The Kolkata bench of Income Tax Appellate Tribunal (ITAT) recently held that Appeal filed after four years could not be condoned without valid reason.
Assessee Hrishikesh Mega Township (P) Limited filed the appeal before the ITAT against the order of the Commissioner of Income Tax (Appeal).The circumstance for arising the appeal was, without proper presentation on part of the assessee the CIT(Appeals), pronounce the exparte order.
On filing the appeal assessee raised some grounds ,the main ground was that CIT(Appeals), has erred in confirming the order of Assessing Officer(AO), whereby an addition of Rs.10,22,00,000/- was made with the aid of section 68 of Income Tax Act 1961 on account of bogus share capital.
Section 68 of the Income Tax Act 1961 says that if any sum is found in the book of the taxpayer ,the taxpayer could not explain the nature and source of that income in such a situation assessing officer levy tax on that income along with the current income of the assessee.
An assessment order was passed by the AO after verifying the records submitted by the assessee in filing income tax return under section 147 of Income Tax Act 1961 in the year 2010.But this order was set-aside by the commissioner as per section 263 Income Tax Act 1961 .Further AO sought assessee to submit necessary documents for supporting claim for share capital. Assesee informed the AO that they filed an appeal before ITAT and the proceedings should be kept in abeyance .But assessee did not produce any documents related to the appeal filed before the ITAT. Under these circumstances the AO treated the alleged share capital as bogus and made the addition of Rs.10,22,00,000/-
Section 263 of the Income Tax Act 1961.says that if the order issued by the assessing officer is prejudicial and erroneous to the interest of the revenue the commissioner has the power to revise the order of the Assessing Officer .
G. Hukuya Sema, counsel appearing for the revenue submits that assessee did not appear before the CIT (Appeals), did not submit any detail. 1st Appellate Authority had given a number of opportunities to the assessee.In such circumstances, 1st Appellate Authority had to concur with the Assessing Officer.
After considering the submission the Division bench of the ITAT comprising Shri Rajpal Yadav,(Vice-President) and Girish Agrawal, (Accountant Member) dismissed the appeal filed by the assessee and held that” assessee has nothing to say in support of its alleged bogus share capital claim. There is a huge gap of roughly four years, which has not been explained by the assessee, or no one has responded to the notices issued by the Tribunal”
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