MAYANK INFOTRADE PVT. LTD.,HOWRAH vs. I.T.O.,WARD-13(3), KOLKATA

This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-5, Kolkata [hereinafter referred to as ‘Ld. CIT(A)’] dated 21.10.2019 for the assessment year 2012-13.

At the time of hearing, when the case was called for hearing today, neither the assessee nor his authorized representative appeared to attend the hearing nor any adjournment application was filed seeking adjournment. We observe from the file that notice issue to the assessee was returned unserved with remarks ‘not known on the

We have heard Ld. D.R. and also perused the material on record including the impugned order of Ld. CIT(A) and as well as AO. We observe that the assessee has issued shares at face value of Rs. 10/- each at a premium of 190 and thus collected Rs. 1,87,25,000/- from five parties. We note that during the assessment proceedings, the assessee has not filed any submissions before the AO and thus AO passed assessment order on the basis of information/details available before him by holding that transactions of share capital and share premium remained unexplained as the identities , creditworthiness of the investors and genuineness of the transactions could not be verified and finally added the same to the income of the assessee u/s 68 of the Act as unexplained cash credit. Similarly, before the Ld. CIT(A) also the assessee could not prove these transactions and its appeal was dismissed by the first appellate authority. Before us also , the assesse did not file any evidences to prove these transactions. Under these circumstances, we are in concurrence with the conclusion drawn by the Ld. CIT(A) that the money was received from shell companies which are operating under an organized manner in the market and accordingly, the appeal of the assessee is dismissed by upholding the order of Ld. CIT(A).

In the result, the appeal of the assessee is dismissed.