RATNASAGAR HERBALS(P) LTD.,KOLKATA vs. DCIT, CIR-8(2)KOL., KOLKATA

The assessee has raised two substantive grounds in the instant appeal seeking to reverse both the lower authorities’ action adding unsecured loans of Rs.77.90 lakhs to be unexplained cash credits as well as interests upon paid in the relevant previous year to the tune of Rs.13,01,547/- as unexplained expenditure, made in the course of assessment and affirmed during lower appellate proceedings. We notice at the outset that Ld.CIT(A) has proceeded to decide the assessee’s appeal as per its written submissions. He holds the impugned loans to be lacking genuineness and creditworthiness of the creditors in question namely M/s Technika Softward (P.) Ltd., Essman Impex (P) Ltd., Orientation Academic (P.) Ltd. The taxpayer appears to have filed all the relevant details including income tax returns, accounts confirmation, bank statement, company master data and Year: 2012-13] enrolment certificate of the said three parties; both in the assessment as well as lower appellate proceedings. The same have not been considered in detail in any of the two proceedings. We therefore deem it appropriate in these peculiar facts and circumstances that larger interest of justice would be served in case the CIT(A) decides the entire issue once again after affording three effective opportunities to the taxpayer. We make it clear that assessee’s failure in not completing its arguments during the said specified number of opportunities would amount to vacation of our instant remand direction.

This assessee’s appeal is allowed for statistical purposes in above terms. Order pronounced in the open court on 26.10.2018.