REMIX SUPPLIERS PVT LTD,KOLKATA V. WORD-2(1) KOLKATA, KOLKATA

ITA 510/KOL/2024

AI Insights

The case involves Remix Suppliers Pvt. Ltd., which appealed against the orders of the Income Tax Officer (ITO) and the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre (NFAC), Delhi. The primary contention was regarding the disallowance of Rs. 35,20,00,000 related to an increase in share capital, Rs. 10,82,500 concerning sundry creditors, and Rs. 1,71,407 related to expenses incurred. Both the AO and the CIT(A) had passed their orders ex parte due to the non-appearance of the assessee, leading to the present appeal. The Tribunal, considering the principles of substantive justice, decided to remand the case back to the AO, instructing a fresh assessment while referencing relevant case laws for guidance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361015 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2012-2013
• Other Referred Cases: BST Infratech Ltd. vs. 468 ITR 111 (Cal), Balgopal Merchants vs. 468 ITR 136 (Cal)
• Laws Referred To: Income Tax Act, 1961, Companies Act, 1956
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 510/Kol/2024 (Assessment Year 2012-13) Remix Suppliers Pvt. Ltd., 3rd Floor, Room No. 305, 69, Metcalfe Street, Bowbazar, Kolkata - 700013 [PAN: AADCR8135M] ..............…...…………….... Appellant vs. Income Tax Officer Ward-2(1), Kolkata, Aayakar Bhawan, Chowringhee, Kolkata ..…................................. Respondent Appearances by: Assessee represented by : Ramawatar Dhoot, AR Department represented by : Praveen Kishore, CIT(DR) Date of concluding the hearing : 14.05.2025 Date of pronouncing the order : 21.05.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. The present appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereinafter “the Act”), passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)”] vide order dated 03.01.2024 for AY 2012-13. 1.1 In this case, the Ld.AO is seen to have initiated enquiries regarding the share premium charged on shares of face value of Rs 3,52,000/- on which a premium of Rs. 35,16,48,000/- have been charged by the assessee. Apart from this, sundry creditors of Rs. 10,82,500/- and some expenses have also been added by the Ld. AO. It is recorded in the Ld. AO’s order that the assessee did not comply with any of the notices served from his 2 ITA No. 510/Kol/2024 Remix Suppliers Pvt. Ltd. office, fixing the dates for hearing and presentation of documents and evidences. 1.2 The assessee carried this matter in appeal where also it is recorded in para 3 at page 2 of the impugned order that several notices issued from the office of Ld. CIT(A) were not responded to by the assessee. Thereafter, the Ld. CIT(A) affirmed the action of Ld. AO. It is noteworthy that the assessee has not appeared before any of the authorities below till now. 1.3 However, the assessee has been further aggrieved with the action of Ld. CIT(A) and has filed the present appeal with the following grounds: “1. The Leamed AO has wrongfully disallowed Rs. 35,20,00,000/-relating to increase in share capital of the assessee company. The same was received by the company on account of increase in share capital for which all the relevant procedure was taken fulfilled and Form 2 under companies Act, 1956 was also filed with the Registrar of Companies. Hence the contention of the Learned AO cannot be justified in adding the same. 2. The Learned AO has disallowed Rs 10,82,500/- on account of sundry creditors of the company: The amount shown as creditors in the books of the assessee company was in relation to the ordinary business of the company Hence the same should not be disallowed by the Learned AO. 3. The Learned AO has disallowed Rs. 1,71,407/-on account of expenses incurred by the assessee company. The amount incurred as expenses by the company was done in relation to the ordinary course of business of the company. Hence the same should not be disallowed by the Learned AO. 4. That the appellant craves leave, to add, alter, amend, amplify or modify any or all of the above grounds of appeal or before the time of hearing of the appeal.” 2. Before us, the Ld. AR pointed out that both of the orders were passed in an exparte manner and hence the assessee was denied an opportunity to present the necessary documents and evidences before the Ld. AO/CIT(A). The Ld. AR mentioned that since the assessee was finding it difficult to collect the necessary documents hence, they asked for adjournment before the Ld. CIT(A), but the exparte order was passed nevertheless. The Ld. AR pleaded for another chance to present the documents and evidences before the authorities below. 2.1 The Ld. DR, on the other hand, relied on the orders of authorities below and stated that no worthwhile purpose would be served by sending 3 ITA No. 510/Kol/2024 Remix Suppliers Pvt. Ltd. this matter back since the assessee is stated to be facing difficulty in collecting the necessary evidences. 3. We have perused the documents before us and also heard the submissions. It is clear that in the interest of substantive justice, the assessee deserves a chance to present the evidences and facts before the Ld. AO so that his correct income can be determined. However, we are also conscious of the fact that the Hon’ble jurisdictional High Court has passed two orders which should guide the Ld. AO in completing the assessment in this case. Thus, the Ld. AO must refer to the case of BST Infratech Ltd. reported in 468 ITR 111 (Cal) and Balgopal Merchants reported in in 468 ITR 136 (Cal). The Ld. AO would need to be guided by these case laws in conducing enquiries and the assessee would be expected to cooperate in such enquiries. With these remarks, the impugned order is set aside and the matter is remanded to the file of Ld. AO for fresh assessment. 4. In result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 21.05.2025 Sd/- Sd/- (Pradip Kumar Choubey) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 21.05.2025 AK, Sr. P.S. 4 ITA No. 510/Kol/2024 Remix Suppliers Pvt. Ltd. Copy of the order forwarded to: 1. Remix Suppliers Pvt. Ltd. 2. Income Tax Officer, Ward-2(1), Kolkata 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "