M/s. Vedik Vintrade Pvt. Ltd., , Kolkata V. ITO, Ward - 9(2), Kolkata , Kolkata

ITA 951/KOL/2018

AI Insights

M/s. Vedik Vintrade Pvt. Limited appealed against the order of the Commissioner of Income Tax (Appeals)-18, Kolkata, which confirmed the additions made by the Assessing Officer for the assessment year 2012-2013. The primary issues in the appeal were the addition of Rs.40,51,00,000 as bogus share capital and Rs.10,070 under section 14A read with Rule 8D for alleged non-genuine expenses related to investments. The Tribunal noted the non-appearance of the assessee at various stages and the lack of any documentary evidence to support the claims made in the appeal. Consequently, the Tribunal dismissed the appeal, agreeing with the lower authorities' findings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129173 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 08-05-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Rule 8D
• Section: 68; 14A; 143(2)

Judgement Text

ITA No. 951/KOL/2018 Assessment Year : 2012-2013 M/s. Vedik Vintrade Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President & Shri Rajesh Kumar, Accountant Member I.T.A. No. 951/KOL/2018 Assessment Year: 2012-2013 M/s. Vedik Vintrade Pvt. Limited,............Appellant 123, Cotton Street, Kolkata-700007 [PAN: AADCV7284R] -Vs.- Income Tax Officer,................................Respondent Ward-9(2), Kolkata, 54/1, Rafi Ahmed Kidwai Road, Kolkata-700016 Appearances by: N o n e, appeared on behalf of the assesseee Shri Rakesh Kumar Das, CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing : May 01, 2023 Date of pronouncing the order : May 04, 2023 O R D E R Per Shri Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals)-18, Kolkata dated 26 th February, 2018 passed for assessment year 2012-13. ITA No. 951/KOL/2018 Assessment Year : 2012-2013 M/s. Vedik Vintrade Pvt. Limited 2 2. The assessee has raised five grounds of appeal. However, its grievances revolve around two issues, namely- (a) ld. CIT(Appeals) has erred in confirming the addition of Rs.40,51,00,000/-, which was added by the ld. Assessing Officer with the aid of section 68 on account of bogus share capital including premium raised by the assessee. (b) The ld. CIT(Appeals) has erred in confirming the addition of Rs.10,070/-, which was added by the ld. Assessing Officer with the aid of section 14A read with Rule 8D. 3. We have issued notices through Registered Post, but the notices returned back to the Tribunal with a Postal remark that the recipient is not located on the given address. Therefore, under the compelling circumstances, we have taken up proceeding against the assessee ex- parte. 4. Brief facts of the case are that the assessee has filed its return of income on 11.03.2013 declaring ‘NIL’ income. Its case was selected for scrutiny assessment ITA No. 951/KOL/2018 Assessment Year : 2012-2013 M/s. Vedik Vintrade Pvt. Limited 3 and a notice under section 143(2) was issued and served upon the assessee. The ld. Assessing Officer did not discuss much about the factual details, but he observed that assessee-company had raised fresh paid-up share capital of Rs.40,51,00,000/- including share premium by issue of fresh shares during the accounting year relevant to this assessment year. The ld. Assessing Officer thereafter observed that as per section 68 of the Income Tax Act, the assessee is required to fulfil three conditions, namely identity of the share applicants, their creditworthiness and genuineness of the transaction. The ld. Assessing Officer has issued summons under section 131 of the Income Tax Act to the Directors of the assessee-company for personal attendance, but no one appeared. Similarly, the assessee did not submit a single document in support of its case demonstrating the identity and creditworthiness of the share applicants. It has also not demonstrated how this transaction is a genuine one. Accordingly, ld. Assessing Officer has made an addition of Rs.40,51,00,000/-. 5. In appeal, assessee did not appear before the ld. CIT(Appeals). The ld. CIT(Appeals) has passed a very brief order. She just reproduced the grounds of appeal and thereafter concurred with the conclusions of the ld. Assessing Officer. ITA No. 951/KOL/2018 Assessment Year : 2012-2013 M/s. Vedik Vintrade Pvt. Limited 4 6. With the assistance of ld. CIT(DR), we have gone through the record carefully. In the absence of any details submitted by the assessee, it is very difficult to record any finding of fact. The ld. Assessing Officer has noticed that assessee has raised share capital including share premium during this year, but did not submit any detail in support of such receipt of the money. The assessee did not prosecute its appeal before the ld. 1 st Appellate Authority as well as the 2 nd Appellate Authority. Thus after going through the assessment order, we do not find any error in it. The findings of the ld. Assessing Officer are confirmed. We do not see any reason to interfere in the order of the ld. CIT(Appeals), though not well speaking order but in the absence of details, ld. CIT(Appeals) could not record any other finding. Accordingly, the appeal of the assessee is dismissed. 7. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on May 4 th , 2023. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the 4 th day of May, 2023 Copies to : (1) M/s. Vedik Vintrade Pvt. Limited, 123, Cotton Street, Kolkata-700007 ITA No. 951/KOL/2018 Assessment Year : 2012-2013 M/s. Vedik Vintrade Pvt. Limited 5 (2) Income Tax Officer, Ward-9(2), Kolkata, 54/1, Rafi Ahmed Kidwai Road, Kolkata-700016 (3) Commissioner of Income Tax (Appeals)-18, Kolkata; (4) Commissioner of Income Tax , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.