M/S RAJDHANI ENCLAVE PVT. LTD.,KOLKATA vs. ITO, WD-4(2), KOLKATA, KOLKATA

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ITA 1364/KOL/2016Status: DisposedITAT Kolkata24 October 2018AY 2008-092 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the AO had not conducted the inquiries as directed by the CIT. Therefore, the matter was remanded to the AO to conduct the necessary inquiries and complete the assessment afresh.

What were the facts?

The assessee's appeal is against an order passed by the CIT(A) for AY 2008-09. The CIT had directed the AO to conduct inquiries regarding share subscribing companies under Section 263 proceedings, but the AO allegedly failed to do so.

What were the issues?

Whether the AO conducted the inquiries as directed by the CIT under Section 263 proceedings. The adequacy of the AO's inquiry in relation to share subscribing companies.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “C”, KOLKATA

Hearing: 04.10.2018Pronounced: 24.10.2018

ORDER

PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER This appeal by the assessee against the order dated 15.02.2016 passed by CIT(A)-2, Kolkata for AY 2008-09.

2.

Ld.CIT under 263 proceedings of the Income Tax Act, 1961 (in short “Act”) directed the AO to conduct inquiries in respect of share subscribing companies and the AO fail to conduct such inquiries as per the direction given u/s 263 proceedings. Ld.AR prayed to remand to the file of AO to conduct assessment as per the directions of Ld.CIT. Ld.DR opposed the same and submitted that in accordance with the directions u/s 263 proceedings, the AO issued summons and there was no compliance till the passing of order u/s 143(3) of the Act. Ld. DR prayed to dismiss the appeal of the assessee.

3.

Heard rival submissions and perused the material available on record. It is noted from the order dated 28.03.2013 wherein Ld. CIT in her order passed u/s 263 directed the AO to conduct certain inquiries, by placing reliance on judicial decisions. The said order is placed on record and we find that the directions placed at page No.220 of Paper Book. On perusal of the order passed by the AO,

1.

(ASSESSMENT YEAR-2008-09) we find no such inquiry was conducted by the AO, except the issuance of notice and serving the same on share subscribing company. In view of the discussion made herein above, facts and circumstances of the case and in the interests of justice, we deem it proper to remand the matter to the file of AO to conduct inquiries as set in the order passed u/s 263 of the Act by the Ld.CIT and complete the assessment denovo.

4.

In view of the above, grounds raised by the assessee are allowed for statistical purposes. Under identical circumstances, similar view was taken by the Kolkata Benches of ITAT in all such cases. Some of these cases are (i) in the case of M/s Star Griha (P.) Ltd. vs ITO dated 15.12.2017, (ii) M/s. Dhenu Merchandise Pvt.Ltd. vs ITO in ITA No.1745/Kol/2017 dated 26.09.2018. Consistent with the view taken in these cases, the amounts set aside to the AO for fresh adjudication in accordance with law.

5.

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

Order pronounced in the open court on 24.10.2018.

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