SANTANU ROY, INCOME TAX OFFICR WARD 10(2), KOLKATA, KOLKATA V. BRUCK PHARMA PRIVATE LIMITED, MUMBAI

ITA 371/KOL/2025

AI Insights

The appeals by the revenue were against the orders passed by the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment years 2013-2014 and 2022-2023. The primary issues revolved around the additions made by the Assessing Officer regarding unsecured loans and share application money received by the assessee from M/s Bhuvneshwari Vyapaar Pvt. Ltd., which was alleged to be a shell company. The CIT(A) had deleted these additions, citing a violation of the principles of natural justice as the Assessing Officer relied solely on information from the Investigation Wing without providing the assessee a fair opportunity to contest these findings. The Tribunal agreed with the CIT(A)'s observation of procedural irregularity and remanded the matter back to the Assessing Officer for a thorough re-examination, ensuring that the assessee is given a fair chance to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652784 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P.N. BARNWAL
• Assessee Lawyers: PRIYAVRAT GUPTA
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER आयकर अपील सं/ITA Nos.371&372/KOL/2025 (निर्धारण वर्ा / Assessment Years :2013-2014 & 2022-2023) ITO, Ward-10(2), Kolkata Vs Bruck Pharma Private Limited 405, B-Wing, cello Triumph, Goregaon East, SO Mumbai PAN No. :AABCB 0548 E (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) रधजस्व की ओर से /Revenue by : Shri P.N.Barnwal, CIT-DR निर्धाररती की ओर से /Assessee by : Shri Priyavrat Gupta, AR सुनवाई की तारीख / Date of Hearing : 16/06/2025 घोषणा की तारीख/Date of Pronouncement : 16/06/2025 आदेश / O R D E R Per George Mathan, JM : These are the appeals filed by the revenue against the separate orders passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 21.01.2025, for the assessment years 2013-2014 & 2022- 2023. 2. Shri Priyavrat Gupta, AR appeared through online without uniform and consequently both the appeals of the are being are being disposed off without hearing the AR. 3. Shri P.N.Barnwal, CIT-DR appeared on behalf of the revenue. 4. A perusal of the assessment order in the case of the assessee for the assessment year 2013-2014, shows that the addition was made in respect of certain unsecured loans taken by the assessee from M/s Bhuvneshwari Vyapaar Pvt. Ltd. The transactions were in respect of Rs.1,25,00,000/- received as unsecured loan and Rs.45,00,000/- as share ITA No.372&372/Kol/2025 2 application money. The Assessing Officer did not accept the contention of the assessee on the ground that M/s Bhuvneshwari Vyapaar Pvt. Ltd. was a shell company existing only on paper. The ld. CIT(A), NFAC has deleted the addition by holding that the Assessing Officer has merely relied upon the information provided by Investigation Wing. The ld. CIT(A) has also mentioned that there is gross violation of principle of natural justice. When there is violation of principle of natural justice, it is an irregularity in the assessment proceedings and it is not an illegality in the assessment proceedings. This being so, the issue in respect of irregularity must be restored to the point of irregularity. In the present case, admittedly, the Assessing Officer has not provided the assessee adequate opportunities to substantiate its case. This being so, in the interest of justice, the issues in this appeal are restored to the file of Assessing Officer for readjudication after granting the assessee adequate opportunity of being heard. The assessee shall produce the directors of M/s Bhuvneshwari Vyapaar Pvt. Ltd. before the Assessing Officer for examination and to substantiate its claim of the short-term loan received and the share application money received. It is noticed that only paper documents have been produced before the Assessing Officer. It is also incumbent upon the assessee to produce the directors before the Assessing Officer for examination. If the Assessing Officer proposes to use any evidence against the assessee or which are detrimental to the assessee, the Assessing Officer shall also provide the assessee an opportunity to rebut the same and if the evidences in respect of any statements are being relied upon, the Assessing Officer ITA No.372&372/Kol/2025 3 shall provide such persons to the assessee for cross examination. With the above direction, ITA No.371/Kol/2025 is partly allowed for statistical purposes. 5. In respect of ITA No.372/Kol/2025, it is noticed that the issue is in regard to the valuation of shares adopted by the assessee. A perusal of the order of the ld. CIT(A) shows that the ld. CIT(A) has not pointed out any discrepancies made by the Assessing Officer in the assessment order. This being so, for the purpose of passing of a speaking order, the issues in this appeal are restored to the file of ld. CIT(A) for readjudication after granting the assessee adequate opportunity of being heard. This appeal of the revenue is partly allowed for statistical purposes. 6. In the result, both appeals of the revenue are partly allowed for statistical purposes. Order dictated and pronounced in the open court on 16/06/2025. Sd/- (RAKESH MISHRA) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 16/06/2025 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// "