M/S DIANA TRADECOM PVT. LTD.,KOLKATA vs. ITO, WARD-7(3), KOLKATA, KOLKATA

This appeal by the assessee against the order dated 29.08.2016 passed by CIT(A)-16, Kolkata for AY 2008-09.

The Ld. AR submits the issue involved in this appeal is introduction of share capital. The AO treated the same as bogus under 144 proceedings. The AO without issuing notice and by violating the principles of natural justice added an amount of Rs. 3,18,00,000/- to the total income of the assessee. In the first appellate proceedings, the CIT(A) by placing reliance in the case of Rajmandir Estates Ltd. Vs PCIT-II, Kolkata dated 13.05.2016, confirmed the view of the AO. There was no opportunity for the assessee to prove its onus by furnishing all the relevant documents in connection with the share capital raised and urged to remand the matter to the file of the AO for conducting inquiries independently in respect of share capital subscribing companies. The Ld.DR did not controvert the same. [Assessment Year: 2008-09]

Heard both and perused the material available on record. We find that there was no opportunity for the assessee in the assessment proceedings and the CIT(A) by placing reliance on the decision of this Tribunal in the case of Rajmandir Estates Ltd. Vs PCIT-II, Kolkata (supra) confirmed the view taken by the AO. Taking into consideration, the submissions of Ld.AR & Ld.DR and in the facts and circumstances of the case, we deem it proper to remand the matter to the file of the AO to conduct inquiries as set out hereunder:-

In view of the above, grounds raised by the assessee are allowed for statistical purposes.

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