RADIX DEALCOM PVT. LTD.,KOLKATA vs. ITO, WARD - 4(1), KOLKATA , KOLKATA

This assessee’s appeal for assessment year 2014-15 arises against the CIT(A)-2, Kolkata’s order dated 09.01.2018 passed in case no. 10762/CIT(A)-2/16-17, involving proceeding u/s 144 of the Income Tax Act, 1961 (in short the ‘Act’). Heard both the parties. Case file perused.

The assessee’s sole substantive grievance raised in instant appeal challenges both the lower authorities’ action making unexplained investments addition amounting to Rs. 5,85,00,000/- during the course of assessment as affirmed in lower appellate proceedings. We notice at the outset that both the lower proceedings have been finalized ex parte against the assessee u/s 144 of the Act. The assessee did not appear in lower appellate proceedings as well.

Learned counsel for the assessee files before us its balance sheet as on 31.03.2014, P & L A/c as well as notes to accounts. Page 6 of the Paper Book states that assessee’s investments in mutual funds as on 31.03.2014 to be Rs. 5.85 crores in issue and opening balance thereof is Rs. 4.5 crores as carried forward from 31.03.2013. His case therefore is that both the lower authorities have ignored the most vital fact of the impugned investment to the tune of Rs. 4.5 crores as not to have been made in the relevant previous year. The Revenue on the other hand strongly supports both the lower authorities action invoking the impugned addition.

We have given our thoughtful consideration to the rival contentions. It emerges at the outset that neither the Assessing Officer nor CIT(A) have examined the assessee’s balance sheet / other details before making the impugned addition in its hands. The fact also remains that the assessee had chosen not to appear either before Assessing Officer or the CIT(A). We therefore deem it appropriate that the instant sole issue needs to be re- adjudicated as per law subject to payment of cost from the tax payer in department’s favour to the tune of Rs. 5000/-. The Assessing Officer shall finalize the consequential proceedings as per law after affording adequate opportunity of hearing to assessee.

The assessee’s appeal is allowed for statistical purposes in above terms.