SHARNYA INFRA PRIVATE LIMITED,AHMEDABAD V. DCIT, CIRCLE-4(1)(1), AHMEDABAD

ITA 1617/AHD/2024

AI Insights

Sharnya Infra Private Limited appealed against the ex-parte appellate order passed by the Commissioner of Income Tax (Appeals), which arose from an assessment order under sections 143(3) r.w.s. 144B of the Income Tax Act. The assessment included substantial additions to the assessee's income, citing unexplained increases in share capital, non-current liabilities, and trade payables, along with unsubstantiated purchase values. The Tribunal found that the Assessing Officer had not adequately considered the documents and replies provided by the assessee during the faceless assessment proceedings. Consequently, the Tribunal decided to set aside the matter for re-evaluation by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398355 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Corroborative evidences; Principle of natural justice
• Section: 143(3); 142(1); 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T. R. Senthil Kumar, Judicial Member Sharnya Infra Private Limited 602-603, 6th Avenue, Opp. Textile Co-operative Bank, Mithakhali Six Road, Navrangpura H.O. Ahmedabad City, Ahmedabad-380009 Gujarat PAN: AAFCC5437R (Appellant) Vs The DCIT, Circle-4(1)(1), Ahmedabad (Respondent) Assessee Represented: Shri M.K. Patel, A.R. Revenue Represented: Shri Rignesh Das, CIT-DR Date of hearing : 03-06-2025 Date of pronouncement : 06-06-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the exparte appellate order dated 29.08.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 143(3) r.w.s. 144B of the Income Tax Act, ITA No: 1617/Ahd/2024 Assessment Year: 2022-23 I.T.A No. 1617/Ahd/2024 A.Y. 2022-23 Page No Sharnya Infra Pvt. Ltd. vs. DCIT 2 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2022-23. 2. Brief facts of the case is that the assessee is a Company engaged in the business of Construction. The assessee filed its Return of Income for the Asst. Year 2022-23 on 14-09-2022 declaring an income of Rs.86,12,830/-. The return was taken for scrutiny assessment and various notices issued. In response, the assessee furnished various details. The Assessing Officer made addition on account of increase in share capital of Rs.67,50,000/- u/s. 68 of the Act, in the absence of confirmation with supporting evidences. Similarly non-current liabilities of Rs. 10,47,62,861/- was added u/s. 68 of the Act and trade payables of Rs.79,84,574/- was added u/s. 68 of the Act and directed to be taxed u/s. 115BBE of the Act. The Assessing Officer also made addition of Rs.3,61,68,203/- being 10% of the total purchase value by the assessee in the absence of bills and vouchers. Thus the Assessing Officer determined the assessed income at Rs.16,74,09,984/-. 3. Aggrieved against the assessment order, assessee filed an appeal before Ld. CIT(A) who has given five opportunities of hearing between 18-07-2024 to 21-08-2024. However there was no response from the assessee either by way of seeking adjournment or by way of filing written submission. Therefore with the available material on record, Ld. CIT(A) confirmed the additions made by the Assessing Officer and dismissed the assessee appeal. I.T.A No. 1617/Ahd/2024 A.Y. 2022-23 Page No Sharnya Infra Pvt. Ltd. vs. DCIT 3 4. Aggrieved against the appellate order, assessee is in appeal before us raising the following Grounds of Appeal: 1) The increase in share capital of Rs.67,50,000 is with in the compliance requirements Of the companies Act, 2013 and we also have filled relevant forms for the same and for Your reference we are here attaching the forms that we filled at ministry of corporate affairs. 2) The increase in non-current liability is due to increase in long term loans, we have taken some secured and unsecured loans from different financial and non-financial institutes to fight financial crises happening in the organization and we also provided ledger confirmations of unsecured loans to the learned assessing officer we also have deducted and paid the IDS on interest paid on such unsecured loans so this is the reason for increase in amount of non-current liability. 