KANPUR PROPERTIES & FINANCE (P) LTD.,,KOLKATA vs. DCIT, CIRCLE 7(1), KOLKATA,, KOLKATA

Brief facts of the case are that, the case of the Assessee was reopened u/s 147 of the Act to ‘verify the transaction received by the Assessee from M/s Coral Environment Private Limited to the tune of Rs.57,00,000/-’. During the assessment proceedings, a notice u/s 133(6) of the Act has been issued to the said entity i.e., M/s Coral Environment Private Limited to find out the authenticity of the

The Learned Counsel for the Assessee at the outset submitted that the said entity M/s Coral Environment Private Limited has been amalgamated with M/s Dahisar Traders Private Limited in view of the order passed by the Hon’ble High Court at Calcutta in Company Petition No.547 of 2013 connected with Company Application No.289/2023. Therefore, submitted that said entity M/s Coral Environment Private Limited has not made compliance to the notice issued by the Assessing Officer u/s 133(6) of the Act. The Learned Counsel has placed the Judgment of Hon’ble Jurisdictional High Court to substantiate his claim. Thus, submitted that an opportunity may be given to the Assessee to prove the genuineness of the transactions and if the notice is issued to the amalgamated entity, Page | 2

Per contra, the Ld. DR relying on the orders of the Lower Authorities sought of dismissal of the Appeal.

We have heard the parties and perused the material available on record. In order to verify the transactions made by the Assessee with M/s Coral Environment Private Limited to the tune of Rs.57,00,000/-, the Assessing Officer issued notice u/s 133(6) of the Act to the said entity. However, the said entity has not made any compliance or filed reply before the Assessing Officer. Even the Assessee has not made full compliance before the Authorities below. As could be seen from the Judgment of the Jurisdictional High Court in Company Petition No.547 of 2013 connected with Company Application No.289/2013 dated 18.02.2014, the said entity M/s Coral Environment Private Limited has been amalgamated with M/s Dahisar Traders Private Limited with effect from 01.04.2013. Considering the above facts and circumstances, we remand the matter to the file of the Assessing Officer by providing an opportunity to the Assessee to prove the genuineness of the transactions with erstwhile M/s Coral Environment Private Limited, and now amalgamated with M/s Dahisar Traders Private Limited. The Assessing Officer is at liberty to make enquiry with the amalgamated Company and decide the issue Page | 3

In the result, Appeal of the Assessee is partly allowed for statistical purposes.