Quantum Vinimay Pvt. Ltd., , Kolkata V. ITO, Ward - 4(4), Kolkata , Kolkata

ITSSA 41/KOL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9316 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 10-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 04-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K NAYAK
• Assessee Lawyers: P K SANGHAI
• Section: 143(2)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER IT(SS)A NO.41/KOL/2018 ASSESSMENT YEAR: 2010-11 QUATUM VINIMAY PVT. LTD. SANGHAI & ASSOCIATES, CHARTERED ACCOUNTANTS P-2, NEW CIT ROAD, KOLKATA-73 [ PAN NO.AAACQ 1291 J ] / V/S . INCOME TAX OFFICER, WARD-4(4), P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI P.K. SANGHAI, FCA /BY RESPONDENT SHRI A.K. NAYAK, CIT-DR /DATE OF HEARING 04-12-2019 /DATE OF PRONOUNCEMENT 10-01-2020 /O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-17, KOLKATAS ORDER DATED 16.11.2016 PASSED IN CASE NO.271/CIT(A)-17/KOL/15-16 INVOLVING PROCEE DINGS U/S 153C OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE(S) PERUSED. 2. THE ASSESSEES TWIN PLEADINGS CHALLENGE CORRECTN ESS OF BOTH THE LOWER AUTHORITIES ACTION INITIATING 153C PROCEEDINGS CUL MINATING IN ADDITION OF THE ALLEGED ON-MONEY PAYMENT OF 61 LAKH FOR PURCHASE OF IMMOVABLE PROPERTY IN QUEST ION. IT IT(SS)A NO.41/KOL/2018 ASSESSMENT YEA R 2010-11 QUANTUM VINIMAY PVT. LTD. VS ITO WD-4(4), KO L. PAGE 2 TRANSPIRES AT THE OUTSET THAT CIT(A)S ORDER UNDER CHALLENGE HAS BEEN PASSED EX PARTE . MR. NAYAK INVITED OUR ATTENTION TO CIT(A)S ORDER U NDER CHALLENGE IN PAGE 1 PARA-2 THAT HE HAD AFFORDED ADEQUATE OPPORTUNITIES OF HEAR ING TO THE ASSESSEE ON 09.03.2016, 31.05.2016, 15.07.2016, 21,10.2016 24.10.2016 & 11. 11.2016 AND THEREFORE, THE ASSESSING OFFICERS ACTION HAS RIGHTLY BEEN AFFIRME D IN LOWER APPELLATE DISCUSSION. WE FIND NO REASON TO EXPRESS OUR AGREEMENT WITH THE RE VENUES TECHNICAL ARGUMENTS FIRST OF ALL. THE FACTS REMAINS THAT THE ASSESSEES COUNS EL HAD APPEARED ON SECOND, THIRD AND FIFTH OCCASIONS BEFORE THE CIT(A) AND THERE IS NO I NDICATION THAT IT HAD BEEN ACTUALLY SERVED THE LAST HEARING NOTICE ON 11.11.2016. 3. COUPLED WITH THIS, THE ASSESSEE APPEARS TO HAVE RAISED THREE FOLDED SUBMISSIONS BEFORE THE CIT(A) CHALLENGING CORRECTNESS OF SEC. 1 53C PROCEEDINGS THAT THERE IS NO PROPER SATISFACTION RECORDED AS PER THE RELEVANT ST ATUTORY REQUIREMENTS, ASSESSMENT ORDER HAD BEEN PASSED WITHOUT JCITS APPROVAL AND S CRUTINY NOTICE U/S 143(2) NOTICE DATED 02.07.2012 WAS AN INVALID ONE; RESPECTIVELY. THE CIT(A) HAD FORWARDED THE ASSESSEES FOREGOING EVIDENCE TO THE ASSESSING OFFI CER FOR HIS COMMENTS. THE ASSESSING OFFICER FILED HIS LETTER DATED 07.04.2015 THAT THREE FOREGOING PLEAS DID NOT INVOLVE ANY MERIT ON FACTS. THE CIT(A) HAS THEREAFT ER ACCEPTED THE ASSESSING OFFICERS COMMENTS AND AFFIRMED HIS ACTION ON MERIT S MAKING ON-MONEY ADDITION OF 61 LAKH QUA ASSESSEES IMMOVABLE PROPERTY PURCHASED IN FARIDABAD. 4. LEARNED CIT-DR SUBMITTED THAT THE SEARCH IN QUES TION DATED 06.11.2011 CARRIED OUT IN CASE OF M/S SHIV VANI OIL & GAS EXPLORATION SERVICES LTD. HAD YIELDED INCRIMINATING EVIDENCE INDICATING THE ABOVE ON-MONE Y PAYMENT. THE SEARCHED ASSESSEES AUTHORIZED PERSON HAD ALSO MADE AN ALLEG ED STATEMENT TO THIS EFFECT. MR. NAYAKS CASE ACCORDINGLY IS THAT ALL THIS FORMED A SUFFICIENT REASON FOR THE ASSESSEES ASSESSING OFFICER TO INITIATE THE IMPUGNED SEC. 153 C PROCEEDINGS. 5. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL PLEADINGS AGAINST AND IN SUPPORT OF THE LEARNED LOWER AUTHORITIES ACTION IN ITIATING SEC. 153C PROCEEDINGS AS WELL AS MAKING ON-MONEY ADDITION OF 61 LAKHS. IT HAS ALREADY COME ON RECORD THAT IT(SS)A NO.41/KOL/2018 ASSESSMENT YEA R 2010-11 QUANTUM VINIMAY PVT. LTD. VS ITO WD-4(4), KO L. PAGE 3 NEITHER THERE IS ANY DISCUSSION QUA ACTUAL SERVICE OF NOTICE QUA THE LAST HEARING DATE ON11.11.2016 NOR THREE IS ANY MATERIAL ON RECORD WH ICH COULD SUGGEST THAT CIT(A) HAD AFFORDED THE ASSESSEE ANY OPPORTUNITY FOR FILING IT S OBJECTIONS TO THE ASSESSING OFFICERS REMAND REPORT DATED 07.04.2015. WE THEREF ORE DEEM IT APPROPRIATE TO RESTORE ALL THE ISSUES RAISED IN THE INSTANT APPEAL BACK TO THE CIT(A) FOR AFRESH ADJUDICATION ON LEGAL AS WELL AS FACTUAL ASPECTS AS PER LAW WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE CIT(A) ON OR BEFORE 30.06.2020 ALONGWITH A COPY OF THE INSTANT ORDER FOR FURTHER C ONSEQUENTIAL PROCEEDINGS. 6. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 10/01/2020 SD/- SD/- ( ') () ') (J.SUDHAKAR REDDY) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER *DKP-SR.PS * - 10/01/2020 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-QUANTUM VINIMAY PVT. LTD., SANGHAI & ASS OCIATES, CHARTERED ACCO UNTS P-2, NEW CIT ROAD,KOLKATA-700073 2. /RESPONDENT-ITO WD-4(4), P-7, CHOWRINGHEE SQ. KOLKA TA-69 3. - . / CONCERNED CIT 4. . - / CIT (A) 5. / ))- , - /DR, ITAT, KOLKATA 6. 3 / GUARD FILE. BY ORD ER/ , /TRUE COPY/ -,