GANAN MERCANTILE PVT. LTD.,KOLKATA vs. ITO, WARD - 6(2), KOLKATA

Heard both parties and perused material available on record. The substantial issue raised in this appeal is relating to confirmation of share capital raised by the assessee and for non-compliance of notices/summons by the directors, Principal officer of the assessee and shareholder companies, the AO added an amount of Rs.3 crore on account of cash credit u/s 68 of the Act. It is noted from the record that the assessee remained absent before the First Appellate Authority. Now, the contention of the Ld.AR is that the issue is involving the share capital raised from shareholders, there was no opportunity for the assessee to furnish details of share subscribing companies prayed to remand the matter to the file of AO for his fresh verification in respect of details of shares subscribing companies. Further, he submitted that the assessee is ready to co-operate

(ASSESSMENT YEAR-2012-13) and provide all the details in respect of share capital amount. Ld.DR did not report objection. Ld.DR submits that all the share subscribing companies having no business activities and argued no purpose will be served, if it is sent to AO for his verification. Taking into consideration the submissions of Ld.AR & Ld. DR and facts and circumstances of the case, we deem it proper to remand the matter to the AO for his fresh verification in respect of details of share subscribing companies. The assessee shall co-operate in the proceedings. The assessee is liberty to file evidences, if any, in support of his contention. Thus, grounds raised by the assessee are allowed for statistical purposes.