w a s t h e i n v e s t m e n t , w h i c h i s t h e i n v e s t o r c o m p a n y w h e n i n v e s t m e n t w a s m a d e e t c . I t i s a l s o p e r t i n e n t t o o b s e r v e t h a t t h e l d . A s s e s s i n g O f f i c e r w a s a l s o r e q u i r e d t o v e r i f y t h e n a t u r e o f i n v e s t m e nt , t h e n a t u r e o f c h a r a c t e r o f t h e c o m p a n y , w h o a l l o w e d t o h a v e m a d e i n v e s t m e n t . B e f o r e u s , i t a p p e a r s t h a t t h e a s s e s s e e - c o m p a n y i s a p a p e r c o m p a n y . N o b o d y h a s t a k e n t h e l i t i g a t i o n s e r i o u s l y , i . e . t h e l d . A s s e s s i n g O f f i c e r a s w e l l a s l d . C I T ( A p p e a l s ) . T h e l d . 1 s t A p p e l l a t e A u t h o r i t y h a s e r r e d i n a d j u s t i n g t h e f a c t s o f t h i s c a s e w i t h r a t i o o f l a w l a i d d o w n i n s o m e o t h e r j u d g e m e n t . T h e i m p u g n e d o r d e r s a r e n o t s u s t a in a b l e o n a c c o u n t o f n o n - s p e a k i n g o r d e r s . T h e r e f o r e , w e s e t a s i d e b o th t h e o r d e r s a n d r e s t o r e t h i s i s s u e t o t h e f i l e o f l d . A s s e s s i n g O f fi c e r f o r r e - a d j u d i c a t i o n . T h e l d . A s s e s s i n g O f f i c e r i s d i r e c t e d t o c o l l e c t c o m p l e t e f a c t s a n d d i s c u s s l u c i d l y i n t h e o r d e r r e q u i r e d t o b e p a s s e d b y h i m a f t e r t h i s r e s t o r a t i o n . 7. In the result, the appeal of the Revenue is treated as allowed for statistical purposes. O r d e r p r o n o u n c e d i n t h e o p e n C o u r t o n N o v e m b e r 0 4 , 2 0 2 2 . S d / - S d / - (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 4 th day of November, 2022 Copies to : (1) Income Tax Officer, Ward-1(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 ITA No. 784/KOL/2019 Assessment Year: 2012-2013 M/s. Lifewood Infotech Pvt. Limited 7 (2) M/s. Lifewood Infotech Pvt. Limited, 7/1A, Grant Lane, Kolkata-700012 (3 ) Commi ssione r of Income Tax (A ppe als) -1, Kolkat a; (4) Commis sione r of Inco me T ax- , Kolkata; (5) The De part ment al Re present ati ve (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.