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Income Tax Appellate Tribunal, BENCH “C”KOLKATA
Before: Shri Manish Borad & Shri Sonjoy Sarma
आयकर अपील�य अ�धकरण, पीठ “C” , कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL BENCH “C”KOLKATA सम� : �ी मनीष बोरड, लेखा एवं �ी संजय शमा� �या�यक सद�य Before: Shri Manish Borad, Accountant Member and Shri Sonjoy Sarma, Judicial Member आयकर अपील सं.य/ ITA No.2492Kol/2018 Assessment Year: 2012-13 बनाम M/s. JSM Properties Income Tax Officer Pvt. Ltd. Ward 1(2), Kolkata V/s. 7/1A Grant Lane, 4th Aaykar Bhawan Fl.,Room No.4K, P-7 Chowringhee Sq., Kolkata-700 001 Kolkata-700 069. PAN: AABCO 5998B अपीलाथ� /Appellant ��यथ� /Respondent .. अपीलाथ� क� ओर से/By Appellant None ��यथ� क� ओर से/By Respondent Shri Ranu Biswas, Addl. CIT, ld. Sr.DR सुनवाई क� तार�ख/Date of Hearing 23-11-2022 घोषणा क� तार�ख/ 29 -11 -2022 Date of Pronouncement आदेश /O R D E R PER MANISH BORAD, AM.
This appeal of the assessee for the assessment year 2012-13 is directed against the order dt. 30-08-2018 passed by the ld. Commissioner of Income-tax, Appeals [ in short, hereafter referred to as ‘the ‘ld. CIT(A)-1, Kolkata.
Registry has informed that the appeal is time barred by 02 days. Though the assessee has not filed condonation petition, but looking to the 1. ITA No 2492/Kol/2018 AY 2012-13 M/s. JSM Properties P.Ltd
facts of the case, we condone the delay of 02 days in filing this appeal and admit the appeal for adjudication on merits.
When the case was called for, none appeared on behalf of assessee. A perusal of file shows that the case of assessee was fixed on various occasions. It seems that the assessee is not interested to prosecute its appeal. We, therefore, deem it fit and proper to adjudicate the appeal on merits ex parte assessee on the basis of material available on record and with the assistance of the ld. DR.
The assessee has raised the following grounds of appeal for the AY 2012-13:-
For that on the facts of the case the order passed by the Ld. CIT(A)1, Kolkata on 30/08/2018 which was received by the appellant on 28/09/2018 is completely arbitrary, unjustified and illegal. 2. For that on the facts of the case, the ld. CIT(A)-1, Kolkata was wrong in not considering the merit of the case, therefore, the order passed by the ld. CIT(A)-1, Kolkata is completely arbitrary, unjustified and bad in law. 3.For that on the facts of the case the order passed by the ld. CIT(A)-1, Kolkata confirmed the addition of Rs.1,10,20,000/- as unexplained cash credit which was initiated by the ld. AO during the course of assessment proceedings without sufficient time to the appellant u/s. 68 of the I.T Act, 1961. 4.For that the appellant reserves the right to adduce any further ground or grounds, if necessary, at or before the hearing of the appeal. 5. Perusal of records shows that the assessee has challenged the finding of the ld.CIT(A) confirming the addition made u/s. 68 of the Act at Rs. 1,10,20,000/-.
Brief facts of the case are that the assessee is a private limited company. Income at Rs. Nil declaring in return of income was filed on 22.12.2012 for the AY 2012-13. Case selected for scrutiny through CASS (Computer Assisted Scrutiny Selection) followed by serving of statutory
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notices u/s. 143(2) and 142(1) upon the assessee for submissions of requisite documents. But there was no compliance on the part of the assessee. On perusal of records, the ld. AO found that sum of Rs. 5,42,100/- and Rs. 1,04,79,000/- totalling to Rs.1,10,21,100/- were credited/received in the books of account of the assessee from different parties. The ld. AO issued notice u/s. 131 of the Act to the shareholders and directors of the assessee company for verification of said transaction, but there were no compliances. The ld. AO was not satisfied with the genuineness of share capital and share premium & security premium received by the assessee company. He accordingly completed assessment order u/s. 143(3) of the Act making addition u/s. 68 of the Act for unexplained share capital and security premium totalling to Rs.1,10,20,000/-.
