V Y Institute of Medical Science Private Limited Vs ACIT (ITAT Raipur)
The appeal before the Income Tax Appellate Tribunal (ITAT), Raipur concerned Assessment Year 2016–17 and was filed against the order dated 14.05.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi under Section 250 of the Income Tax Act, 1961.
The assessee, a hospital company, had filed its income tax return on 17.10.2017 declaring a loss of ₹45,38,01,828. During the relevant year, the assessee issued 2,58,303 shares at a face value of ₹10 each with a share premium of ₹80 per share, resulting in receipt of share capital amounting to ₹2,32,49,970. During scrutiny proceedings, the Assessing Officer sought details regarding the source and genuineness of the share capital. According to the Assessing Officer, the assessee failed to provide satisfactory explanations or proper compliance. Consequently, the amount of ₹2,32,49,970 was treated as unexplained cash credit under Section 68 of the Act and added to the income, resulting in an assessed loss of ₹43,05,51,858.
The assessee filed an appeal before the Commissioner of Income Tax (Appeals). However, the CIT(A) dismissed the appeal for want of prosecution. The appellate authority recorded that several notices for hearing had been issued but either no response was received or adjournments were sought. On the final date of hearing, neither written submissions were filed nor any adjournment was requested. Observing that sufficient opportunities had been provided and that the appellant appeared uninterested in pursuing the appeal, the CIT(A) dismissed the appeal.
