TROPEX SUPPLIERS PVT. LTD. ,KOLKATA V. ITO,WARD-4(1), KOLKATA. , KOLKATA

ITA 1231/KOL/2024

AI Insights

The case involves Tropex Suppliers Private Limited, which appealed against the order of the CIT(Appeals) at the National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2012-2013. The primary issue arose from the scrutiny of a large share premium received by the company, which led to an assessment of unexplained cash credit amounting to Rs. 6,31,96,180. The ITAT noted that the CIT(Appeals) had not considered the case on its merits but merely upheld the Assessing Officer's order. The ITAT decided to remit the case back to the CIT(Appeals) to ensure the principles of natural justice were met, providing the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473219 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 142(1); 143(2); 131

Judgement Text

" ITA No. 1231/KOL/2024 (A.Y. 2012-2013) Tropex Suppliers Private Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Sanjay Awasthi, Accountant Member I.T.A. No. 1231/KOL/2024 Assessment Year: 2012-2013 Tropex Suppliers Private Limited,…………Appellant 113, Netaji Subhash Road, 5th Floor, Room No. 93, Kolkata-700001 [PAN:AABCT1459N] -Vs.- Income Tax Officer,……………………………....Respondent Ward-4(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Miraz D. Shah, A.R., appeared on behalf of the assessee Shri A.R. Chatterjee, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: January 22, 2025 Date of pronouncing the order: February 26, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), ITA No. 1231/KOL/2024 (A.Y. 2012-2013) Tropex Suppliers Private Limited 2 National Faceless Appeal Centre (NFAC), Delhi dated 26th October, 2023 passed for Assessment Year 2012-13. 2. Brief facts of the case are that the assessee is a Private Limited Company, who filed its return of income on 24.09.2012 showing total income of Rs.45,184/-. The case was selected for scrutiny assessment through CASS with the reason large share premium received. Accordingly, notice under section 143(2) was issued and served on the assessee-company. Later notice under section 142(1) was also issued to the assessee. In response to the said notices, ld. Authorized Representative of the assessee appeared and produced statement of accounts for the AY 2012-13 including e-filed returns of the assessee-company. It is noticed that the assessee-company issued its shares involving different entities against high premium. Thereafter notice under section 131 was issued to the asseessee requiring to appear personally alongwith all the Principal Officers, Directors of the investor companies and individual investors for the purpose of verifying identity and creditworthiness of the shareholders and genuineness of the transactions made by them in the assessee-company as well as analysis of various entries in Bank statements, cash book, ledger etc. The assessee company has no plausible explanation in this regard. Due to non-compliance by the assessee, the ld. Assessing Officer has left with no alternative but to assess the income of assessee on the basis of information/data available on the records and the assessment was completed under section 143(3) of the Act assessing the total income at Rs.6,31,96,180/-. ITA No. 1231/KOL/2024 (A.Y. 2012-2013) Tropex Suppliers Private Limited 3 On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 3. The ld. CIT(Appeals) has given several opportunities to the assesese to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal on 26th October, 2023. 4. On being aggrieved, the assessee preferred an appeal before the ITAT. 5. At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) did not consider the case on merit, rather he just upheld the order passed by the ld. Assessing Officer. Therefore, he pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals). 6. At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order assessing the taxable income at Rs. Rs.6,31,96,180/ as unexplained cash credit. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted ITA No. 1231/KOL/2024 (A.Y. 2012-2013) Tropex Suppliers Private Limited 4 that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the orders passed by the revenue authorities. 7. We have heard the rival submissions and perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26/02/2025. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 26th day of February, 2025 Copies to :(1) Tropex Suppliers Private Limited, 113, Netaji Subhash Road, 5th Floor, Room No. 93, Kolkata-700001 ITA No. 1231/KOL/2024 (A.Y. 2012-2013) Tropex Suppliers Private Limited 5 (2) Income Tax Officer, Ward-4(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) CIT(Appeals), NFAC, Delhi; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "