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Income Tax Appellate Tribunal - Bangalore

M/S. Akshayakalpa Farms And Foods Pvt ... vs Assistant Commissioner Of Income Tax ... on 17 September, 2019

                      IN THE INCOME TAX APPELLATE TRIBUNAL
                               "B'' BENCH : BANGALORE

            BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND
                    SMT. BEENA PILLAI, JUDICIAL MEMBER

                               ITA No.26/Bang/2019

                            Assessment year: 2015-16

M/s Akshayakalpa Farms and Food Pvt.     Vs.   The Asst. Commissioner of Income-tax
Ltd.,                                          Circle-1,
No.382/2, Sharda Nagar,                        Tumkur.
Tiptur.

PAN - AAICA 4264 B
            APPELLANT                                    RESPONDENT

    Appellant by    : None
    Respondent by   : Shri Vinod Sharma, JCIT (DR)

                    Date of hearing       : 17.09.2019
                    Date of Pronouncement : 17.09.2019

                                    ORDER

      Per B.R. Baskaran, Accountant Member

The assessee has filed this appeal challenging the order dated 6/11/2018 passed by ld CIT(A)-7, Bengaluru and it relates to asst. year 2015-16.

2. None appeared on behalf of the assessee. Even though the notice of hearing was sent by registered post on the prior occasion and it was duly acknowledged by the assessee, yet the assessee did not appear for the hearing. Hence we proceed to dispose of the appeal ex-parte, without the presence of the assessee.

3. We heard ld DR and perused the record. We noticed that the assessee has not appeared before ld CIT(A) also and hence the first appellate authority was constrained to pass order ex-parte.

4. The issue contested by the assessee was related to valuation of shares on conversion of compulsory convertible preference shares (CCPS) into equity shares. The assessee had converted CCPS into equity shares of Rs.10 each at price of 17.52. However, the AO determined the FMV of equity shares at 12.80 per share. Accordingly the AO has assessed excess amount aggregating to Rs.50.79 lakhs as income of the assessee u/s 56(2)(viib) of the Act. The ld CIT(A) confirmed the addition and hence the assessee has filed this appeal before the Tribunal.

5. We have already noticed that the assessee has not appeared before the ld CIT(A) and hence the Ld CIT(A) has passed order ex- parte. However, in the interest of natural justice, we are of the view that the assessee should be provided with one more opportunity to present its case before ld CIT(A). However, the same will be at cost. Accordingly we impose a cost of Rs.5000/- (Rupees Five thousand) upon the assessee which shall be paid to the credit of Income-tax Department as 'other fees' within a period of 2 months from the receipt of this order. Subject to the payment of above fees, all the issues contested in the present appeal are restored to the file of ld CIT(A) for adjudicating them afresh, after affording adequate opportunity of being heard to the assessee.

6. In the result, the appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the Open Court on 17th September, 2019.

      Sd/-                                              Sd/-
(Beena Pillai)                                   (B.R Baskaran)
Judicial Member                                 Accountant Member

Bangalore,
Dated, 17th September, 2019.

/ vms /

Copy to:

1.    The Applicant
2.    The Respondent
3.    The CIT
4.    The CIT(A)
5.    The DR, ITAT, Bangalore.
6.    Guard file
                                            By order


                                 Asst. Registrar, ITAT, Bangalore.
                                                         ITA No.26/Bang/2019

                                 Page 4 of 4

1. Date of Dictation .............................................

2. Date on which the typed draft is placed before the dictating Member .........................

3. Date on which the approved draft comes to Sr.P.S ...................................

4. Date on which the fair order is placed before the dictating Member ....................

5. Date on which the fair order comes back to the Sr. P.S. .......................

6. Date of uploading the order on website...................................

7. If not uploaded, furnish the reason for doing so ................................

Dictation note enclosed ............................

8. Date on which the file goes to the Bench Clerk .......................

9. Date on which order goes for Xerox & endorsement..........................................

10. Date on which the file goes to the Head Clerk .........................

11. The date on which the file goes to the Assistant Registrar for signature on the order .....................................

12. The date on which the file goes to dispatch section for dispatch of the Tribunal Order ...............................