LOCODEL SOLUTIONS PVT. LTD.,BIHAR vs. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-1 (1), BIHAR

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ITA 591/PAT/2024Status: DisposedITAT Patna27 November 2024AY 2015-164 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that neither the AO nor the CIT(A) had thoroughly examined the issues related to share premium received from residents and non-residents, nor the evidences filed by the assessee. Therefore, the case was restored to the AO for fresh adjudication.

What were the facts?

The assessee's appeal against an ex-parte assessment order, which included a large addition for share premium, was dismissed by the CIT(A). The CIT(A) dismissed the appeal without properly examining the additional evidences filed by the assessee, even after a remand report was obtained from the AO.

What were the issues?

Whether the share premium received from non-residents is taxable under Section 56(2)(viib) and whether the AO and CIT(A) properly examined the evidences and legal issues.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 56(2)(viib)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Appellant: Shri Deepesh Jain, AR
For Respondent: Shri Ajay Kr. Shukla, DR
Hearing: 13.11.2024Pronounced: 27.11.2024

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 26/08/2024 for the AY 2015-16.

2.

The assessee has filed various grounds of appeal before the Tribunal, challenging the order of ld. CIT (A) as legal issue as well as on merit.

3. At the outset, we find that the assessment has been framed ex-parte by the ld. AO u/s 143(3) of the Act vide order dated 13.12.2017. When the assessee failed to appear on the given dates of hearing, the 4. In the appellate proceedings, the assessee filed the evidences before the first appellate authority under Rule 46A(1), which were remanded to the file of the ld. AO and a very cryptic remand report has been made by the ld. AO and the copy of which is placed at Paper Book pages 163 to 164. The ld. CIT (A) without commenting on any of these additional evidences, dismissed the appeal of the assessee on the legal as well as on merit.

5. Aggrieved assessee is in appeal before us. After hearing the rival contentions and perusing the materials available on record. We find that though the assessment was made u/s 143(3) of the Act vide order dated 13.12.2017, but as a matter of fact, the assessee did not file any evidences before the ld. AO and the assessment was framed as best judgement assessment based on the material available on record by making addition of ₹65,37,82,190/-. We further observe that even in the remand proceedings, the ld. AO has not gone into the issue of large share premium received by the assessee from non- resident Indian as well as Indian subscribers. We note that the share premium to the tune of ₹64,87,78,500/-, was received from non- resident, whereas the remaining amount of ₹59,39,133/- was stated to be received from resident subscribers. According to the assessee, the provisions of section 56(2)(viib) of the Act are not appliable to the share premium received from non-resident. In our opinion, the issues

6.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 27.11.2024.

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