BRILLANT VINCOM LLP (SUCCESSOR OF BRILLANT VINCOM PVT. LTD.,),KOLKATA vs. ITO, WARD 37(1), KOLKATA

Brief facts of the case of the assessee are that the assessee filed return of income declaring total income of Rs. -2,169/- return of income was processed u/s 143(1) and further the case was selected for scrutiny on the issue of large share premium received during the year. The assessment was completed by addition of Rs. 31,100/- u/s 14A determining the total income of Rs. 28,930/-. Further during the revisionary proceedings u/s 263 of the Act, it was observed that the issue of loss from sale of shares of Rs. 25,70,300/- . A show cause notice was sent to the assessee and order passed u/s 143(3) for AY 2015-15 has been held to be erroneous as it is prejudicial to the interest of the revenue. The assessee has been noticed with a direction to appear and explain the above case lacuna in the said order with supporting documentary evidences but neither the assessee nor any AR of the assessee appeared. Since the assessee in spite of getting several opportunities did not submit anything opposing to the initiation to the proceedings u/s 263 of the Act discrepancy pointed out has been explained. The assessee has further given an opportunity by issuing notice u/s 142(1) to submit details but there was no response, as a result of which assessment was completed on the material available on record u/s 143(3) read with Section 263 of the Act and loss of Rs. 25,70,300/- from sale of shares is disallowed and added to the total income of the assessee. Further an amount of Rs. 4,08,75,800/- has also been treated as unexplained cash credit u/s 68 of the Act.

Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as there was no response from the side of the assessee.

The Ld. D.R though supports the impugned order but did not raise any objection in remitting the appeal back to the file of AO as the order passed by the AO u/s 144 of the Act.

Upon hearing the submission of the counsel of the respective parties, we have perused the order of AO and we find that assessment was completed in pursuant to the order passed u/s 263 of the Act when there was no compliance on behalf of the assessee. Before the Ld. CIT(A) also there was no response. The Ld. A.R brought balance sheet, profit and loss account and other documentary evidences before us.

Going over the submission made by the assessee and order passed by the lower authorities, for the interest of justice, we are inclined to remit the appeal back to the file of AO with a direction to pass afresh assessment order after hearing the assessee and going over the documents filed by the assessee.