KANORIA INFRASTRUCTURE PVT. LTD.,KOLKATA vs. I.T.O., WARD - 3(1),, KOLKATA

At the outset, we note that the appeal of the assessee is barred by limitation by 255 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R strongly oppsed the condoning of the delay. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons and , hence,

The only issue raised by the assessee in the various grounds of appeal is against the order of Ld. CIT (A), confirming the addition of ₹2,14,33,000/- as made by the Ld. AO u/s 68 of the Act by way of unexplained cash credit.

The facts in brief are that the assessee filed the return of income on 03.10.2016, showing total income at ₹nil, which was processed u/s 143(1) of the Act. The assessee was engaged in the business of property development. Thereafter, the case of the assessee was selected for scrutiny and statutory notices along with questionnaire were duly issued and served upon the assessee, which was complied with by the assessee by furnishing all the details and evidences as called for. The Ld. AO on the basis of the reply of the assessee observed that during the year, the assessee had raised fresh paid up share capital of ₹30,00,000/- and share premium of ₹1,77,25,000/- by issue of fresh equity shares and accordingly, called upon the assessee to explain the same. The assessee did not comply with the notices/ show cause notices issued and consequently, the Ld. AO treated the entire share capital/ share premium as unexplained cash credit and added the same to the income of the assessee.

In the appellate proceedings, the Ld. CIT (A) restored the issue to the file of the Ld. AO for denovo adjudication despite the fact that all the compliances were made before the Ld. CIT (A) and all the necessary evidences/documents were placed on record.

After hearing the rival contentions and perusing the materials available on record, we find that the assessee has received the share