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Income Tax Appellate Tribunal - Kolkata

Sheetal Cityrealtors Pvt Ltd (Formely ... vs I.T.O.,Ward-5(3), Kolkata on 21 October, 2020

           आयकर अपील य अधीकरण,                  यायपीठ - "ए" कोलकाता,
                  IN THE INCOME TAX APPELLATE TRIBUNAL
                KOLKATA BENCH "VIRTUAL COURT A" KOLKATA

              Before Shri J.Sudhakar Reddy, Accountant Member and
                     Shri S.S.Godara, Judicial Member

                            ITA No.1606/Kol/2019
                           Assessment Year: 2008-09


         Sheetal Cityrealtors Pvt.         बनाम        Income Tax Officer
         Ltd., (formerly Evergreen              /      Ward-5(3), Aayakar
         Mercantile P. Ltd.) 107,          V/s .       Bhawan, 8 t h Floor, P-7,
         Foreshore Road, Shibpur,                      Chowringhee Square,
         Howrah-711102                                 Kolkatka-700 069
         [PAN No.AABCE 8664 L]

               अपीलाथ /Appellant           ..               यथ /Respondent



  अपीलाथ क ओर से/By Appellant                       Shri S.M.Surana, Advocate
        यथ क ओर से/By Respondent                    Shri Dhrubajyoti Ray, JCIT-SR-DR
  सुनवाई क तार ख/Date of Hearing                    01-10-2020
  घोषणा क तार ख/Date of Pronouncement               21-10-2020

                                  आदे श /O R D E R

PER S.S.Godara, Judicial Member:-

This assessee's appeal for assessment year 2008-09 arises against the Commissioner of Income Tax (Appeals)-2, Kolkata's order dated 30.05.2016 passed in case No.1556/CIT(A)-2/Kol/14-15 involving proceedings u/s143(3) r.w.s. 263 r.w.s 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short 'the Act'.

Heard both the parties. Case file(s) perused.

Sheetal Cityrealtors Pvt. Ltd. Vs ITO Wd-5(3), Kol. Page 2

2. We advert to the basic relevant facts pertaining to the sole issue of correctness of both the lower authorities' action treating assessee's share capital / premium of ₹3,91,00,000/- as unexplained cash credits during the course of assessment dated 26.03.2014 as upheld in the CIT(A)'s ex parte order; without dealing with the corresponding detailed evidence on record in compliance to sec. 250(6) of the Act requiring framing of points of determination followed by a detailed adjudication.

3. The assessee is a company engaged in share dealing & investment business. It had filed its original return on 15.07.2008 declaring "nil" income. The same stood processed. The Assessing Officer thereafter formed reason to believe that the assessee taxable income liable to be assessed had escaped assessment. He thus initiated sec. 148 re-opening in motion and completed the corresponding re-assessment on 18.05.2010 determining total income at ₹22,500/- only.

4. We notice from a perusal of the case file that the CIT thereafter termed the said re-assessment as an erroneous one causing prejudice to the interest of Revenue to exercise his sec. 263 revision jurisdiction vide order dated 28.03.2013 and directed the Assessing Officer to verify the three limb(s) of identity, genuineness and creditworthiness of the investor parties qua the assessee's share application / premium after conducting independent enquiries. Learned departmental representative fails to rebut the clinching fact that the Assessing Officer's consequential assessment adding the impugned sum as unexplained cash credits had once again put the onus on assessee itself than carrying out the independent enquiries as per the CIT's original revision direction hereinabove.

Sheetal Cityrealtors Pvt. Ltd. Vs ITO Wd-5(3), Kol. Page 3

5. We also wish to repeat that the CIT's lower appellate order under challenge had also not dealt with assessee's detailed evidence forming part the case file in support the genuineness / creditworthiness of the share application / premium. We therefore deem it appropriate to restore the sole issue back to Assessing Officer to frame afresh assessment within three effective opportunities of hearing in compliance to the CIT's original revision direction as per law.

6. This assessee's appeal is allowed for statistical purposes in above terms.

        Order pronounced in open court on 21/10/2020

               Sd/-                                           Sd/-
        (लेखा सद'य)                                      ( या)यक सद'य)
     (J.Sudhakar Reddy)                                    (S.S.Godara)
      Accountant Member                                  Judicial Member

*Dkp-Sr.PS
*दनांकः- 21/10/2020               कोलकाता / Kolkata
आदे श क       त ल प अ े षत / Copy of Order Forwarded to:-

1. अपीलाथ /Appellant-Sheetal Cityrealtors Pvt. Ltd. (formerly Evergreen Mercantile Pvt. Ltd.) 107, Foreshore Road, Shibpur, Howrah-711102

2. यथ /Respondent-Income Tax Officer, Ward-5(3), Aayakar Bhawan, 8th Floor, P-7, Chowringhee Square, Kolkata-69

3. संबं-धत आयकर आयु.त / Concerned CIT

4. आयकर आयु.त- अपील / CIT (A)

5. /वभागीय )त)न-ध, आयकर अपील य अ-धकरण कोलकाता/DR, ITAT, Kolkata

6. गाड3 फाइल / Guard file.

By order/आदे श से, /True Copy/ सहायक पंजीकार आयकर अपील य अ-धकरण, कोलकाता ।