CLORET INVESTMENTS PVT. LTD.,KOLKATA vs. ITO, WARD 11(2), KOLKATA

At the outset, the ld. Counsel for the assessee submitted that this is a second round of appeal before the Tribunal. In the first round of appeal, the Tribunal restored the issue to the file of the ld. AO to decide the issues afresh. However, by relying on the agreement dated 23.03.2012, between M/s Cloret Investment Pvt. Ltd. and Pushpak Commercial Pvt. Ltd, which was for purchase of shares of the group

In the appellate proceedings, the ld. CIT (A) passed the ex-parte order dismissing the appeal in limine, when the assessee failed to furnish the necessary documents.

The ld. AR prayed that the appeal may be restored to the file of the ld. CIT (A) for denovo adjudication of the issue after a reasonable opportunity of hearing to the assessee.

After hearing the rival contentions and perusing the materials available on record, we find that the ld. CIT (A) has passed an ex- parte order confirming the assessment framed by the ld. AO, thereby upholding the addition made u/s 68 of the Act. The assessee claimed that when the money was not received during the year and it was only allotment of shares which was effected during the impugned assessment year. Therefore, section 68 of the Act is not applicable. In our opinion, the issue is required to be examined at the level of ld. CIT (A) before whom the proceedings attained finality, ex-parte. Consequently, we restore this appeal to the file of the ld. CIT (A) with a direction for denovo adjudication after offering reasonable opportunity of hearing to the assessee and the assessee is also directed to co-operate in the proceedings by fling the necessary documents as called for by the ld. CIT (A).The appeal is allowed for statistical purposes.

The assessee has challenged the appellate order passed by ld. CIT (A) on legal issue as well as on merit.

In the result, both the appeals of the assessee are allowed for statistical purposes.