RANISATI CAPITAL PRIVATE LIMITED ,KOLKATA vs. I.T.O.,WARD-1(3), KOLKATA

The present appeal is directed at the instance of the assessee against the order of the Learned Commissioner of Income Tax (Appeal) - 3, Kolkata (hereinafter the “ld. CIT(A)”) dt. 23/05/2019, passed u/s 250 of the Income Tax Act, 1961 (“the Act’), for Assessment Year 2015-16.

The assessee has raised seven (7) grounds of appeal. In the first ground the assessee has pleaded that the ld. CIT(A) has erred in deciding the appeal ex-parte. In the second ground the assessee has submitted that it be permitted to produce additional evidence in terms of Rule 46A of the Income Tax Rules, 1962. In Ground No. 3, the assessee has submitted that the order passed by the ld. CIT(A) is bad in law because it has not decided the appeal ground-wise. Similarly, rest of the four grounds are also peripheral arguments of this nature without pointing out any specific grievance.

A perusal of the assessment order would reveal that the assessee has filed its return of income on 29/01/2013 declaring the total loss at Rs.66,850/-. The case of the assessee was selected for scrutiny assessment and notice u/s 143(2) of the Act was issued and served upon the assessee. A perusal of the account revealed that the assessee has raised share capital including premium of Rs.1,41,00,000/-. The component of premium is Rs.1,26,90,000/-. The ld. Assessing Officer directed the assessee to submit the details of the applicant and their creditworthiness but nothing was submitted by the assessee and in an ex-parte assessment order passed according to the best judgment of the Assessing Officer, addition of Rs.1,41,00,000/- has been made to the total income of the assessee.

Dissatisfied with the assessment order, the assessee filed the appeal before the ld. CIT(A). However, the situation with regard to the representation before the ld. CIT(A) remained the same as was available before the Assessing Officer. In other words, the ld. First Appellate Authority also concurred with the Assessing Officer in the absence of any details filed by the assessee.

We have perused the record carefully and find that the assessee is a paper company without having any business and used to provide accommodation entries. It failed to submit the details exhibiting its financial

In the result, appeal of the assessee is dismissed. Order pronounced in the Court on 15th December, 2022 at Kolkata.