Aggrieved, the assessee preferred appeal before the ld. CIT(A) only challenging the impugned addition made u/s. 68 of the Act at Rs. 1,10,20,000/-. During the appellate proceedings the ld. CIT(A) issued notice of hearing thrice on 25.07.2018, 20.08.2018 and finally on 29.08.2018. But on such appointed dates neither any one attended nor any submission in support of its claim/grounds was filed before him. The assessee remained absent on the said dates of hearing. Therefore, the ld. CIT(A) passed ex parte order respectfully following the judgment of the Hon’ble Supreme Court in the case of H.M Esufali H.M Abdulali (1973) 90 ITR 271 (SC) dismissing the appeal of assessee.
Aggrieved, the assessee is now in appeal before this Tribunal challenging the impugned addition made u/s. 68 of the Act at Rs. 1,10,20,000/-. Apart from filing appeal, the assessee had made no further
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efforts to file any other documentary evidence or paper book and written submissions in support of its claim.
Nobody has appeared on behalf of the assessee. On the other hand, the ld. DR vehemently argued supporting the orders of lower authorities and prayed for confirming the order of ld. CIT(A).
We have heard the ld. Departmental Representative and perused the material placed on record before us. The assessee has challenged the finding of the ld. CIT(A) confirming the addition made u/s. 68 of the Act at Rs. 1,10,20,000/- by the ld.AO for unexplained cash credits of share capital and share premium received during the year. We notice that the assessee company had offered Nil income for the AY 2012-13. The assessee company has been able to procure share capital at Rs. 5,41,000/- and share premium on this share capital at Rs. 1,04,79,000/- totalling to Rs.1,10,21,110/- It certainly creates doubt about the genuineness of the alleged transaction as to how such company with no asset base and poor financials has been able to procure share capital/share premium totalling to Rs.1,10,20,000/-. When the case of the assessee was selected for scrutiny nobody has appeared either before the ld.AO, ld. CIT(A) even before us. The assessee failed to produce the alleged parties who had subscribed to the equity shares of the assessee company. The assessee was asked to explain the cash credits received by it during the year. The assessee failed to file necessary details to explain the source of alleged cash credit and also unable to prove identity, creditworthiness of the cash creditors as well as genuineness of the transaction. The assessee company has miserably failed to explain the source of alleged cash credit. If the assessee had sufficient details to explain the alleged sum, it could have certainly filed those details at any stage. Consistently escaping from appearing/producing the alleged parties before the ld. AO and the appellate 4. ITA No 2492/Kol/2018 AY 2012-13 M/s. JSM Properties P.Ltd
authority(ld.CIT-A) indicates that the assessee has no plausible explanation to explain the source of alleged sum of share capital and security premium and, therefore, the provisions of section 68 of the Act have rightly been invoked by ld. AO and alleged sum is rightly treated as the unaccounted income of assessee, which has been routed in the books through bogus/accommodation entry in the form of share capital and security premium. Therefore, under these facts and circumstances, we find no infirmity in the finding of the ld. CIT(A) confirming the addition of Rs.1,10,20,000/- made u/s. 68 of the Act. Thus, all the grounds of appeal raised by the assessee are dismissed. प�रणामत: �नधा�रती क� अपील खा�रज क� जाती है। 11. In the result, the appeal of the assessee is dismissed. आदेश खुले �यायपीठ म� �दनांक 29 -11-2022 को उ�घो�षत। Sd/- Sd/- (SONJOYSARMA) (MANISHBORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated :29 -11-2022 **PP/SPS आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1.अपीलाथ�/Appellant/: M/s.JSM Properties Pvt. Ltd/ 7/1A Grant Lane, 4th Fl.,Room No.4K, Kolkata-700 001 2. ��यथ�/Respondent/: Income Tax Officer, Ward 1(2), Kolkata Aaykar Bhawan, P-7 Chowringhee Sq., Kolkata-700 069. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण कोलकाता / DR, ITAT, Kolkata 6.गाड�फाइल/Guardfile. By order/आदेश से, /True Copy/ Assistant Registrar ITAT, Kolkata
ITA No 2492/Kol/2018 AY 2012-13 M/s. JSM Properties P.Ltd