SHAKTIMAN BIO AGRO INDUSTRIES PVT. LTD.,YAMUNANAGAR V. PR. CIT, PANCHKULA

ITA 519/CHANDI/2019

AI Insights

The case involves two appeals by Shaktiman Cement & Packaging Industries Ltd. and Shaktiman Bio Agro Industries Private Ltd. against the orders of the Commissioner of Income Tax, Panchkula. The appeals were related to the assessment years 2012-13 and 2014-15, respectively. The primary issue was the CIT's decision to set aside the assessment orders under Section 263 of the Income Tax Act, citing that the Assessing Officer had not conducted a proper investigation into the share application money and premium received by the companies. The Tribunal found no error in the CIT's decision, leading to the dismissal of both appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46808 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Keywords: Set aside
• Section: 148; 263; 68

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 518/CHD/2019 नधा\u0011रण वष\u0011 / Assessment Year: 2014-15 Shaktiman Cement & Packaging Industries Ltd. Chandigarh CA Ajay Kumar Jain C/o Kansal Singla & Associates, SCO 80-81, 4th Floor, Chandigarh. V s The PCIT, Panchkula. \u0016थायी लेखा सं./PAN NO: AAQCS4885G अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent & आयकर अपील सं./ ITA No. 519/CHD/2019 नधा\u0011रण वष\u0011 / Assessment Year: 2012-13 Shaktiman Bio Agro Industries Private Ltd., Chandigarh. CA Ajay Kumar Jain C/o Kansal Singla & Associates, SCO 80-81, 4th Floor, Chandigarh. Vs The PCIT, Panchkula. \u0016थायी लेखा सं./PAN NO: AAOCS6385H अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : None Revenue by : Smt. Kusum Bansal, CIT,DR Date of Hearing : 03.04.2025 Date of Pronouncement : 07.04.2025 HYBRID HEARING O R D E R PER RAJPAL YADAV, VP The present two appeals are directed at the instance of the assessee against the separate orders of ld. ITA No.518&519/CHD/2019 A.Y.2014-15 & 2012-13 2 Commissioner of Income Tax (in short ‘the CIT) dated 21.02.2019 passed under Section 263 of the Income Tax Act for assessment year 2014-15 and 2012-13 respectively. 2. 3rd April,2025 was the 36th occasion when these appeals were listed for hearing. But inspite of service of notice, no one has come present on behalf of the assessee. A perusal of the record would indicate that earlier Shri Ajay Jain, Chartered Accountant was the counsel of the assessee. He was present in the Court and we enquired from him. He submitted that he has withdrawn his Power of Attorney and he has no instructions. He further pointed out that whereabouts of the Directors of the assessee company is not known at present, to the Department as well as to him. Compelled with this situation, he withdrew his Power of Attorney. The Tribunal has affected the service on the address given by the assessee in Form No. 36 in both the years. Therefore, under the compelling circumstances, we have concluded the hearing with the assistance of ld. CIT DR. ITA No.518&519/CHD/2019 A.Y.2014-15 & 2012-13 3 3. The facts on all vital points are common in both the years, therefore, for the facility of reference, we are taking the facts from assessment year 2012-13 but all important facts will be taken note simultaneously. It emerges out from the record that assessee has filed its return of income electronically on 30.09.2012 and 29.11.2014 declaring income of Rs.2,10,950/- and ‘nil’ in assessment year 2012-13 and 2014-15 respectively. In assessment year 2012-13, assessment was reopened by issuing of notice under Section 148 whereas in assessment year 2014-15, scrutiny assessment was taken place. A perusal of the record would indicate that in assessment year 2012-13, the share capital was increased by a sum of Rs.57,80,000/-. Apart from this amount, assessee has received premium of Rs.98,65,000/-. In assessment year 2014-15, the share capital increased by a sum of Rs. 3,59,66,670/-. The AO has accepted alleged share application money partly. 4. The Commissioner has gone through the record carefully and formed an opinion that while accepting the share application money alongwith premium, AO has not ITA No.518&519/CHD/2019 A.Y.2014-15 & 2012-13 4 carried out any investigation, rather it emerges out that assessment order was passed on 29.12.2016 and assessee has submitted details on 16.12.2016. There was no occasion for the AO to conduct an enquiry on the details submitted by the assessee. Therefore, he took action under Section 263 in both the years and set aside both the assessment orders. 5. With the assistance of ld. CIT DR, we have gone through the record carefully. It emerges out from the record that assessee has received share application money alongwith share premium. In assessment year 2012-13, the detail of share application has been noticed by the AO but AO could not carry out the enquiry as contemplated under Section 68 of the Income Tax Act. In other words, it was practically not possible for him to verify identity of the share applicants, their credit worthiness and genuineness of the transaction because some of the share applicants were from Kanpur, Shahjahanpur (UP), Rampur (District Pilibhit) etc. 6. The assessee did not appear before the Tribunal and did not submit any details in support of its appeals. After going through the order of the CIT passed under Section 263 of the ITA No.518&519/CHD/2019 A.Y.2014-15 & 2012-13 5 Act, we do not find any error. Accordingly, both the appeals are dismissed. 7. In the result, both appeals are dismissed. Order pronounced on 7 t h April,2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "