SLS TELECOM PVT. LTD.,KOLKATA vs. ITO, WARD 10(2), KOLKATA, KOLKATA

Brief facts of the case are that the assessee e-filed its return of income on 07.09.2015 for AY 2015-16 declaring total income of Rs.5,54,680/-. On verification of records, it is observed that the assessee has received an amount of Rs.80,00,172/- from the bank account of M/s. Dealmark Pvt. Ltd., which has been identified as the accommodation entry provider. For this, notice under section 148 was issued on 28.07.2022. As per information available with the Department, the assessee has taken bogus accommodation entry of Rs.80,00,172/- during FY 2014-15 pertaining to AY 2015- 16, which was reflected in its bank account as per the report received from the DDIT(Inv.), Unit-3 dated 11.12.2018. In view of this, the assessee was required to show cause as to why the amount of Rs.80,00,172/- received by the assessee from M/s. Dealmark Pvt. Ltd. should not be considered sham/manipulated transactions and why whole of transactions /so-called unsecured loan should not be treated as unaccounted income and added back to the total income of the assessee. The assessee furnished no documentary evidence or any details to substantiate its case. Therefore, the accommodation entry taken to the tune of Rs.80,00,182/- was treated as unaccounted income of the assessee. The amount of Rs.2,40,005/- i.e. 3% of Rs.80,00,182/- (being commission paid to the entry provider) was also added as unexplained expenditure under section 69C read with section 115BBE of the Act. Finally, ld. Assessing officer determined the

The ld. CIT(Appeals) after considering the submission, perusing the assessment order and the material available on record, dismissed the appeal of the assessee by upholding the order of ld. Assessing Officer. Even the assessee did not make any compliance in regard to the transactions with M/s. Dealmark Pvt. Ltd. and not produced demat account statements or other verifiable evidence. The ld. CIT(Appeals) was of the view that the assessee has not been able to show that the conclusion drawn by the ld. Assessing Officer was incorrect in any manner. Being aggrieved, the assessee preferred an appeal before the Tribunal.

At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) just simply upholding the order of ld. Assessing Officer dismissed the appeal of the assessee without going into merit of the case. He prayed before the Bench to set aside the order passed by the ld. CIT(Appeals) and also prayed to give one opportunity to substantiate its case.

On the other hand, it was the submission of the ld. Departmental Representative that the assessee failed to offer any explanation/supporting documents in respect of the grounds of appeal raised by it before the ld. Assessing Officer as well as ld. CIT(Appeals). The ld. D.R. pleaded that inspite of sufficient opportunities provided to substantiate its case, the assessee did

We have heard both the sides and perused the material available on record. The assessee did not furnish any documentary evidence in support of its claim before the ld. Assessing Officer and the ld. CIT(Appeals) The ld. CIT(Appeals) just simply upholding the order of ld. Assessing Officer dismissed the appeal of the assessee without going into merit of the case. Considering the totality of the facts and circumstances of the case, we find that the assessee was not in a position to file some of the evidences before the ld. CIT(Appeals). Therefore, in order to ensure the principle of natural justice, we are of the view that it is a fit case to provide one more opportunity to the assessee and remit the matter back to the file of ld. CIT(Appeals) to decide the issues afresh. Therefore, we remit the matter back to the file of ld. CIT(Appeals) with a direction to dispose of the appeal without any inference on the observations of earlier order passed by him. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) by producing proper books of accounts and other additional evidences in support of its claim, failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits of the case, based on the materials available on the record. Thus, the grounds raised by the assessee in the appeal are partly allowed for statistical purposes.