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ORDER / आदेश This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 09.06.2023 for the assessment year 2012-13.
The assessee has raised two effective issues in the various grounds of appeal. The first issue raised is against the confirmation of addition of Rs. 13,00,000/- by the Ld. CIT(A) as made by the AO on account of unexplained cash credit u/s 68 of the Act.
Assessment Year: 2012-13 Capable Tradelink (P) Ltd.
The Ld. Counsel at the outset pointed out that the assessee has raised share capital/share premium of Rs. 2,27,00,000/- during the year comprising Rs. 13,00,000/- towards face value of equity shares and Rs. 2,14,00,000/- towards share premium. The Ld. Counsel drew our attention to decision of the Co-ordinate Bench in the assessee’s case in for AY 2012-13 dated 15.02.2022 wherein the ex-parte order passed by the Ld. CIT(A) confirming the addition of Rs. 2,14,00,000/- was restored to the file of AO for de novo adjudication by the tribunal. The operative part is as under:
“3. The ld. Counsel for the assessee has submitted that the main issue involved in this appeal is regarding the validity of the addition made by the Assessing Officer (hereinafter the ‘AO’) of Rs. 2,14,00,000/- on account of unexplained cash credit being share capital and premium invoking the provisions of Section 68 of the Income Tax Act. The Ld .Counsel for the assessee has further invited our attention to the Ld. CIT(A) which is an ex-parte order. The Ld. Counsel for the assessee has further submitted that due to COVID related problems and restrictions, the assessee could not appear before the Ld. CIT(A) on the date of hearing. The Ld. Counsel for the assessee has further submitted that though, the assessee had furnished the necessary documents before the AO, however, the assessee could not produce the directors of the company in response to the summons issued by the AO u/s 131 of the Act because of unavoidable circumstances. That the assessee is ready to furnish all the required documents and even to produce the directors of the company before the AO. the Ld. Counsel for the assessee has undertaken to produce the directors of the company before the AO as and when required by him for verification of the transactions etc. The Ld. D.R on the other hand, has relied on the finding of the lower authorities.
We have heard the rival contentions and gone through the record. In this case, the impugned order of the Ld. CIT(A) is an ex-parte order. The assessee has duly explained that due to COVID related problems and restrictions, he could not appear before the Ld. CIT(A) on the date of hearing. Further, the Ld. Counsel for the assessee has undertaken to produce the directors of the company before the AO for verification of the genuineness of the transactions etc.
5. In view of this, the impugned order of the Ld. CIT(A) is set aside and the matter is restored to the file of the AO for de-novo assessment. Needless to say that the assessee will produce the necessary documents and produce the directors of the company or other parties, if so required by the AO, to verify the genuineness of the transactions and thereafter, the AO will pass a speaking order in accordance with law.” The Ld. Counsel therefore prayed before the Bench that the present appeal was also decided ex-parte by the Ld. CIT(A) due to non-appearance of the assessee and prayed that on the similar lines the same may also be restored to the file of the AO for fresh adjudication after affording reasonable opportunity of hearing to the assessee.
Assessment Year: 2012-13 Capable Tradelink (P) Ltd.
4. After hearing the rival contentions and perusing the material on record, we find merit in the contentions of the Ld. A.R that since the issue of share premium of Rs. 2,14,00,000/- has already been restored to the file of AO by the Co-ordinate Bench through the above order and therefore the issue of face value of shares of Rs. 13,00,000/- which is the issue before us also needs to be restored to the file of AO. Accordingly we set aside the order of Ld. CIT(A) and restore the issue to the file of AO to decide the same de novo after affording a reasonable opportunity of hearing to the assessee.
In the result, appeal of the assessee is partly allowed for statistical purposes.
Order is pronounced in the open court on 4th December, 2023