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Facts
The assessee filed an appeal against the CIT(A)'s order for AY 2015-16 concerning investments in unlisted equities. The assessee failed to appear before the AO or provide details regarding the genuineness of transactions, creditworthiness, or source of funds, which led to an ex-parte order.
Held
The Tribunal restored the issues to the file of the AO for readjudication on merits, ensuring the assessee is given an adequate opportunity to be heard. The assessee is directed to produce the directors of the selling companies to substantiate identity, creditworthiness, and source of funds for the transactions.
Key Issues
Verification of genuineness, creditworthiness, and source of funds for investments made in unlisted equities by the assessee.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI GEORGE MATHAN, JM & SHRI RATNESH NANDAN SAHAY, AM
(निि ारण वर्ा / Assessment Year :2015-2016) Sukun Vincom Private Limited Vs. ITO, Ward-1(2), Ranchi 9, Lal Bazar Street, 3rd Floor, Kolkata, West Bengal-700001 स्थायी लेखा सं./PAN No. : AAPCS 2490 E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्ाारिती की ओर से /Assessee by : None राजस्व की ओर से /Revenue by : Shri Rajib Jain, CIT-DR सुनवाई की तारीख / Date of Hearing : 09/10/2025 घोषणा की तारीख/Date of Pronouncement : 09/10/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order passed by the ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 15.12.2023 for the assessment year 2015-2016.
None appeared on behalf of the assessee. Shri Rajib Jain, ld. CIT- DR appeared on behalf of the revenue.
We have considered the submissions of the ld. CIT-DR. Admittedly, the assessee has not represented its case before the ld. the AO nor provided any details with regard to its claim. In absence of genuineness of transaction, creditworthiness and verification of source of funds, the could not verify the investments made in Unlisted Equities during the period under consideration. As mentioned earlier, these are basically ex-parte order before the AO. This being so, in the interest of justice and so as to grant the assessee opportunity to substantiate its case, the issues in this appeal are restored to the file of the ld. AO for readjudication on merits after granting the assessee adequate opportunity of being heard. The assessee is also directed to produce the directors of the company (sellers) to substantiate the identity, creditworthiness and source of funds and transactions made on unlisted equities.
In the result, appeal of the assessee is partly allowed for statistical purposes.
Order dictated and pronounced in the open court on 09/10/2025.