M/S. EMERALD PROPERTIES PVT. LTD. ,KOLKATA V. ITO, WARD- 13(2), KOLKATA, KOLKATA

ITA 1232/KOL/2024

AI Insights

M/s Emerald Properties Pvt. Ltd. appealed against the orders of the AO and CIT(A) concerning the assessment year 2012-13. The AO had added a substantial amount to the assessee's income under section 68 of the Income Tax Act, citing unexplained cash deposits and advances. The CIT(A) dismissed the appeal, noting the assessee's prior application under the VSVS Scheme, which was aimed at resolving a penalty issue, not the assessment order. The Tribunal found that the assessee had not been given a fair opportunity to present its case and directed a re-assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469683 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(2); 68; 131

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 1232/Kol/2024 Assessment Year: 2012-13 M/s Emerald Properties Pvt. Ltd. (PAN: AAACE 5407 E) Vs. ITO, Ward-13(2), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 11.12.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 23.01.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Miraj D Shah, A.R For the revenue / राजèव कȧ ओर से Shri Abhijit Kundu, CITDR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 08.09.2024for AY 2012-13. 2. Brief facts of the case of the assessee are that the assessee company filed his return of income declaring total income at Rs. 35,220/-. The case was selected for 2 I.T.A. No. 1232/Kol/2024 Assessment Year: 2012-13 M/s Emerald Properties Pvt. Ltd. scrutiny, notices u/s 143(2) was served. The assessee has also been show caused as there was non-compliance of the notice u/s 142(1), there was also non-compliance in attending the hearing instead of personal appearance as against the notices u/s 131 of the Act., the AO find that during the FY 2011-12 the assessee company made a cash deposit of Rs. 2,44,000/- and Rs. 2,00,000/- in Union Bank of India as the assessee did not come forward to produce the books of account and/or explaining the bank book such cash deposit remained unexplained. The AO further observed from the balance sheet and list of parties to whom advance was given credit to Rs. 57,23,000/- as on 31.03.2011 and got reduced to Rs. 34,73,000/- by way of repayment of advance received by the assessee company. The identity of parties, genuineness of transaction and creditworthiness of the party to pay the amount remained unexplained. The AO further find the new head current liabilities of the balance sheet. It is observed that the assessee has increased the advances from Rs. 25,00,000/- to Rs. 1,44,50,000/-. The assessee never appeared to produce the books of account, as a result of which, the amount of Rs. 1,19,50,000/- added back to the total income of the assessee u/s 68 of the Act. The AO has assessed the income of the assessee as follows: Being aggrieved and dissatisfied the assessee has preferred the appeal before the Ld. CIT(A). 3. The said order has been challenged by the assessee before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed by holding that the assessee opted for VSVS scheme vide application dated 31.03.2021. 3 I.T.A. No. 1232/Kol/2024 Assessment Year: 2012-13 M/s Emerald Properties Pvt. Ltd. 4. The Ld. Counsel of the assessee challenges the very impugned order, thereby submitting that the Ld. CIT(A) failed to appreciate that the assessee’s application under the VSVS Scheme vide declaration dated 31.03.2021 was in fact against the penalty order passed by the AO on 30.09.2015. The Ld. Counsel submits that there was no application filed by the assessee against the said order before the Ld. CIT(A). The Ld. Counsel further submits that the assessee could not be able to appear before the AO to substantiate his claim. He has filed papers in two sets in P.B1 and P.B 2, details of which are as follows: 4 I.T.A. No. 1232/Kol/2024 Assessment Year: 2012-13 M/s Emerald Properties Pvt. Ltd. 5. The Ld. D.R supports the impugned order. 6. On perusal of the order of AO there is no denying to this fact that it has been passed in absence of the assessee. The Ld. CIT(A) has also dismissed the appeal of the assessee by holding that the assessee opted for VSVS Scheme. The assessee has clearly stated that he filed application under VSVS Scheme against the penalty order not against the order passed by the AO on 29.03.2015. Before us, the assessee has filed bunch of papers and also given a certificate that the paper book submitted by the assessee contains the new documents which were not filed before the authorities below. In the interest of justice, we are inclined to give an opportunity to the assessee to place his case before the AO. Accordingly, the order was passed by the AO confirmed by the Ld. CIT(A) is hereby set aside. The assessee has been given an opportunity to place all these papers which he filed before us before the A.O. The AO is directed to pass a fresh order and after hearing the assessee and going over the documents. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 23rd January, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 23rd January, 2025 SM, Sr. PS 5 I.T.A. No. 1232/Kol/2024 Assessment Year: 2012-13 M/s Emerald Properties Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- M/s Emerald Properties Pvt. Ltd. (successor to Longview Finvest Pvt. Ltd.), 113, N. S. Road, Kolkata-700001 2. Respondent – ITO, Ward-13(2), Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "