ROSEMERRY VINIMAY PVT LTD,RAIPUR V. ITO, WARD 11(1), KOLKATA

ITA 36/KOL/2024

AI Insights

The case involves Rosemerry Vinimay Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the assessment year 2011-12. The appeal was directed against an assessment order passed under sections 144 and 147 of the Income-tax Act, 1961, which added an unexplained cash credit of \\u20b96,49,39,000 to the assessee's income. The addition was based on information from a search operation indicating the assessee was a beneficiary of accommodation entries. The assessee contended that they were not given a fair opportunity to present their case before the CIT (A), leading to the appeal for restoration of the matter to the CIT (A) for a comprehensive adjudication.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472482 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 14-08-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 04-01-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Opportunity of being heard; Additional evidence; Reasonable cause; Unexplained cash credit
• Section: 147; 148; 144; 142(1); 143(1); 132; 139(1); 68

Judgement Text

" आयकर अपीलीय अिधकरण Ɋायपीठ, कोलकाता । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & DR. MANISH BORAD, ACCOUNTANT MEMBER I.T.A. No. 36/KOL/2024 Assessment Year: 2011-12 RosemerryVinimay Pvt. Ltd. Flat No. 303, 3rd Floor, Jeevan Apartments, Rajiv Nagar, Chattisgarh-492001 PAN No. AADCR2184A Vs ITO, Wad 11(1), Aaykar Bhavan, P-7, Chowringhee Square, Kolkata-700069 अपीलाथŎ/ (Appellant) Ůत् यथŎ/ (Respondent) Assessee by : Shri Miraj D. Shah, AR Revenue by : Shri Rajat Mitra, CIT DR सुनवाई की तारीख/Date of Hearing : 14.08.2024 घोषणा की तारीख/Date of Pronouncement : 04.10.2024 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER: The captioned appeal filed by the assessee for A.Y. 2011-12, is directed against the order passed by the National Faceless Appeal Centre, Delhi (hereinafter referred to as the ‘ld. CIT(A)’) dated 7th November, 2023 which is arising out of the assessment order passed u/s 144 read with section 147 of the Income-tax Act, 1961 (the Act) dated 20th November, 2018. 2. At the outset, the ld. Counsel for the assessee submitted that the assessee did not get fair opportunity to appear before ld. CIT (A) and therefore, prayed that the matter may be restored to the file of the ld. CIT (A) for necessary adjudication of the issue raised in Page | 2 ITA No. 36/KOL/2024 Rosemerry Vinimay Pvt. Ltd.; A.Y. 2011-12 the grounds of appeal attached to form 36 and also prayed that permission may be granted to file additional evidence before ld. CIT (A) in support of his grounds. 3. On the other hand, though, the ld. DR supported the orders of the ld. lower authorities but did not oppose to the request of the assessee for restoring the matter to the file of the ld. CIT (A). 4. We have heard the rival contentions and perused the orders available on record. We find that the assessee is a private limited and is a investment company. Income of ₹5810 filed u/s 139(1) of the Act for A.Y. 2011-12, which was duly processed u/s 143(1) of the Act. Thereafter based on the information received on account of search carried out u/s 132 of the Act on 3rd January, 2018 in case of Super Sonic & Jhunjhunwala Group. The assessee alleged to be beneficiary of accommodation entry amounting to ₹6,49,39,000/-. Based on this information notice u/s 148 of the Act was issued followed by validly serving the other statutory notices. However, even after repeated directions assessee failed to furnish any document/ information to ld. AO, in response to the information called in the questionnaire attached to the notice u/s 142(1) of the Act. The ld. AO thus framed best judgement assessment u/s 144 of the Act making the addition for unexplained cash credit u/s 68 of the Act and income assessed at ₹6,49,39,000/-. 5. Further, when the matter travelled before the ld. CIT (A), the assessee after filing the appeal failed to appear on the date of hearing fixed by ld. CIT (A) on 9th February, 2021, 25th April, 2023, 11th September, 2023, 9th October, 2023 and 19th October 2023. The ld. CIT (A) was thus, left with no option except to confirm the order of the ld. AO because no details were filed by the assessee before the ld. AO as well as before ld. CIT (A) and thus, the ld. CIT Page | 3 ITA No. 36/KOL/2024 Rosemerry Vinimay Pvt. Ltd.; A.Y. 2011-12 (A) confirmed the impugned addition observing that the assessee has not explained the source of cash credit of ₹6,49,39,000/-. Before us, the ld. Counsel for the assessee has humbly prayed that for unavoidable reasons the assessee /ld. Authorized Representative could not appear on the dates of hearing and in the interest of justice requested for providing one more opportunity to go before the ld. CIT (A). 6. We on considering the facts and also taking a liberal view find it justified to restore all the issues raised in the instant appeal to the file of the ld. CIT (A) for necessary adjudication for which assessee will be at liberty to file all additional evidences and other submissions if deemed appropriate so that the ld. CIT (A) can frame a speaking order on the issue raised in the instant appeal. Needless, to mention that proper opportunity of being heard to be provided to the assessee and that the assessee should not seek any adjournments unless otherwise required for reasonable cause. Grounds of appeal raised by assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 04th October, 2024 at Kolkata. Sd/SdSd/- Sd/- Sd/-(SANJAY GARG) Sd/-(DR. MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 04th OCTOBER, 2024 *SS, Sr.Ps Page | 4 ITA No. 36/KOL/2024 Rosemerry Vinimay Pvt. Ltd.; A.Y. 2011-12 आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent 3. संबंिधत आयकर आयुƅ / Concerned Pr. CIT 4. आयकर आयुƅ ) अपील ( / The CIT(A)- 5. िवभागीय Ůितिनिध , आयकर अपीलीय अिधकरण , कोलकाता/DR,ITAT, Kolkata, 6. गाडŊ फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata "