M/S. MANGALDHAM COMMODEAL PVT. LTD., ,KOLKATA vs. ITO, WARD - 4(2) , KOLKATA

The assessee in the present case is a Company, which filed its return of income for the year under consideration declaring its total income at NIL. During the course of assessment proceedings, summons under section 131 were issued by the Assessing Officer to the concerned shareholders, who contributed the share capital of the assessee to the tune of Rs.2,66,00,000/- including share premium of Rs.2,54,49,000/-. There was, however, no response to the said summons and some of the Assessment Year: 2012-2013 M/s. Mangaldham Commodeal Pvt. Limited summons were also returned undelivered by the Postal Authorities. When this position was confronted by the Assessing Officer to the assessee- company, the assesese-company also failed to produce the concerned shareholders for examination before the Assessing Officer. The Assessing Officer, therefore, treated the entire share capital of Rs.2,66,00,000/- including share premium as unexplained cash credit and made addition to that extent to the total income of the assessee in the assessment completed under section 143(3) vide an order dated 28.03.2015.

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) 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(Appeals) dismissed the appeal of the assessee vide his appellate order dated 08.10.2018 passed ex-parte. Aggrieved by the order of the ld. CIT(Appeals), 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. Although the ld. Counsel for the assessee has submitted that the assessee-company now is in a position to produce the concerned shareholders for examination before the Assessing Officer and has sought one opportunity by sending the matter back to the Assessing Officer, we are of the view that such opportunity can justifiably be given to the assessee only subject to payment of cost of Rs.5,000/- keeping in view the casual and negligent approach of the assessee in complying with the notices issued by the Assessing Officer and ld. CIT(Appeals). We accordingly set aside the impugned order of the ld. CIT(Appeals) passed ex-parte and restore the matter to the file of the Assessing Officer for deciding the same afresh after giving one more opportunity to the assessee to produce the concerned shareholders for Assessment Year: 2012-2013 M/s. Mangaldham Commodeal Pvt. Limited examination along with necessary supporting documentary evidence subject to payment of cost of Rs.5,000/- to the Income Tax Department.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on February 15, 2019.