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Income Tax Appellate Tribunal - Kolkata

M/S. Anamika Steel Traders (P) Ltd.,, ... vs Ito, Ward - 3(2), Kolkata, Kolkata on 19 September, 2018

                 IN THE INCOME TAX APPELLATE TRIBUNAL
                      KOLKATA BENCH "A", KOLKATA

           BEFORE SH. P.M.JAGTAP, ACCOUNTANT MEMBER
                              AND
           SH. S.S.VISWANETHRA RAVI, JUDICIAL MEMBER

                            ITA No.1275/KOL/2017
                          [Assessment Year: 2012-13]

         M/s. Anamika Steel Traders                   ITO,
         Pvt.Ltd., 2B, Grant Lane, 4th Floor,    vs   Ward-3(2), P-7,
         Kolkata-700012.                              Chowringhee Square,
         PAN-AAICA0576A                               Kolkata-700069.
                                                      .
         (Appellant)                                  (Respondent)

         Appellant by     Sh. Sunil Surana, FCA
         Respondent by    Sh. D.A.J.Sawkmie, CIT DR
         Date of Hearing                       06.09.2018
         Date of Pronouncement                 19.09.2018


                                      ORDER


PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER

This appeal by the assessee against the order dated 28.02.2017 passed by CIT(A)-9, Kolkata for AY 2012-13.

2. After hearing both the parties, we find that Ld.CIT u/s 263 proceedings directed the AO to conduct inquiries with the Directors of the share subscribing company. The contention of the Ld.AR was that no such inquiry was conducted by the AO and urged to remand the matter to the AO. Therefore, taking into consideration the facts and circumstances of the case and the issue involved therein, we remand the matter back to the file of AO to conduct inquiries as set out hereunder:-

i) 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 Page | 1 ITA No.1275/KOL/2017 [Assessment Year: 2012-13] be examined in the course of verification to find out the money trail of the share capital.
ii) 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.
iii) 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."

3. In view of the above, the grounds raised by the assessee are allowed for statistical purposes.

4. In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 19.09.2018.

    Sd/-                                                            Sd/-
(P.M.JAGTAP)                                               (S.S.VISWANETHRA RAVI)
ACCOUNTANT MEMBER                                                 JUDICIAL MEMBER

Date:- 19.09.2018
*Amit Kumar*

Copy forwarded to:

1. Appellant- M/s. Anamika Steel Traders Pvt.Ltd., 2B, Grant Lane, 4th Floor, Kolkata-700012.

2. Respondent- ITO, Ward-3(2), P-7, Chowringhee Square, Kolkata- 700069.

3. CIT-Kolkata.

4. CIT(Appeals)-Kolkata.

5. DR: ITAT -Kolkata Benches Sr.P.S./H.O.O ITAT, KOLKATA Page | 2