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Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA
Before: Shri S.S, Godara
आदेश /O R D E R This assessee’s appeal for assessment year 2011-12, arises against the Commissioner of Income-tax (Appeals)-Burdwan’s order dated 13.02.2019 passed in case No.101/CIT(A)/BWN/ITO, Wd-1(1), Bwn/2016-17, involving proceedings u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.
The assessee sole substantive grievance canvassed in the course of hearing before me is that both the lower authorities have erred in law and on facts in treating share capital of ₹30,00,000/- in case of M/s Falcon Securities Pvt. Ltd. as lacking genuineness / creditworthiness and liable to be added as unexplained cash credits u/s. 68 of the Act. Suffice to say and without going deeper into merits of the issue, I find that although lower authorities have held the foregoing entity to be a non-genuine one, M/s Astha Rice Mill (P) Ltd. Vs. ITO Wd-1(1), BWN Page 2 the clinching fact that emerges from the case records is that said investor party had been duly served during the course of assessment itself u/s. 131 of the Act. Learned departmental representative fails to rebut that once the said investor party stood duly served u/s. 131 of the Act, it was for the Assessing Officer to proceed for necessary factual verification rather than drawing adverse inference against the taxpayer as well as the investor. Both the lower authorizes have erred in adding the impugned addition of ₹30,00,000/- share capital as unexplained cash credits therefore since the above stated investor was never asked to prove genuineness / creditworthiness of the share capital in issue. The same is directed to be deleted. No other ground has been raised before me.