3. We have gone through financial crises and that's the reason we were not able to meet our financial obligation related to trade payable and as a consequence of this we currently do not have a professional bond with the same trade parables.so it is difficult for us to provide ledger confirmation but we are trying and we are providing confirmation of certain trade payable balance amount we are also providing the ledger of the same. 4. We are submitting the GSTR3B AND GSTR 2A summary of financial year 2021-22 and also we are providing scanned copy of purchase bill which was made during the year 2021-22 which will consider substantial amount of our total purchase. 5 At the Time of Application of Appeal We Have Uploaded All Supporting Documents Related To Notice But The Assessing Officer Has Ignored All Documents And With Out Any Paper Notice He Has Dismissed The Order. In Our Country We All Are Generally Follow Paper Documents, Email From Department Are Post In Our Spam Mail, & Spam Mail Are Not Read By Any Person, As We Have Provided All Documents Related To Notice, But Every Time Short Notice Has Been Given By Assessing officer, Request To Approve Appeal And Start Proceeding As Earliest. 5. Ld. Counsel Mr. M.K. Patel appearing for the assessee submitted before us that all necessary details were furnished before the Assessing Officer during the course of assessment proceedings. The I.T.A No. 1617/Ahd/2024 A.Y. 2022-23 Page No Sharnya Infra Pvt. Ltd. vs. DCIT 4 notices issued u/s. 142(1) and replied filed by the assessee is very much reproduced in the assessment order. The reply filed by the assessee makes it clear that all necessary informations with the documents were produced before the Assessing Officer. However without appreciating the same, the Ld. A.O. confirmed the additions. However on appeal, the assessee could not participate because of miscommunication. Therefore pleaded that the matter be set aside back to the file of Jurisdictional Assessing Officer to decide the case on merits. 6. Per contra, Ld. CIT-DR appearing for the Revenue supported the order passed by the Lower Authorities. 7. We have given our thoughtful consideration and perused the materials available on record. Regarding the addition made by the Assessing Officer, the assessee filed its detailed reply which is found in the assessment order is reproduced for ready reference: 1. Party Wise Ledger Accounts for Long Term Borrowings, As Per Format Specified By You. 2. Party Wise Ledger Accounts For Trade Payable, We Have Provided Confirmation of Unsecured Loan Ledger from Our Account, We Are Working On Confirmation From Parties, Request To Allowed Time To Us. 3. Party Wise Ledger Accounts for Share Capital Along With The Share Holders Bank Account Statements. 4. Ledger Accounts for Sales And Purchases. 5. We Have Provided Documentary Support For Valuation Of The Equity Share Amount 1,02,50,000/-, Working Is Pending We Will Provide It Shortly 6. Bank Accounts Statement For The Year F.Y. 2021 2022. I.T.A No. 1617/Ahd/2024 A.Y. 2022-23 Page No Sharnya Infra Pvt. Ltd. vs. DCIT 5 7.1. Regarding the share capital addition of Rs.67,50,000/-, the Assessing Officer held that in the absence of information regarding the share capital increase, the entire share capital is added as the income of the assessee. From the reply filed by the assessee, party- wise ledger account of share capital and shareholders bank account statements furnished by the assessee. The Assessing Officer made the entire share capital as unexplained addition which is not sustainable in law. Similarly party-wise ledger account for long term borrowings as specified by the Assessing Officer in his notice u/s. 143(2) was furnished by the assessee. Without considering the same, the Assessing Officer made addition which is not sustainable in law. Similarly the other additions made by the Assessing Officer are without verifying the replies and documents submitted by the assessee during the Faceless Assessment proceedings. Therefore in the Principle of Natural Justice, we deem it fit to set aside the matter back to the file of Jurisdictional Assessing Officer to consider the same on merits by giving proper opportunity of hearing to the assessee and pass order on merits. 8. In the result, the appeal filed by the Assessee allowed for statistical purpose. Order pronounced in the open court on 06-06-2025 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 06/06/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee I.T.A No. 1617/Ahd/2024 A.Y. 2022-23 Page No Sharnya Infra Pvt. Ltd. vs. DCIT 6 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "