BHOLEBABA JUTE PVT. LTD,KOLKATA vs. DCIT, CC-X(PRESENTLY ITO WARD-10(10/KOL), KOLKATA

Heard both the parties and perused the material available on record. The contention of the Ld.AR was that the AO in the remand proceedings, no summons u/s 131 of the Act were issued to the share subscribing companies and placed on record the note sheet of AO wherein he pointed out that there was no proceedings as such before the AO between 28.03.2014 and 20.03.2017 and argued the finding made by the AO in its Remand Report which is reproduced by the CIT(A) at para 4.6 is incorrect and sought to remand the matter to AO for his fresh verification. Ld.DR vehemently opposed the submissions of the Ld.AR in respect of non recording of remand proceedings and argued that there was no compliance on behalf of the assessee before the AO in remand proceedings but, however, reported no objection in respect of submissions remanding the matter to the file of the AO with a specific request directing the assessee to comply summons u/s 131 of the Act. We note that the issue is of raising share capital and premium, in our opinion, thereon requires assistance of the assessee as well as the share subscribing companies. On perusal of the record, we find no such exercise as required by the law was done by the AO. Therefore, taking into consideration the submissions of the Ld.AR & Ld.DR and facts and circumstances of the case, we deem it proper to remand the matter to the file of the AO for his fresh verification in respect of details of share subscribing companies. We also direct the assessee to put in compliance in such proceedings without fail. Thus, grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.