M/S. RADHARANI TRADECOM PVT. LTD., ,KOLKATA vs. ITO, WARD - 2(1), KOLKATA

This appeal filed by the assessee is directed against the order of Ld. CIT(A) – 1, Kolkata dated 31.08.2018 passed ex-parte whereby he dismissed the appeal of the assessee for non-prosecution.

The assessee in the present case is a company which is engaged in the business of trading and investment in equity shares. The return of income for the year under consideration was filed by it on 29.09.2012 declaring a total income of Rs. 1,318/-. During the course of assessment proceedings, the claim of the assessee of having received share capital and share premium aggregating to Rs. 1,41,50,000/- was examined by the AO. During the course of the said examination, he issued notices u/s 131 of the shareholders. None, however, appeared before the AO in response to the said notices. The AO, therefore, required the assessee to produce all the shareholders along with the relevant documentary evidence for examination. The 2 M/s. Radharani Tradecom Pvt. Ltd. Assessment Year: 2012-13 assessee however failed to comply with the said requirements. The AO accordingly treated the entire amount of share capital and share premium received by the assessee during the year under consideration as unexplained cash credits and addition of Rs. 1,41,50,000/- was made by him to the total income of the assessee u/s 68 in the assessment completed vide order dated 09.03.2015 passed u/s 143(3) of the Act.

Against the order passed by the AO under section 143(3), the assessee filed an appeal before the Ld. CIT(A) and since there was no satisfactory compliance on the part of the assessee to the notices issued by him fixing the said appeal for hearing from time to time, the Ld. CIT(A) dismissed the appeal of the assessee for non-prosecution vide his appellate order dated 31.08.2018 passed ex-parte. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by the learned counsel for the assessee, the notices stated to be issued by the Ld. CIT(A) fixing the appeal of the assessee for hearings on three different dates were never received by the assessee and the assessee, therefore, could not comply with the same. He has also submitted that even there was no sufficient opportunity given by the AO during the course of assessment proceedings to produce the shareholders along with the relevant documentary evidence for examination and the entire amount of share capital and share premium was treated by him

In the result, the appeal of the assessee is treated as allowed for statistical purpose. Order Pronounced in the Open Court on 15th March, 2019.