AARYA INDUSTRIAL PRODUCTS PVT. LTD.,KOLKATA vs. DCIT, CIRCLE - 10(1), KOLKATA, KOLKATA

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ITA 1106/KOL/2018Status: DisposedITAT Kolkata15 March 2023AY 2014-154 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the CIT(A) due to the assessee's non-cooperation and failure to prosecute the appeal. The Tribunal proceeded to decide the appeal based on available facts and the respondent's arguments.

What were the facts?

The assessee failed to provide details and evidence regarding share capital, consultancy charges, and agricultural income to the Assessing Officer and the CIT(A). The assessee also did not appear before the ITAT for multiple hearings.

What were the issues?

Whether additions made by the AO on account of unexplained income, unexplained cash credit, disallowance of consultancy charges, and disallowance under Section 14A are justified, given the assessee's failure to provide supporting evidence.

Which sections of the Income-tax Act were involved?

Section 68,Section 69,Section 37(1),Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Rajesh Kumar]

This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeal)-4, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 06.03.2018 for the AY 2014-15.

2.

None appeared on behalf of the assessee.

3.

The assessee has challenged the order of Ld. CIT(A) on various grounds of appeal such as confirmation of addition of Rs. 7,19,90,713/- as unexplained income

Assessment Year: 2014-15 Aarya Industrial Products Pvt. Ltd. u/s 68/69 of the Act, confirmation of Rs. 10,00,00,000/- as unexplained cash credit u/s 68.confirming the disallowance of consultancy charges u/s 37(1) of the Act ,disallowance of shortage of agro plantation and disallowance u/s 14A read with Rule 8D on which aggregate addition of Rs. 17,42,59,217/- was made by the AO.

4. Facts in brief are that the case of the assessee was selected for scrutiny through CASS and statutory notices were duly issued and served on the assessee however there was no compliance on the part of the assessee on various occasions allowed by the AO to furnish the details. The assessee has issued 50,00,000/- shares with face value of Rs. 10/- at a premium of Rs. 10/- per share thereby raising Rs. 10,00,00,000/- from M/s Kalimata Infotech Pvt. Ltd. which remained unverified and assessee did not furnish any details of the investor as well as the source and creditworthiness of the investor. Similarly consultancy charges of Rs. 10,16,335/- were paid to some agencies and details were not furnished. Similarly the AO called for the information in respect of agricultural income of Rs. 7,19,90,713/- and expenses incurred on shortage of agro plantation charges commission etc however the bills, vouchers were not filed. The Ld. Counsel for the assessee Shri Sanjiv Sah, undertook to file the evidences/information on every occasion but every time he turned up requesting for next date and therefore the assessment was completed and assessed income was computed Rs. 17,42,59,217/- in the assessment framed u/s 143(3) vide order dated 29.12.2016.

5.

The Ld. CIT(A) allowed ten opportunities to the assessee from time to time on various dates however on the first eight dates no one appeared and sought adjournment. On the 9th occasion i.e. 19.01.2018 Mr. Manish Tiwari attended the proceedings but again sought adjournment as per following table:

SL. No. Date of Notice Date of hearing Remarks 1. 01.09.2017 18.09.2017 None attended. Sought Adjournment. 2. 18.09.2017 25.09.2017 None attended. Sought Adjournment. 3. 25.09.2017 13.10.2017 None attended. Sought Adjournment.

Assessment Year: 2014-15 Aarya Industrial Products Pvt. Ltd.

4.

13.10.2017 02.11.2017 None attended. Sought Adjournment. 5. 03.11.2017 13.11.2017 None attended. Sought Adjournment. 6. 13.11.2017 06.12.2017 None attended. Sought Adjournment. 7. 06.12.2017 04.01.2018 None attended. Sought Adjournment. 8. 04.01.2018 19.01.2018 None attended. Sought Adjournment. 9. 19.01.2018 08.02.2018 None attended. Sought Adjournment. Provided last chance vide order sheet noting dated 19.01.2018 – “Sh. Manish Tiwari, A.R appeared . Sought adj. Last chance given. Case adjourned to 5th March, 18 at 02.30 PM.” 10. 08.02.2018 05.03.2018 Sh Manish Tiwari, A.R attended sought adjournment. Last chance given case adj. to 05.03.2018 (order sheet noting)

Finally the case was decided by Ld. CIT(A) on the basis of available information whereby the assessment order was affirmed by dismissing the appeal of the assessee.

6.

After perusing the material on record and with the assistance of Ld. D.R, we have gone through the facts of the case. We find that even before the Tribunal the case was fixed on 06.09.2022 on which no one appeared. Thereafter again the case was adjourned to 12.01.2023 and again to 23.02.2023 but no one appeared before the Tribunal. Therefore, we are proceeding to decide the appeal on the basis of facts available in the file and after hearing the arguments of Ld. D.R. We have carefully perused the assessment order and appellate order and find that the assessee has not co- operated on the various dates of hearing given to the assessee before us also. Therefore we can reasonably presume that the assessee is not interested in prosecuting this appeal. In absence of any documents/evidences to the contrary, we are in agreement with the conclusion drawn by the Ld. CIT(A) on various issues. Accordingly we upheld the order of Ld. CIT(A) by dismissing the appeal of the assessee.

Assessment Year: 2014-15 Aarya Industrial Products Pvt. Ltd. 7. In the result, the appeal of the assessee is dismissed.

Order is pronounced in the open court on 15th March, 2023

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