PRESIDENCY MERCHANTS PRIVATE LIMITED,KOLKATA, WEST BENGAL V. OFFICE OF INCOME TAX OFFICER, KOLKATA, WEST BENGAL

ITA 2186/KOL/2024

AI Insights

This case involves an appeal by Presidency Merchants Pvt Ltd against an order passed by the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2009-2010. The primary issue in the appeal was related to the share application money, which was a consequence of an earlier order under section 263 of the Income Tax Act. The Assessing Officer had not followed the directions of the CIT, Kolkata-3, leading to the current appeal. The Tribunal noted the absence of evidence regarding the genuineness of the share applicants and directed a thorough re-examination of the matter by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314672 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P.N. BARNWAL
• Assessee Lawyers: SOUMITRA CHOUDHURY
• Keywords: Condonation of delay; Opportunity of being heard

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.2186/KOL/2024 (निर्धारण वर्ा / Assessment Year : 2009-2010) Presidency Merchants Pvt Ltd No.101, India Exchange Place Dalhousie, Writers Building, Kolkata Vs ITO Ward-9(3), Kolkata PAN No. :AAECP 6904 B (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Soumitra Choudhury, AR रधजस्व की ओर से /Revenue by : Shri P.N.Barnwal, CIT-DR सुनवाई की तारीख / Date of Hearing : 07/05/2025 घोषणा की तारीख/Date of Pronouncement : 07/05/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 15.03.2024, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1062704762(1), for the assessment year 2009-2010. 2. Shri Soumitra Choudhury, AR appeared on behalf of the assessee. Shri P.N.Barnwal, CIT-DR appeared on behalf of the revenue. 3. On perusal of the appeal record, we find that the appeal of the assessee delayed by 160 days. In this regard, the assessee has filed an application supported by an affidavit for condonation of delay stating therein sufficient and plausible reasons for delay and the reasons are not found to be false. Accordingly, the delay of 160 days in filing the present appeal by the assessee is hereby condoned and the appeal is disposed off accordingly. ITA No.2186/KOL/2024 2 4. It was submitted by the ld. AR that the issue on merits was with regard to share application money. It was the submission that the impugned assessment order was a consequence of an order passed u/s.263 of the Act. It was the submission that the order u/s.263 of the Act has not been challenged. It was the submission that the Assessing Officer has not followed the order of the ld. CIT, Kolkata-3 passed u/s.263 of the Act. It was the submission that he had no objection if the issues in the appeal are restored to the file of Assessing Officer for readjudication. 5. The assessee has also filed detailed paper book containing names of the various share applicants and their details. The paper book contains nearly 754 pages. A perusal of the paper book filed by the assessee shows that a lot of paper work in regard to various share applicants have been produced. There is no evidence of any of the directors of the share holding company having been produced before the AO. This being so, considering the submissions of the ld. CIT-DR that the genuineness has not been proved, the issues in this appeal are restored to the file of Assessing Officer for readjudication afresh. It must be mentioned here that the assessee has not represented before the ld. CIT(A). A liberty is granted to the assessee to produce all such evidence as required to substantiate its claim of share application money. The Assessing Officer may also issue notices u/s.131 of the Act to compel appearances of the directors/shareholders of the share companies. 6. Here it may also be mentioned that should the Assessing Officer give any evidence against the assessee, copy of the same shall be ITA No.2186/KOL/2024 3 provided to the assessee for his rebuttal. With the above directions, the issues in this appeal are restored to the file of the Assessing Officer for readjudication afresh. The assessee shall be afforded adequate opportunity of being heard. 7. In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 07/05/2025. Sd/- (SANJAY AWASTHI) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 07/05/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "