M/S NILANJANA TIE - UP PVT LTD,KOLKATA vs. I.T.O.,WARD-1(2), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘(A)’, KOLKATA [Before Shri P.M. Jagtap, Vice President (KZ) & Shri S.S. Godara, JM] Assessment Year: 2008-09 M/s. Nilanjana Tie Up Pvt. Ltd.......................................……………………….....................Appellant P-41, Princep Street, Kolkata – 700 007. [PAN: AACCN 6275 F] Vs ITO, Ward 1(2), Kolkata...................…………………………………………………...............Respondent P-7, Chowringhee Square, Kolkata – 700 069. Appearances by: Shri Soumitra Choudhury, Advocate & Shri Joydeep Chakraborty, B.Sc. L.L.B. appearing on behalf of the Assessee. Shri Jayanta Khanra, JCIT appearing on behalf of the Revenue. Date of concluding the hearing : December 13, 2019 Date of pronouncing the order : December 13, 2019 ORDER PER P.M. JAGTAP, VICE-PRESIDENT (KZ & HZ)

This appeal filed by the assessee is directed against the order of Ld. CIT(A) – 14, Kolkata dated 17.02.2017 passed ex-parte whereby he dismissed the appeal of the assessee for non-prosecution.

M/s. Nilanjana Tie Up Pvt. Ltd. the issue in respect of share capital and share premium aggregating to Rs. 13.09 crores in terms of section 68 by conducting the necessary enquiries and verifications. As per the direction of the Ld. CIT, the assessee company was required by the AO to produce the directors of the share holding companies for examination / verification along with the necessary details and documents. As noted by the AO in the assessment order, the assessee company however failed to comply with the said requirement and resultantly the necessary enquiry and verification as directed by the Ld. CIT in the order u/s 263 could not be carried out. The AO accordingly treated the entire share capital and share premium aggregating to Rs. 13.09 crores received by the assessee during the year under consideration as unexplained cash credits and addition to that extent was made by him to the total income of the assessee u/s 68 in the assessment completed u/s 143(3)/263 of the Act vide an order dated 26.03.2014.

M/s. Nilanjana Tie Up Pvt. Ltd. the non-compliance before the Ld. CIT(A) on the ground of the non- receipt of the notices of hearing stated to be sent by the office of the Ld. CIT(A), the ld. Counsel for the assessee has submitted that proper and sufficient opportunity was not afforded even by the AO to the assessee company during the course of assessment proceedings to produce the directors of the share holding companies along with the relevant details and documents so as to comply with the directions given by the Ld. CIT in the order passed u/s 263. He has submitted that the assessee company is in a position to produce the directors of the share holding companies along with the relevant details and documents for the verification / examination of the AO and urged that one opportunity may be given to the assessee company to do so by sending the matter back to the AO. The ld. DR has not raised any objection for sending the matter back to the AO for proper examination / verification. The impugned order passed by the Ld. CIT(A) ex-parte dismissing the appeal of the assessee for non- prosecution is accordingly set aside and the matter is restored to the file of the AO for deciding the same afresh after giving one more opportunity to the assessee to produce the directors of the concerned share holding companies along with the relevant details and documents for examination / verification. As undertaken by the learned counsel for the assessee, the assessee shall make due compliance before the AO and shall extend all the cooperation in order to enable the AO to complete the assessment afresh expeditiously.

M/s. Nilanjana Tie Up Pvt. Ltd.