Income Tax Appellate Tribunal - Kolkata
M/S. Aic Iron Industries Pvt. Ltd., ... vs Dcit, Circle-3(1), Kolkata, Kolkata on 8 August, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA BENCH "B", KOLKATA
BEFORE SH. J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND
SH. S.S.VISWANETHRA RAVI, JUDICIAL MEMBER
ITA No.1018/KOL/2017
[Assessment Year: 2012-13]
M/s. AIC Iron Industries Pvt.Ltd., vs DCIT,
25, Ganesh Chandra Avenue, 4th Circle-3(1),
Floor, Kolkata-700013. Kolkata.
PAN-AACCN0217F
(Appellant) (Respondent)
Appellant by Sh. S.M.Surana, Advocate
Respondent by Sh. S.Dasgupta, Addl. CIT DR
Date of Hearing 10.07.2018
Date of Pronouncement 08.08.2018
ORDER
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER
This appeal filed by the assessee against the order dated 28.02.2017 passed by CIT(A)-9, Kolkata for AY 2012-13.
2. The Ld. AR submits the issue involved in the appeal is introduction of share capital by the subscriber companies in assessee's company and the AO added an amount of Rs.2,65,00,000/- under the head "undisclosed cash credit" u/s 68 of the income Tax Act, 1961 (in short "Act"). The CIT(A) dismissed the grounds of appeal raised before him challenging the order of the AO ex-parte. In these circumstances, the matter may be to remanded to the file of the AO for conducting inquiries independently on each of the share subscribing companies. The ld. DR did not controvert the same.
3. Heard the rival submissions and perused the material available on record. We find the AO found the assessee received share capital to the extent of Rs.2,65,00,000/- from many companies as detailed in para 4 of the AO's order. The said amount was added to the total income of the assessee for non-compliance Page | 1 ITA No.1018/KOL/2017 [Assessment Year: 2012-13] to produce the directors of investing companies for verification of its identity and genuineness & creditworthiness of the transactions. Taking into consideration and the submissions of Ld.AR & DR and in view of the facts and circumstances of the case, we remand the matter to the file of AO to conduct inquiry as set out herein under:-
Examine the genuineness and source of share capital, not on a test check basis, but in respect of each and every shareholder by conducting independent enquiry not through the assessee. The bank account of the entire period should be examined in the course of verification to find out the money trail of the share capital.
Further the A.O. should examine the directions as well as examine the circumstances which necessitated the change in directorship if applicable. He should examine them on oath to verify their credentials as director and reach a logical conclusion regarding the controlling interest.
The A.O. is directed examine the source of realization from the liquidation of assets shown in the balance sheet after the change of Directors, if any."
4. In view of the above, Grounds raised by the assessee are allowed for statistical purposes.
5. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 08.08.2018.
Sd/- Sd/-
(J.SUDHAKAR REDDY) (S.S.VISWANETHRA RAVI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Date:-08.08.2018
*Amit Kumar*
Page | 2
ITA No.1018/KOL/2017
[Assessment Year: 2012-13]
Copy forwarded to:
1. Appellant- M/s. AIC Iron Industries Pvt.Ltd., 25, Ganesh Chandra Avenue, 4th Floor, Kolkata-700013.
2. Respondent-DCIT, Circle-3(1), Kolkata.
3. CIT-Kolkata
4. CIT(Appeals)-Kolkata
5. DR: ITAT-Kolkata Benches Sr.P.S./H.O.O ITAT, KOLKATA Page | 3