M/S. IDEAL VYAPPR PVT. LTD. ,KOLKATA vs. ITO, WARD- 6(2), KOLKATA. , KOLKATA
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal noted that the assessee failed to appear for multiple hearings despite notices. Given the lack of representation and substantiation from the assessee, the Tribunal found no reason to interfere with the orders of the lower authorities.
What were the facts?
The assessee company raised share capital of Rs. 2 crore including share premium. The Assessing Officer treated this amount as unexplained cash credit under Section 68 of the Income Tax Act, 1961, and made an addition. The CIT(A) upheld the addition.
What were the issues?
Whether the addition of Rs. 2 crore towards share capital and premium as unexplained cash credit under Section 68 was justified, considering the assessee's failure to provide adequate explanation and representation.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH KOLKATA
Before: SHRI RAJPAL YADAV & SHRI GIRISH AGRAWAL
Present for: Appellant by : N o n e Respondent by : Shri Manoj Kumar Pati, Addl. CIT Date of Hearing : 01.04.2024 Date of Pronouncement : 09.04.2024 O R D E R
PER RAJPAL YADAV, VICE PRESIDENT:
This appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2023-24/1055034530(1) dated 10.08.2023 passed against the assessment order by ITO, Ward-6(2), Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 16.03.2015 for AY 2012-13.
2. The sole issue raised in the present appeal is in respect of addition of Rs. 2 Cr. made by the AO towards share capital including share premium raised by the assessee during the year treating it as unexplained cash credit u/s. 68 of the Act. Grounds taken by the assessee are not reproduced for the sake of brevity.
Ideal Vyapaar Pvt. Ltd., AY 2012-13
At the outset, we note that this appeal has been fixed for hearing on several occasions in the past. However, on all the said occasions, none appeared before us representing the assessee. Notices fixing the date of hearing have been sent to the assessee through RPAD as well as on e-mail provided by the assessee in the Form 36. Assessee has placed on record a paper book containing 41 pages. By taking into consideration the paper book placed on record and the orders of the authorities below, we are inclined to take up the appeal for adjudication ex parte qua the assessee.
Brief facts in this respect are that assessee filed its return of income on 07.12.2012 reporting total income of Rs.2,834/-. In the course of assessment, Ld. AO noted that assessee has raised share capital of Rs. 2 Cr. including share premium. Explanations and details were called for. Assessee made the necessary compliance by filing various documentary evidence, fact of which are noted by the AO by taking into the material placed on record. Ld. AO referred to certain judicial precedents on the doctrine of theory of preponderance of human probability and arrived at adverse conclusion of holding the sum of Rs. 2 Cr. as unexplained cash credits u/s. 68 of the Act and made the addition thereof. Aggrieved, assessee went in appeal before the Ld. CIT(A), who by simply reproducing the order of the Ld. AO and referring to several judicial precedents dismissed the appeal of the assessee. Aggrieved, assessee is in appeal before the Tribunal. 4. Before us, as already noted, none has represented the assessee except for filing a paper book. The contents of the paper book as listed in its index & are reproduced hereunder for ease of reference:
Ideal Vyapaar Pvt. Ltd., AY 2012-13 Ideal Vyapaar Pvt. Ltd., AY 2012-13 Ideal Vyapaar Pvt. Ltd., AY 2012-13
Before us, none appeared to represent the assessee and substantiate the claim made by it. From the perusal of the orders of the authorities below, we observe that assessee has been contesting that it had made all the submissions in support of the transaction in which additions have been made which have not been considered. However, it is a fact on record that some of the notices issued for fixing the hearing have been returned unserved which were issued on the address mentioned in Form 36 and also on e-mail. On certain occasions, assessee has sought adjournments by making applications on its letter heads which were allowed. It appears that assessee has resorted to pseudo compliance approach by being a spectator of the proceedings. Such an approach of the assessee is futile and infructuous since nothing is explained for the transaction it had undertaken. In the absence of any such explanation coming forth from the assessee, we do not find any reason to interfere with the observations and findings arrived at by the authorities below. Accordingly, grounds taken by the assessee are dismissed.
In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 9th April, 2024.
More judgments on Section 68
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- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
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