LOCODEL SOLUTIONS PVT. LTD.,BIHAR V. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-1 (1), BIHAR

ITA 591/PAT/2024

AI Insights

Locodel Solutions Pvt. Ltd. appealed against the order of the National Faceless Appeal Centre, Delhi, which had dismissed their appeal on both legal and merit grounds regarding the assessment year 2015-16. The primary contention was the ex-parte assessment made by the AO under section 143(3) of the Income Tax Act, which included a substantial addition of share premium amounting to \\u20b965,37,82,190. The case was selected for scrutiny due to large share premium receipts, significant international transactions, and discrepancies in sales reported in the audit report. The ITAT noted that the evidences regarding the share premium received from non-resident Indians and Indian subscribers were not adequately examined by the AO or the CIT(A). Consequently, the ITAT restored the case to the AO for a comprehensive re-evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 24506 (ITAT-PATNA)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 16-09-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KR. SHUKLA
• Assessee Lawyers: DEEPESH JAIN
• Keywords: Set aside; Additional evidence; Transfer pricing; International transaction
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA (Through Virtual hearing at Kolkata) BEFORE SHRI DUVVURU RL REDDY, VP AND SHRI RAJESH KUMAR, AM ITA No.591/PAT/2024 (Assessment Year:2015-16) Locodel Solutions Pvt. Ltd. In front of UCO bank, Zero Mile, Bhagalpur-813210, Bihar Vs. Asst. Commissioner of Income Tax, Circle-1, ACIT, Circle 1(1), 3rd Floor, R.N. Plaza, R.B.S.S. Sahay Road, Bhagalpur, Bihar (Appellant) (Respondent) PAN No. AACCL5386K Assessee by : Shri Deepesh Jain, AR Revenue by : Shri Ajay Kr. Shukla, DR Date of hearing: 13.11.2024 Date of pronouncement : 27.11.2024 O R D E R PER RAJESH KUMAR, AM: This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 26/08/2024 for the AY 2015-16. 02. The assessee has filed various grounds of appeal before the Tribunal, challenging the order of ld. CIT (A) as legal issue as well as on merit. 03. At the outset, we find that the assessment has been framed ex-parte by the ld. AO u/s 143(3) of the Act vide order dated 13.12.2017. When the assessee failed to appear on the given dates of hearing, the Page | 2 ITA No.591/Pat/2024 Locodel Solutions Pvt. Ltd; A.Y. 2015-16 ld. AO framed the assessment based on the material available on record by making an addition of share premium of ₹65,37,82,190/-. It is pertinent to note that the case of the assessee was selected for scrutiny for large share premium received during the year, large international transactions, mismatch in sales reported in audit report. 04. In the appellate proceedings, the assessee filed the evidences before the first appellate authority under Rule 46A(1), which were remanded to the file of the ld. AO and a very cryptic remand report has been made by the ld. AO and the copy of which is placed at Paper Book pages 163 to 164. The ld. CIT (A) without commenting on any of these additional evidences, dismissed the appeal of the assessee on the legal as well as on merit. 05. Aggrieved assessee is in appeal before us. After hearing the rival contentions and perusing the materials available on record. We find that though the assessment was made u/s 143(3) of the Act vide order dated 13.12.2017, but as a matter of fact, the assessee did not file any evidences before the ld. AO and the assessment was framed as best judgement assessment based on the material available on record by making addition of ₹65,37,82,190/-. We further observe that even in the remand proceedings, the ld. AO has not gone into the issue of large share premium received by the assessee from non- resident Indian as well as Indian subscribers. We note that the share premium to the tune of ₹64,87,78,500/-, was received from non- resident, whereas the remaining amount of ₹59,39,133/- was stated to be received from resident subscribers. According to the assessee, the provisions of section 56(2)(viib) of the Act are not appliable to the share premium received from non-resident. In our opinion, the issues Page | 3 ITA No.591/Pat/2024 Locodel Solutions Pvt. Ltd; A.Y. 2015-16 have not been examined either by ld. CIT (A) or AO and the evidences filed by the assessee were not examined thoroughly. Therefore, we consider it fit and proper that in the interest of justice and fair play, the case of the assessee is restored to the file of the ld. AO for fresh adjudication after taking into consideration of these issues on facts law as well as on merit. Accordingly, we restore the appeal to the file of the ld. AO and at the same time we grant liberty to furnish all the evidences before the ld. AO in the set aside assessment proceedings. We would be pertinent to state that though the remand report was obtained by the ld. CIT (A) from the AO and the AO has furnished the remand report dated 14.02.2024 a copy of which is available at page no. 163 and 164 of the Paper Book, a perusal of the remand report states that the ld. AO has not all examined the evidences which persuaded us to restore the issue to the file of the ld. AO. Accordingly, the appeal of the assessee is allowed for statistical purpose. 06. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 27.11.2024. Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Kolkata, Dated: 27.11.2024 Sudip Sarkar, Sr.PS Page | 4 ITA No.591/Pat/2024 Locodel Solutions Pvt. Ltd; A.Y. 2015-16 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Patna "