M/s. Scorpio Tie Up Pvt. Ltd., , Kolkata V. ITO, Ward - 7(3), Kolkata , Kolkata

ITA 871/KOL/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5924 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 02-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR CIT SRDR
• Assessee Lawyers: MANOJ KATARUKA
• Keywords: Unexplained cash credit; Earning of tax free income
• Section: 143(3); 14A; 133(6); 68

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO.871/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S SCORPIO TIE UP PVT. LTD., 16, RAM SEVAK MULLICK LANE, KOLKATA-700007 [ PAN NO.AAMCS 7616 R ] / V/S . INCOME TAX OFFICER, WARD-7(3), P7, COWRINGHEE SQUARE, AAYAKR BHAWAN, KOLKAKTA-69 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI MANOJ KATARUKA, ADVOCATE /BY RESPONDENT SHRI SAURABH KUMAR, ADDL. CIT-SR-DR /DATE OF HEARING 03-07-2018 /DATE OF PRONOUNCEMENT 25-07-2018 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-18, KOLKATAS ORDER DATED 2 2.02.2018 PASSED IN CASE NO.1598/2015- 16/CIT(A)-18/WD-7(3)/F.SL. NO.2364/17-18/KOL EX PARTE UPHOLDING THE ASSESSING OFFICERS ACTION ADDING ITS SHARE APPLICATION/PREMIUM OF 1,26,00,000/- IS AS UNEXPLAINED CASH CREDITS U/S. 68 FOLLOWED BY SECTION 14A R.W. 8D RULE DISALL OWANCE OF 2,27,168/-, IN PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT EMERGES AT THE OUTSET THAT THE CIT(A)S LOWER APPELLATE ORDER UNDER CHALLENGE NOWHERE SPECIFIES POINTS OF HIS DETERMINATION FOLLO WED BY DETAILED REASONING AS ENVISAGED U/S. 250(6) OF THE ACT. THERE IS FURTHER NO OBSERVA TION IN HIS LOWER APPELLATE ORDER AS TO WHETHER ASSESSEE HAD BEEN SERVED NOTICE OF HEARING OR NOT. ITA NO.871/KOL/2018 A.Y. 2012-13 M/S SCORPIO TIE UP PVT. LTD. VS. ITO WD-7(3 ), KOL. PAGE 2 3. WE NOTICE THAT THE SITUATION IS NO DIFFERENT IN THE ASSESSMENT ORDER AS WELL. THE ASSESSING OFFICER APPEARS TO HAVE MADE THE ABOVE TW O ADDITIONS OF UNEXPLAINED SHARE APPLICATION/PREMIUM AS WELL AS DISALLOWANCE PERTAIN ING TO EXEMPT INCOME FROM DIVIDENDS. THE ASSESSMENT ORDER RUNNING INTO FOUR PAGES NOWHER E DISCUSSES THE ASSESSEES DETAILED EVIDENCE FORMING PART OF PAPER BOOK RUNNING INTO 12 8 PAGES MAINLY COMPRISING OF THE RELEVANT LIST OF INVESTORS ALONG WITH ALL RECORDS P ERTAINING TO ASSESSEE AS WELL AS THE SAID ENTITIES, THEIR ANNUAL RETURNS, BANK STATEMENTS, DE TAILS OF EQUITY SHARES, INVESTORS RESPONSE TO SEC. 133(6) NOTICES ETC. ALL THESE DOCUMENTS CONTAI N DUE CERTIFICATION AS PER RULES TO HAVE BEEN FILED BEFORE THE ASSESSING OFFICER AND IN THE LOWER APPELLATE PROCEEDINGS; AS THE CASE MAY BE. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS T O DISPUTE THE FACT THAT ALL THE SAID MATERIALS SEEK TO PROVE IDENTITY, GENUINENESS AND C REDITWORTHINESS OF ASSESSEES SHARE APPLICATION & PREMIUM. WE THEREFORE CONCLUDE THAT T HE ASSESSING OFFICER NEEDS TO RE-DECIDE BOTH THESE ISSUES AS PER LAW AFTER AFFORDING ADEQUA TE OPPORTUNITY OF HEARING TO THE ASSESSEE. THIS APPEAL IS ACCORDINGLY RESTORED BACK TO THE ASS ESSING OFFICER FOR A THROUGH ADJUDICATION AS PER LAW. WE MAKE IT CLEAR THAT THE ASSESSING AUT HORITY MAY ALSO CONDUCT INDEPENDENT ENQUIRIES AS WELL TO EXAMINE THE ABOVE MAIN ISSUE O F GENUINENESS AND CREDITWORTHINESS OF THE IMPUGNED SHARE APPLICATION / PREMIUM. 4. THIS ASSESSEES APPEAL IS ACCEPTED FOR STATISTIC AL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 25/07/2018 SD/- SD/- ( &) (( &) (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS ) - 25/07/2018 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S SCORPIO TIE UP PVT. LTD, 16, RAM SEV AK MULLICK LANE, KOLKATA-700007 2. /RESPONDENT-ITO WD-7(3), P-7, CHOWRINGHEE SQ. AAYAK AR BHAWAN, KOL-69 3. , - / CONCERNED CIT 4. - - / CIT (A) 5. . ((, , , /DR, ITAT, KOLKATA 6. 2 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO ,,