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TMI Blog2024 (3) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter requires to be restored back to the files of Ld. CIT(A) for fresh adjudication. CIT(A) has passed an ex-parte order - As reasonable opportunity of being heard against the principle of natural justice since no explanations or evidence that opportunities were not granted to the assessee by Ld. CIT(A) have been brought on record or to our attention by the assessee neither such contentions are emerging from the impugned order of Ld. CIT(A) therefore such contentions raised in ground. No. 1 are unsustainable, thus, are rejected.he assessee by Ld. CIT(A) have been brought on record or to our attention by the assessee neither such contentions are emerging from the impugned order of Ld. CIT(A) therefore such contentions raised in ground. No. 1 are unsustainable, thus, are rejected. Thus the present appeal is restored to the file of the CIT(Appeals) with a direction to re- adjudicate the same after taking cognizance of the additional documentary evidence in the course of the proceedings before us. Assessee appeal allowed for statistical purposes. - SHRI RAVISH SOOD, JM AND SHRI ARUN KHODPIA, AM Assessee by: None Revenue by: Shri S.K. Meena, CIT-DR ORDER Per Arun Khodpia, AM: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to this effect dated 09.10.2023 thereafter the appeal was fixed for hearing on 5 occasions, but no one has attended the hearing to prosecute the matter on behalf of the assessee. Under these circumstances we are constrained to dispose-off the appeal based on submissions by the revenue and the material available on record. 4. The brief facts of the case culled out from the records are that the assessee is a resident private limited company engaged in the business of Real Estate Investment and has derived income in the business from profession, income from other sources being interest from deposits and interest from saving Account. Scrutiny assessment u/s 143 (3) in the case of the assessee was completed on 19.12.2016 wherein an addition of Rs. 5,16,16,970/- was made by invoking provisions 56(2)(7a) thereby determining the total income of the assessee at Rs. 5,14,64,140/-. 5. Aggrieved by said addition by the Ld. AO, assessee preferred an appeal before the Ld. CIT(A) however, the appeal of the assessee is dismissed, and the entire addition made by the Ld. AO has been confirmed. 6. Dissatisfied with the decision of the Ld. CIT(A) the assessee has in the present appeal before us. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Pvt. Ltd at the rate of Rs. 10 per share. (ii)For investment in Crest Steels Power Pvt Ltd. Face value of each share=Rs. 10 Premium of each share=Rs. .17 FMV of each share= Rs. 27.31 As the assessee has purchased each share at a price of Rs. 27/-, against the book value of share at Rs. 27.31/- at the time of issue, therefore, it gained a profit of Rs. 0.31/- (Rs. 27.31 -Rs. 27) per share. So the total profit received by the assessee for buying 1,29,16,400 shares =1.29.16,400 X Rs. 31= Rs. 40,04,084/- From the above calculation, it is found that the assessee company has gained Rs. 40,04,084/-as profit by virtue of investment in purchase of 27,50,600 shares of Crest Steel and Power Pvt. Ltd at Rs.27 per share. 3.1.2 Therefore, the addition made by AO amounting to Rs. 50,99,55,000/- (Rs.5,28,00,000/- + Rs.42,74,55,000/-) in AY 2013-14 and Rs.5,16,16,970/- (Rs.40,04,084/-+ Rs.4,76,12,886/- in AY 2014-15 is Confirmed. Therefore, the appeal on these grounds is Dismissed. 3.2 Ground No. 2 for AY 2013-14 and 2014-15 :- Through these grounds of appeal the appellant has challenged the legality of assessment order. On perusal of copy of assessment order, it is seen that the AO has issued n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Commissioner of Income Tax, Central Circle - 2, Raipur ( the Ld.AO ) under the provisions of section 143(3) of the Act on 19th December, 2016 briefly upholding the findings conclusions recorded in the above referred search assessment order. 2. That aggrieved with the same, the appellant herein has filed the captioned appeal under the provisions of section 253 of the Act before the Hon'ble Income Tax Appellate Tribunal, Raipur Bench on 20th December, 2021 which have been numbered as ITA. No.109/RPR/2021 as mentioned above. 3. That the original return of income was filed under the provisions of section 139 of the Act on 30.09.2014 declaring a total income of Rs.NIL. After passing the Search Assessment Orders in the case of the appellant, the Assessment Order had been passed u/s. 143(3) of the Act thereby determining the Total Income at an astronomical figure of Rs.5.16 Cr. With a consequential humongous demand of Rs.2.22 Cr. wherein the addition on sole issue pertains to the 'fresh allotment' of equity shares by group company viz. M/s.Crest Steel Power Private Limited ( CSPPL ) on various dates. 4. That the ex-parte Appellate Order passed by the Ld. CIT(A) u/s.250 is h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution and further, in accordance with the provisions of Rule IIU/IIUA r.w.s.56(2)(vii), Balance Sheets of the share issuer companies viz. CSPPL was required to be placed which in view of the aforesaid limitations could not be accomplished thereby disabling the appellant from filing of written submissions. With a view to substantiate its claim that there was a reasonable cause and due to extenuating circumstances beyond its control the appellant could not file the documentary evidences before the Ld.CIT(A) and the Ld.AO, the appellant has filed an 'Additional Paper Book' running into 20 Pages before this Hon'ble Bench with all the Documents and evidences with S.No.1 to 5 of the said Paper Book. It is further submitted that the documents and evidences at Sl.No.1 to 5 are in the form of additional evidences which were not filed before the lower authorities being in the nature of the Details/Bifurcation of Share Capital into Equity Shares Preference Shares - Share Capital Share Premium, Form No. 2 prescribed under the Companies Act, 1956 (Return of Allotment) evidencing allotment of share capital in case of CSPPL, Form No.20B along with Annual Return etc. and hence, are vit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,92,50,000/- alleging anomalies in the method of valuation adopted by the A.O. As the challenge thrown by the Ld. AR qua the quantification of addition, which, as per him, is based on an incorrect approach and wrong construing of the provisions of law by the A.O. is based on additional evidence that has been filed before us for the first time and admitted by us, therefore, in all fairness, it would be premature to adjudicate the same without affording a sufficient opportunity of perusing and verifying the correctness of the same by the A.O. Apropos the claim of the Ld. AR that no incriminating documents/material was found and seized in the course of the search proceedings conducted u/s. 132 of the Act on 10.10.2012 on the assessee company, the same cannot be summarily accepted on the very face of it and would require to be vetted by the A.O. by referring to the seized record/material. 28. As stated by the assessee, and rightly so, there were justifiable reasons on its part for not filing the requisite details/documents, which have been filed before us as additional evidence, in the course of the proceedings before the CIT(Appeals). Also, it is a matter of fact borne from the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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