Fast-N-Perfect Commercial Private Limited Vs ITO (ITAT Kolkata)
The appeal before the Income Tax Appellate Tribunal (ITAT), Kolkata, was filed by a private company challenging the order of the Commissioner of Income Tax (Appeals)-13, Kolkata, dated 2 December 2017 for Assessment Year 2012-13. The assessee had originally filed its return of income electronically on 31 March 2013, declaring a total income of ₹94,036. The return was processed under section 143(1). Subsequently, the case was selected for scrutiny through CASS, and notice under section 143(2) was issued on 8 September 2013. A further notice under section 142(1), along with a questionnaire, was issued on 6 January 2015. However, the assessee did not respond to either notice and did not file any submissions.
During scrutiny, the Assessing Officer noted that the assessee had issued 21,31,548 equity shares during the financial year 2011-12, consisting of 20,00,000 shares of ₹10 each and 11,548 shares of ₹5,000 each, including a premium of ₹4,990 per share. The assessee received a total amount of ₹307,77,40,000 against these shares during the year, including a share premium of ₹305,64,24,520. To verify the identity and creditworthiness of the shareholders and the genuineness of the share capital transactions, notices under section 131 were issued to the directors of all shareholder companies, requiring them to appear personally and furnish supporting documents. None of them appeared before the Assessing Officer.
