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Facts
The assessee filed an appeal against a CIT(A) order for Assessment Year 2009-10, with a delay of 160 days. The primary issue on merits concerned the genuineness of share application money, stemming from an assessment order that was a consequence of a Section 263 order which the Assessing Officer allegedly failed to follow.
Held
The Tribunal condoned the 160-day delay in filing the appeal, finding the reasons in the assessee's affidavit to be plausible. The issues relating to the share application money were restored to the Assessing Officer for fresh readjudication, with liberty granted to the assessee to produce further evidence and the AO empowered to issue notices under Section 131. The assessee is to be given an adequate opportunity of being heard and provided with any adverse evidence.
Key Issues
Condonation of delay in filing the appeal; and the proper readjudication of the genuineness of share application money, especially concerning the Assessing Officer's adherence to a prior Section 263 order.
Sections Cited
263, 131
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI SANJAY AWASTHI
(निर्धारण वर्ा / Assessment Year : 2009-2010) Presidency Merchants Pvt Ltd Vs ITO Ward-9(3), Kolkata No.101, India Exchange Place Dalhousie, Writers Building, Kolkata PAN No. :AAECP 6904 B (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Soumitra Choudhury, AR रधजस्व की ओर से /Revenue by : Shri P.N.Barnwal, CIT-DR सुनवाई की तारीख / Date of Hearing : 07/05/2025 घोषणा की तारीख/Date of Pronouncement : 07/05/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 15.03.2024, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1062704762(1), for the assessment year 2009-2010.
Shri Soumitra Choudhury, AR appeared on behalf of the assessee. Shri P.N.Barnwal, CIT-DR appeared on behalf of the revenue.
On perusal of the appeal record, we find that the appeal of the assessee delayed by 160 days. In this regard, the assessee has filed an application supported by an affidavit for condonation of delay stating therein sufficient and plausible reasons for delay and the reasons are not found to be false. Accordingly, the delay of 160 days in filing the present appeal by the assessee is hereby condoned and the appeal is disposed off accordingly.
4. It was submitted by the ld. AR that the issue on merits was with regard to share application money. It was the submission that the impugned assessment order was a consequence of an order passed u/s.263 of the Act. It was the submission that the order u/s.263 of the Act has not been challenged. It was the submission that the Assessing Officer has not followed the order of the ld. CIT, Kolkata-3 passed u/s.263 of the Act. It was the submission that he had no objection if the issues in the appeal are restored to the file of Assessing Officer for readjudication.
The assessee has also filed detailed paper book containing names of the various share applicants and their details. The paper book contains nearly 754 pages. A perusal of the paper book filed by the assessee shows that a lot of paper work in regard to various share applicants have been produced. There is no evidence of any of the directors of the share holding company having been produced before the AO. This being so, considering the submissions of the ld. CIT-DR that the genuineness has not been proved, the issues in this appeal are restored to the file of Assessing Officer for readjudication afresh. It must be mentioned here that the assessee has not represented before the ld. CIT(A). A liberty is granted to the assessee to produce all such evidence as required to substantiate its claim of share application money. The Assessing Officer may also issue notices u/s.131 of the Act to compel appearances of the directors/shareholders of the share companies.
Here it may also be mentioned that should the Assessing Officer give any evidence against the assessee, copy of the same shall be