Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “B” BENCH: KOLKATA
Before: Shri J. Sudhakar Reddy & Shri S.S. Viswanethra Ravi
ORDER Shri S.S. Viswanethra Ravi
This appeal by the Assessee is directed against the order of the Commissioner of Income Tax (Appeals), 2, Kolkata dt. 22-12- 2015 for the A.Y 2008-09.
The only issue is to be decided as to whether the CIT-A justified in confirming the addition/disallowance made u/s. 68 of the Act on account of unexplained cash credit in the facts and circumstances of the case.
After hearing both the parties, it is noted that the CIT under 263 proceedings directed the AO to conduct the assessment proceedings as detailed therein of para 2 of the assessment order and to make fresh assessment. But, in response to notice issued u/s. 131 no directors/the shareholders of the assesse company could not be produced before the AO. Before us the ld. AR submits that there was no opportunity before the AO to produce the details of all the directors/ the shareholders of the assessee company before the AO. Therefore, taking into considerations the submissions of the ld.AR & Ms. Suvidha Barter Pvt. Ltd. ld. DR, facts and circumstances of the case and in the interest of justice, we deem it fit and proper to remand the matter to the file of the AO to conduct inquiries as set out hereunder:-
i) Examine the genuineness and source of share capital, not on a test check basis, but m respect of each and every shareholder by conducting independent enquiry not through the assessee. The bank account of the entire period should be examined in the course of verification to find out the money trail of the share capital. ii) Further the A. 0. should examine the directions as well as examine the circumstances which necessitated the change in directorship if applicable. He should examine them on oath to verify their credentials as director and reach a logical conclusion regarding the controlling interest. iii) The A. O. is directed examine the source of realization from the liquidation of assets shown in the balance sheet after the change of Directors, if any."
4. In view of the above, grounds raised by the asessee are allowed for statistical purposes.”
In view of above, we deem it fit and proper to remand the issues to the file of AO and to pass a fresh order as per law, after giving the assesse adequate opportunity of hearing to assessee. The assesse is at liberty to file necessary evidences/explanation in support of its claim/contention. Grounds raised by the assesse are allowed for statistical purpose.
In the result, the appeal of assesse is allowed for statistical purposes Order pronounced in the open court on 05-09-2018