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Facts
The Assessing Officer made an addition of Rs. 2,30,46,629/- on account of share premium over and above the Fair Market Value (FMV) of the share. The Assessee challenged this addition. The Commissioner (Appeals) acknowledged the challenge but instead of deciding the appeal against the assessment order, proceeded to decide a rectification order.
Held
The Tribunal noted that the appeal against the assessment order remained un-adjudicated. For the sake of justice, the Tribunal decided to remand the case to the Commissioner (Appeals) to decide the appeal against the assessment order after providing a reasonable opportunity to the Assessee.
Key Issues
Whether the Commissioner (Appeals) erred in deciding a rectification order instead of the primary appeal against the assessment order. Whether the addition made on account of share premium was justified.
Sections Cited
143(3), 68, 154
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Income Tax Appellate Tribunal, “B” BENCH, BENGALURU BENCH
Before: SHRI N. K. CHOUDHRY, JM & SHRI LAXMI PRASAD SAHU, AM
This appeal has been preferred by the Assessee against the order dated 07.12.2023, impugned herein, passed by National Faceless Appeal Centre (NFAC), Delhi/Ld. Commissioner of Income Tax (Appeals) [in short ‘Ld. Commissioner’] under section 143(3) of the Income Tax Act 1961 (in short ‘the Act’) for the Assessment Year (in short ‘AY’) 2016-17.
M/s. Ika Yoga Wear Pvt. Ltd.
In the instant case, the Assessing Officer (in short ‘AO’) vide assessment order dated 8.12.2018 u/s. 143(3) of the Act, made an addition of Rs.2,30,46,629/- u/s 68 of the Act on account of receipt of share premium over and above the FMV of the share and added the same in the total income of the Assessee. The Assessee being aggrieved challenged the said addition before the ld. Commissioner by filing first appeal, who though acknowledged the challenge to the assessment order u/s. 143(3) of the Act, dated 4.1.2019, in first appeal, however, inspite of deciding the appeal against the Assessing order referred to above, in fact proceeded to decide the rectification order dated 4.1.2019 passed u/s. 154 of the Act by the Assessing Officer, which as per parties submissions in fact was not the ‘lis’ before the ld Commissioner, who somehow, may be due to oversight or inadvertently, without deciding the appeal against the assessment order dated 8.12.2018, decided the validity of rectification order dated 4.1.2019. Hence, considering the peculiar facts and circumstances, as the appeal /grievance/grounds raised against the assessment order, dated 4.1.2019 remained to be un-adjudicated, and for the just decision and ends of justice, we are inclined to remand the instant case to the file of the ld. Commissioner for decision qua assessment order passed u/s 143(3) of the Act, suffice to say by affording reasonable opportunity to the Assessee to substantiate its case.
We are also inclined to direct the Assessee to comply with the notices and co-operate with the appellate proceedings and file the relevant reply/documents in support of its claim before the ld. Commissioner and in case further default, the Assessee shall not be entitled for any leniency.
Thus the case is remanded accordingly in the aforesaid terms.
M/s. Ika Yoga Wear Pvt. Ltd. 3. In the result appeal filed by the Assessee stands allowed for statistical purposes.