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Income Tax Appellate Tribunal, “C” BENCH KOLKATA
Before: SHRI SANJAY GARG & SHRI GIRISH AGRAWAL
O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of Ld. CIT(A)- 5, Kolkata vide Appeal No. 54/CIT(A)-5/Wd-14(14/15-16/Kol) dated 02.02.2018 passed against the assessment order by the ITO, Ward- 14(4), Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) dated 25.03.2015.
None appeared on behalf of the assessee. Shri Vijay Kumar, Addl. CIT, DR appeared on behalf of the revenue.
Grounds taken by the assessee in the present appeal are as under:
Alpha Vyapaar Pvt. Ltd. AY 2012-13 “1. In the facts and circumstances of the case, the Ld. CIT(A) erred in summarily dismissing the appeal filed by the assessee without discussing the grounds on merits which is unjustified, illegal and against the provisions of the Act.
2. That the Ld. CIT(A) officer has erred in law as well as in facts in not providing reasonable opportunity to the appellant of being heard.
3. Without prejudice to above, in the facts and circumstances of the case the CIT (A) erred in dismissing the appeal filed by the appellant thereby confirming the addition of Rs. 2,40,00,000/- made by the AO introduced as Share Capital and Premium which is unjustified, illegal and against the provisions of the Act.
4. In the facts and circumstances of the case, while the assessee did not get justice from the Assessing Officer, he was denied the principles of natural justice by the Ld. CIT (A) also, which is unjustified, illegal and against the provisions of the Act.
5. The appellant craves le1ave to add/alter any grounds of appeal
before or at the time of hearing.
6. The grounds of appeal taken are without prejudice to each other.
7. That the Ld. Assessing officer has erred in law as well as in facts in not providing reasonable opportunity to the appellant of being heard.
8. That the Ld. Assessing officer has erred in law as well as in facts in adding a sum of Rs. 2,40,00,000/- (as increase in share capital and securities premium) on the basis of erroneous presumptions & surmises.
9. That the Ld. Assessing officer has erred in law as well as in facts in adding a sum of Rs.50/- as expenditure not forming part of total income.
10. That the Ld. Assessing officer has erred in law as well as in facts in charging the interest u/s. 234B amounting to Rs. 28,03,248/- of the Income Tax Act, 1961.
11. That the Ld. Assessing Officer erred in law as well as in facts in initiating Penalty Proceeding u/s. 271(1) (c) of the Income Tax Act,1961.
12. That the order is bad in law as well as in facts and is wholly arbitrary, unreasonable, and perverse and in violation of the principles of natural justice.
13. That the appellant craves to add, alter, amend or withdraw any grounds of appeal before or at the time of hearing.”
In this case, assessee filed its return of income on 17.09.2012, reporting a total income at Nil. Case of the assessee was selected for scrutiny. Statutory notices were issued and duly served on the assessee. In the course of assessment proceedings, Ld. AO observed Alpha Vyapaar Pvt. Ltd. AY 2012-13 that during the year, assessee raised share capital by issue of shares, amounting to Rs. 2,40,00,000/-.
According to Ld. AO, during the course of assessment proceedings some discrepancies related to issue of share capital emerged. A letter was issued to the assessee on 02.03.2015 where in the assessee was given opportunity to produce director of the assessee company and one director each of all the shareholder companies. In response to the same Ld. AR of the assessee appeared on 09.03.2016 and filed some papers relating to shareholders. He stated vide order sheet noting that none of the share allottees could be contacted. Therefore, no one could be produced. Regarding director of assessee, even they did not appear. However, after considering the details furnished by the assessee during the course of assessment proceedings, the facts of the case, the inquiries made and other details available on record, ld. AO concluded that the assessee miserably failed to prove the identity and genuineness of transaction and creditworthiness of shareholders. Therefore, the amount of share capital and share premium raised during the year i.e. Rs 2,40,00,000/- was treated as unexplained and added to the total income of the assessee u/s. 68 of the Act. Aggrieved, assessee preferred an appeal before the Ld. CIT(A).
Before the ld. CIT(A) made detailed submission and explanation in support of its claim which has been reproduced in the order itself. After considering the multifold contentions of the assessee, Ld. CIT(A) sustained the addition towards share capital and premium by giving his finding as under:
“After careful consideration of the submission of the appellant, the relevant assessment records, various judicial decisions including that of the Apex Court & Jurisdictional High Court, and it has to be held that the appellant could not establish the genuineness of transaction and creditworthiness of the shareholders. The addition of Rs.2,40,00,000/- is confirmed. The appeal on these grounds fails and is therefore dismissed. The AO is directed accordingly.”
Alpha Vyapaar Pvt. Ltd. AY 2012-13 6.1. Aggrieved, assessee is in appeal before the Tribunal.
We note that there is no appearance before us, on behalf of the assessee despite several notices having been issued and served on the assessee through e-mail, RPAD, more particularly, last one fixing the date of hearing on 9th February, 2023, sent through Sr. DR, ITAT, Kolkata via e-mail. Hence, finding no other alternative, we adjudicate this appeal ex parte qua the assessee, with the able assistance of Ld. Sr. DR. 7.1. Before us, at the time of hearing, neither anybody appeared on behalf of the assessee nor filed any application seeking adjournment. Case was fixed for hearing on 09.02.2023 and we note that several notices have been issued to the assessee. Details of these notices issued by the registry are as under: (i) Notice issued dated 25.07.2022 by RPAD fixing on 16.08.2022. (ii) Notice issued dated 19.08.2022 by RPAD fixing on 21.11.2022. (iii) Notice issued dated 09.01.2023 by RPAD fixing on 09.02.2023 and also through Ld. Sr. DR vide e-mail on 02.07.2023, which is reproduced as under: