Rishikesh Mercantile Pvt. Ltd. Vs. ITO, Ward-4(1), Kolkata

Parties Involved

Facts Summary

The assessee company, Rishikesh Mercantile Pvt. Ltd., e-filed the return of income for AY 2012-13 declaring a total income of Rs. 11,46,030/-. The case was selected for scrutiny due to a large share premium received. Notices under sections 143(2) and 142(1) of the Income Tax Act were issued and complied with by the assessee. The Assessing Officer found that the company had issued shares involving different entities against high premiums. Despite being provided several opportunities, the assessee could not justify the transactions. The Assessing Officer relied on precedents and treated the entire amount as unexplained money, assessing the total income at Rs. 2,16,46,030/-. Aggrieved by the assessment order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) who passed an ex parte order dismissing the appeal. The assessee then filed this appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A), NFAC erred in law in passing an ex-parte order under section 250 of the Act without considering the submissions made in the appellate hearing.
• 2. Whether the Ld. CIT(A), NFAC provided adequate and proper opportunities to be heard to the appellant before passing the order.
• 3. Whether the Ld. CIT(A), NFAC erred in confirming the addition of Rs. 2,05,00,000 as unexplained income of the appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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