M/S BALAKA VINIMOY PVT. LTD.,KOLKATA vs. ITO, WARD-5(4),KOLKATA, KOLKATA

The assessee’s sole substantive grievance canvassed in the instant appeal challenges correctness of both the lower authorities’ action M/s Balaka Vinimoy Pvt. Ltd. Vs. ITO Wd-5(4), Kol. Page 2 treating its share application / premium amount of ₹13,94,00,000/- as unexplained cash credits added u/s 68 of the Act. it emerges at the outset that the CIT(A)’s lower appellate order has been passed ex parte whilst affirming the Assessing Officer’s action making the addition in issue. The impugned proceedings appear to have arisen from the CIT’s revision directions dated 28.03.2013 revising the earlier regular assessment framed by the Assessing Officer on 30.04.2010 determining total income at ₹26,340/- u/s. 147 r.w.s. 143(3) of the Act.

Learned departmental representative vehemently contended during the course of hearing that the assessee has availed accommodation entries from the investor parties which have not put in appearance before lower authorities and therefore, the impugned share application / premium amount has rightly been added as unexplained cash credits. He invited our attention to the Assessing Officer’s consequential assessment order dated 26.03.2014 to this effect. It is further submitted that the assessee had also not put in appearance before the CIT(A) despite numerous opportunities. The assessee’s case on the other hand is that the CIT’s direction issued u/s. 263 of the Act revising the earlier assessment had made it clear that the Assessing Officer had to examine genuineness and source of share capital; not on test check basis but in respect of all shareholders by conducting independent enquiries not through the taxpayer. We find that neither of the lower authority has complied with the said clinching aspect of the issue despite the fact that that the assessee had very well filed relevant documentary evidence raised from the very beginning. The Assessing Officer’s consequential assessment order does not take into consideration the same whilst making the impugned addition. We therefore deem it appropriate to restore the instant sole issue back to the M/s Balaka Vinimoy Pvt. Ltd. Vs. ITO Wd-5(4), Kol. Page 3 Assessing Officer for afresh de novo assessment as per law in terms with CIT’s original revision directions (supra).