SUBARNASHILA MERCHANTS PVT. LTD.,KOLKATA vs. ITO, WARD 2(3), KOLKATA, KOLKATA

- This assessee’s appeal for assessment year 2012-13 arises against Commissioner of Income Tax (Appeals)-1, Kolkata’s order dated 04.10.2016 passed in case No.1409/cita1/W-2(3)/2015-16, confirming Assessing Officer’s action adding its share capital / premium of ₹ 18,66,40,000/- as well as u/s 14A r.w.s Rule 8D disallowance of ₹25,902/-, in proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

It emerges at the outset that the CIT(A)’s order under challenge affirming assessment findings on both the above issues has been passed ex parte on the ground that the assessee could not appear on 28.09.2016. The Assessing Officer had framed the assessment in question on 27.03.2015 making section 68 additions and section 14A r.w. Rule 8D disallowance of unexplained share application / share Subarnashila Merchanats Pvt. Ltd. Vs. ITO Wd-2(3), Kol. Page 2 premium amounting to ₹18,66,40,000/- after holding that the assessee had not discharged its burden of proving the concerned investors’ identity much less genuineness and creditworthiness thereof. Needless to say, the CIT(A) has confirmed the same in his ex parte assessment order under challenge.