TMI Blog2024 (4) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... se on merit do exhibit that it is a Company which is on papers only. The shadow prosecutor of the proceeding do ensure procedural compliance of filing appeals before the Appellate Authority in time. Our experience of more than twenty years in adjudicating such type of litigation do suggest that this type of stand is being taken intentionally so that the time limit to take action in the case of those share applicants could be expired and a plea be raised before the Higher Appellate Forum that matter be remitted back for deciding afresh on merit. After expiry of six years earlier prior to 2021 and now ten years, action in the case of share applicant would not be taken up by the Income Tax Authorities. When we examine these facts and try to st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iny assessment and notices under sections 143(2)/142(1) were issued and served upon the assessee. The assessee did not respond to those notices. The ld. Assessing Officer passed the assessment order under section 144(1) of the Income Tax Act, i.e. according to his best judgment. He observed that on verification of Income Tax Data Base, it revealed that assessee-company had issued paid-up shares including share premium amounting to Rs. 3,77,00,000/-. As observed earlier, the assessee did not respond any of the notices, therefore, the ld. Assessing Officer treated receipts of such money as unexplained cash credit and made an addition of Rs. 3,77,00,000/-. 4. Dissatisfied with the assessment order, the assessee carried the matter in appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein details on merit have been demonstrated before the ld. 2nd Appellate Authority. 7. We are conscious of the facts that punishment in the shape of taxes and penalty could be disproportionate to the negligence of assessee for not appearing before the ld. Assessing Officer or before the ld. 1st and 2nd Appellate Authority, but failure of the assessee to plead its case on merit do exhibit that it is a Company which is on papers only. The shadow prosecutor of the proceeding do ensure procedural compliance of filing appeals before the Appellate Authority in time. Our experience of more than twenty years in adjudicating such type of litigation do suggest that this type of stand is being taken intentionally so that the time limit to take acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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