Welsome Finance Pvt. Ltd. Vs ITO (ITAT Kolkata)
Non-compliance at appellate stage does not bar fresh chance if assessee can produce evidence; ITAT Kolkata Restores Share Capital Addition Issue to AO – Assessee Gets Fresh Opportunity
Kolkata Tribunal restored the issue of share capital addition to the file of AO for fresh adjudication, granting assessee another opportunity to substantiate its claim with evidence.
Assessee filed return on 29.09.2012 declaring income of ₹1,04,160/-. Case was selected for scrutiny under CASS for “large share premium received.” AO, noting assessee’s failure to substantiate identity, creditworthiness & genuineness, added ₹22.90 crore u/s 68 as unexplained share capital/share premium. CIT(A) upheld addition ex parte, as assessee failed to appear or produce documents despite several notices.
Assessee approached Tribunal with a plea that due to unavoidable circumstances it could not comply before CIT(A), but had sufficient evidence to prove its case. Tribunal acknowledged assessee’s failure before lower authorities but noted that in the interest of justice, one more opportunity should be provided. Tribunal observed that the matter involved high-pitched addition of ₹22.90 crore, hence fresh adjudication with complete documentation was necessary. ITAT directed assessee to fully cooperate & produce books, bank statements, returns & relevant evidence of directors/share applicants before AO. Matter restored to AO for de novo adjudication after granting adequate opportunity & Assessee directed to extend full cooperation & file complete supporting evidence.
