M/S. RADHWA TRADING PVT. LTD.,KOLKATA vs. PR.CIT - 3, KOLKATA, KOLKATA

This appeal filed by the assessee is against the order of Pr. CIT-3, Kolkata dated 03.03.2017 for A.Y. 2012-13.

At the time of hearing of the case, i.e. on 28.04.2022, neither anybody appeared on behalf of the assessee nor has filed application seeking adjournment despite the fact that on last occasion i.e. on 15.02.2018, this Tribunal dismiss the appeal of the assessee due to non-appearance of the assessee. However, the assessee had filed M.A. No. 31/Kol/2021 for restoration of the appeal of the assessee and the Tribunal recall the order dated 15.02.2018 and restored the appeal of the assessee. Again on 28.04.2022 when the case was called none appeared on behalf of the assessee nor file any adjournment petition, although the notice was affixing on the notice board of the Tribunal. It appears from the conduct of the assessee that assessee is not seriously interested in pursuing this appeal before the Tribunal. We, therefore, have no option

The ld. departmental representative vehemently argued supporting the order of ld. PCIT. We have heard rival contentions and perused the record placed before us. Through this appeal, assessee has challenged the revisionary proceeding carried out by ld. PCIT holding the assessment order dated 28.10.2014 as erroneous and prejudicial to the interest of revenue.

On going through the impugned order, we note that ld. PCIT has observed that during the year, assessee has issued 2,52,600 equity shares of Rs. 10/- each at a premium of Rs. 990/-. During the year share capital of Rs. 25,26,000/- and share premium of Rs. 25,00,74,000/- was received. Ld. PCIT observed that the alleged share capital and share premium prima facie does not look genuine as the assessee is not involved in genuine business activities. Ld. PCIT further observed that the ld. AO failed to examine the identity, genuineness and creditworthiness of the share subscribers from whom share capital and share premium has been received.

We further note that in the assessment order, ld. AO has not discussed about the said issue of the genuineness and creditworthiness and identity of the share subscribers. No documents have been filed on behalf of the assessee to indicate that the ld. AO has conducted an enquiry in light of the provisions of section 68 of the Act regarding share capital of Rs. 25,26,000/- and share premium of Rs. 25,00,74,000/-. Even in the impugned order, it is discernible that even after providing various opportunities assessee failed to appear.

We, therefore, under the given facts and circumstances of the case, are of the considered view that since the issue raised in the show cause notice u/s 263 of the Act by ld. PCIT has not been examined by the Assessing Officer in the assessment proceeding, the assessment order dated 28.10.2014 framed u/s 143(3) of the Act is erroneous so far as prejudicial to the interest of revenue and, therefore, find no infirmity

In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 06.07.2022.