M/S. SWARNALAXMI DEALCOM PVT. LTD.,KOLKATA vs. I.T.O., WARD - 7(3), KOLKATA, KOLKATA

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 28.05.2024 for the AY 2012-13. 02. The only issue raised by the assessee in the grounds of appeal is against the confirmation of addition of ₹2,06,20,000/- by ld. CIT (A) as made by the ld. AO on account of share capital/ share premium being unexplained u/s 68 of the Act.
03. The ld. AR at the outset, submitted that on page no.2 at para 1 of the assessment order the ld. AO noted that the assessee appeared before the ld. ITO, Ward-12(3), Kolkata and filed the details as asked for by the ld. Assessing Officer, however, did not complied with the summons issued u/s 131 of the Act and made addition of M/s Swarnalaxmi Dealcom Pvt. Ltd; A.Y. 2012-13

₹2,06,20,000/- on account of share capital/ share premium by treating the same as unexplained cash credit. Similarly, the ld. CIT (A) in the appellate order in para 6.2.1 dealt with the submissions of the assessee that the shares were issued in lieu of investments made in other companies and therefore, Section 68 of the Act has no application where there is no involvement of any cash or money is not credited into the books of accounts of the assessee. Thereafter, the ld.
CIT (A) noted that however this contention was not raised before the ld. AO and accordingly, documents submitted by the assessee were forwarded to the ld. AO vide letter dated 25.01.2024 for remand, however, no response was received despite repeated reminders i.e.
dated 13.02.204, 29.02.2024 and 26.02.2024 and finally, the case was decided on the basis of available information. The ld. CIT (A) thereafter confirmed the addition primarily on the basis that the assessee could not produce the director of the subscribing committee before the ld. Assessing Officer. The ld. AR therefore prayed that in the interest, justice and fair play the matter may kindly be restored to the file of the ld. AO for denovo necessary verification as to the fact that whether the assessee has issued these shares in lieu of allotment of shares in other companies or not. If the plea of the assessee is correct then no addition is called for u/s 68 of the Act as it has no application.
04. The ld. DR on the other hands relied on the orders of the ld. lower authorities and submitted that assessee has failed to file any substantive evidences to prove its contention before the authorities below and therefore, the appeal of the assessee may kindly be dismissed.
05. Having heard the rival contentions and perusing the materials available on record, we find that the ld. CIT (A) in para no.6.2.1 has M/s Swarnalaxmi Dealcom Pvt. Ltd; A.Y. 2012-13

clearly noted the contention of the assessee before the appellate authority that the shares were issued on barter basis i.e. in lieu of allotment of shares in other companies. However, the ld. CIT (A) has not dealt with these contentions despite having sent the documents filed by the assessee to the ld. AO for remand which was not sent by the ld. AO despite repeated reminders. Under these facts and circumstances, we are of the view that ends of justice would be made if the appeal is restored to the file of the ld. AO with a direction to decide the same denovo after taking into account these evidences and also after allowing reasonable opportunity of being heard to the assessee.
06. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 15.01.2025. (PRADIP KUMAR CHOUBEY)
(RAJESH KUMAR)
(JUDICIAL MEMBER)
(ACCOUNTANT MEMBER)

Kolkata, Dated: 15.01.2025
Sudip Sarkar, Sr.PS
Copy of the Order forwarded to :

Sr. Private Secretary/ Asst.