M/S. DARSHAN CONSULTANTS PVT. LTD.,KOLKATA vs. P-7, CHOWRINGHEE SQUARE, KOLKATA

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ITA 1947/KOL/2017Status: DisposedITAT Kolkata31 December 2018AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned order and remitted the matter back to the Assessing Officer for a fresh adjudication. This was done to ensure tax is assessed on the right person and income, considering the new information.

What were the facts?

A search was conducted on the assessee company, and its director's statement revealed it was a shell company used for providing accommodation entries. This new development occurred after the initial assessment.

What were the issues?

Whether a fresh assessment is required based on post-assessment search and director's admission of the company being a shell entity.

Which sections of the Income-tax Act were involved?

Section 132(4),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B”, BENCH KOLKATA

Before: SHRI A.T. VARKEY, JM & DR. A.L.SAINI, AM

Hearing: 26/12/2018Pronounced: 31/12/2018

आदेश / O R D E R

Per Dr.Arjun Lal Saini, AM:

1.

The captioned appeal filed by the Assessee pertaining to assessment year 2012-13, is directed against an order passed by the learned Commissioner of Income Tax (Appeals)-16, Kolkata (in short the ld. CIT(A)] in appeal no. 830/CIT(A)-16/Kol/2015-16/W-8(2), which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 ( in short the Act) dated 17.03.2015.

M/s Darshan Consultants Pvt. Ltd. A.Y.2012-13 2. At the outset the ld .DR brought to our knowledge that a new development has taken place in the case of assessee. As per the ld. DR, after the assessment was framed against the assessee, a search was carried out on 03.01.2018 wherein the statement of director of this assessee company was also recorded u/s 132(4) of the Act wherein for question no. 9 the director has accepted that the assessee company which is seen at serial no. 6 of the table given under answer to question no. 9 that it was controlled and managed by him and that the assessee company is a paper / shell company formed with the sole purpose of providing accommodation entries in the form of bogus share premium / bogus unsecured loans to different beneficiaries. In the light of the aforesaid development, in the interest of justice and fair play, the assessment made, need to be framed afresh. The ld. A/R could not controvert the fact of the search conducted on the assessee on 03.01.2018 and the statement of the director of the assessee company as recorded above. In the light of the aforesaid new development, and keeping in mind, the settled position of law that the tax has to be assessed on the right person, right income and in the right assessment year, we set aside the impugned order and remit the matter back to the file of the Assessing Officer for de novo adjudication in the light of the new development after the search which happened on 03.01.2018.

3.

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

Order pronounced in the open court on this 31 / 12/2018.

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