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Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA
Before: Sri P.M. Jagtap, Vice- & Sri S.S. Viswanethra Ravi]
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘D’ BENCH, KOLKATA [Before Sri P.M. Jagtap, Vice-President & Sri S.S. Viswanethra Ravi, Judicial Member] Assessment Year: 2012-13 M/s. Shreepati Capital and Finance Pvt. Ltd............................…………………….…….…..............…...Appellant Raj Bhavna & Associates, Chartered Accountants 21, Hemant Basu Sarani 5th Floor Room No. 507 Kolkata – 700 001 [PAN : AABCV 0486 D] Income Tax Officer, Ward-7(2), Kolkata…...........................................……...……………………..…. Respondent Appearances by: Shri Miraj D. Shah, A/R, appeared on behalf of the assessee. Shri Shankar Halder, JCIT, Sr. DR appearing on behalf of the Revenue. Date of concluding the hearing : March 4th, 2019 Date of pronouncing the order : March 27th , 2019 O R D E R Per S.S. Viswanethra Ravi, JM :-
This is an appeal filed by the assessee directed against the order of the ld. Commissioner of Income Tax (Appeals)-3, Kolkata, (hereinafter the ‘ld. CIT (A)’), dt. 22/03/2017, passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), relating to the Assessment Year 2012-13, wherein he confirmed the order of the Assessing Officer ex-parte the assessee.
Heard both parties and perused the materials available on record.
The contention of the ld. A/R was that the Assessing Officer failed to conduct proceedings u/s 131 of the Act and referred to page no. 4 of the assessment order. It is noted that the Assessing Officer, dissatisfied with the conduct of the assessee as well as the non-compliance of the Directors of the share subscribing companies and added an amount of Rs.3,20,50,000/- u/s 68 of the Act. Further it was submitted by the ld. A/R that there was no opportunity for the assessee to explain the of receipt of share capital with premium before the ld. CIT(A). It is noted from para 2 of the impugned order that the ld. CIT(A) issued notice to the assessee intimating the fixation of the date of hearing on 02/03/2017, for non compliance it was adjourned to 08/03/2017. According to the ld. CIT(A), Assessment Year: 2012-13 M/s. Shreepati Capital and Finance Pvt. Ltd there was non-compliance on 08/03/2017 and dismissed the grounds of appeal
raised by the assessee for non-compliance of notices on 22/03/2017. The contention of the ld. A/R was that since the issue is in respect of raising of share capital with the premium which requires, in our opinion, explanation to the satisfaction of the Assessing Officer and as we discussed above there was no occasion for the assessee to explain the same before the Assessing Officer. 3.1. This Bench of the Tribunal, under similar circumstances in the case of Kasvi Distributors Pvt. Ltd. vs. ITO in Assessment Year 2012-13, order dt. November 19th, 2018, remanded the matter to the file of the Assessing Officer. Relevant portion of the said order is reproduced hereinbelow:- “4. We have heard the arguments of both the sides and also perused the relevant material available on record. Although the learned counsel for the assessee has contended that the notice of hearing finally fixed on 30.03.2017 issued by the Ld. CIT(A) on 22.03.2017 was received by the assessee only after the date of hearing, it is observed that the assessee has failed to explain the non-compliance to the notice issued by the Ld. CIT(A) fixing the appeal for hearing initially on 22.03.2017. It is also observed that there was a similar non-compliance on the part of the assessee even during the course of assessment proceedings before the A.O. Keeping in view this casual and negligent approach of the assessee, we are of the view that one more opportunity to explain the relevant cash credits representing share capital in terms of section 68 by producing the relevant supporting documentary evidence as sought by the learned counsel for the assessee can justifiably by given only subject to imposition of a cost of Rs. 5,000/-. We accordingly set aside the impugned order passed by the Ld. CIT(A) ex-parte and restore the matter to the file of the A.O. for deciding the matter afresh after giving such opportunity to the assessee subject to a payment of cost of Rs. 5,000/- to the Income Tax Department.” 3.2. Consistent with the view taken therein, we deem it proper to remand the matter to the file of the Assessing Officer for his fresh verification. The assessee is at liberty to file evidences, if any, relating to its claims before the Assessing Officer. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.
4. In the result, appeal of the assessee is allowed for statistical purposes.
Kolkata, the 27th day of March, 2019. Sd/- Sd/- [P.M. Jagtap] [S.S. Viswanethra Ravi] Vice President Judicial Member Dated : 27.03.2019 {SC SPS} Assessment Year: 2012-13 M/s. Shreepati Capital and Finance Pvt. Ltd Copy of the order forwarded to: 1. M/s. Shreepati Capital and Finance Pvt. Ltd Raj Bhavna & Associates, Chartered Accountants 21, Hemant Basu Sarani 5th Floor Room No. 507 Kolkata – 700 001 2. Income Tax Officer, Ward-7(2), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata.