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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 ..... stice and not in accordance with the provisions of law. It is prayed that the Appellate Order passed under section 250 of the Act may please be cancelled/set-aside on this ground alone. 2. On the facts and in the circumstances of the case as well as in law, the Ld. ClT(A) has grossly erred in confirming an addition of Rs.5,16,16,970/- made by the Learned Assessing Officer invoking the provisions of section of the Act which is highly unjustified, unwarranted, unsustainable, not proper on facts, based on presumptions & surmises, without providing adequate opportunity of being heard, contrary to the principles of natural justice and not in accordance with the provisions of law. Hence, it is earnestly prayed that the addition of Rs.5,16,16,970/- may please be deleted. 3. That the Appellant craves leave to add, amend, alter or delete all or any of the grounds of Appeal at the time of hearing of the appeal. 3. At the outset, it is observed that the present case was fixed for hearing on several occasions i.e. on 22.02.2023, 24.03.2023, 20.04.2023, 06.06.2023, 05.07.2023, 14.08.2023, 23.08.2023, 11.10.2023, 26.11.2023, 10.01.2024 and 05.03.2024 on the various dates of hearing only o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny and engaged in the business of real estate investment, The company is deriving income from business, interest income from deposits and bank savings. The appellant during the years had made the investment in share purchase as under: - AY Name of the company Listed/Unlisted No. of Shares Purchase Rates per share (Rs.) Total Value of Share purchased (Rs.) 2014-15 Crest Steels & Power Pvt. Ltd. Unlisted 27,50,600 10 2,75,06,000 2014-15 Crest Steels & Power Pvt. Ltd Unlisted 1,29,16,400 27 34,87,42,800. The appellant invested in the shares at the face value whereas the apparent value of the shares was higher. The AO called the details from the appellant in view of the applicability of the provisions of section 56(2)(vii) of the I.T. Act. The appellant furnished the fare market value of shares on the date of allotment. The working of fair market value and the gain by the appellant is worked out as under: A.Y. 2014-15:- (i)For investment in Crest Steels & Power Pvt Ltd. Face value of each share=Rs. 10 Premium of each share=Rs. 0 Purchase price of each share=Face value + premium Rs, 10+Rs. 0=Rs. 10 FMV of each share=Rs. 27.31 As the assessee has received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking order and has followed proper procedure before passing the assessment order. Therefore, the ground raised by appellant has no merits and is rejected. Thus, appeal on these grounds is Dismissed. 8. Ld. CIT DR strongly supported the orders of the Ld. CIT(A) wherein the issue has been dealt with on merits and deliberated at length, therefore, there is no perversity in the order of Ld. CIT(A) and accordingly, the addition sustained by Ld. CIT(A), is deserves to be upheld. 9. During the earlier hearings in this case, an application for admission of additional evidence was also submitted by the assessee dated 03.07.2023, elaborating the reasons as to why such evidence could not be submitted before the Ld. CIT(A). For the sake of completeness of the facts, the said application is extracted as under: BEFORE THE HON'BLE INCOME - TAX APPELLATE TRIBUNAL RAIPUR BENCH. RAIPUR (C.G.) In the Matter of: M/s. Riya Real Estates Private Limited, 308, 3 rd Floor, Ceejay House, Dr. A. B. Road, Worli, MUMBAI (MH) - 400018 (Appellant) Vs. Asst. Commissioner of Income Tax Central Circle - II, Aayakar Bhawan, Civil Lines, RAIPUR (CG) - 492001 (Respondent) In (i) Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant time, most of the Group Companies including inter alia the aforesaid Share Issuer Company viz. CSPPL was reeling under great financial stringency/severe financial crisis and hence, incapable of honouring the borrowing commitments of various banks & financial institutions which thereafter initiated stern recovery proceedings hence, to obtain the documentary evidences to support the appeal cases was an onerous task. Finally, insolvency proceedings were instituted by various financial creditors against most of the group companies including the aforesaid CSPPL (treating them as "Corporate Debtor") under the provisions of section 7, 9 & 10 of the IBC, 2016 before the Benches f Hon'ble NCLT and subsequently, the Insolvency Petitions filed by the Financial Creditor(s) were 'admitted' and Resolution Professionals were appointed for initiation of Corporate Insolvency Resolution Process. That, owing to severe financial crisis, at the relevant time, the skilled experienced accounts personnel left their jobs, leaving behind a few employees who were still new to the nuances of assessment/appellate procedure and hence, there was complete lack of co-ordination between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal Evidences as above. 9. We have considered the submissions of the revenue and material available on record. In the present case, since the issues raised by the assessee before the Ld. CIT(A) have been decided on merits after considering and deliberating upon the facts of the case. On perusal of the order of Ld. CIT(A) it is observed that proper working of the addition u/s 56(2)(viia) were drawn and correct figures of the additions were arrived at. Since such calculations have not been dislodged by the assessee before the revenue authorities, we do not find any infirmity in the order of Ld. CIT(A). However, since there were certain additional information submitted by the assessee which could not be submitted before the revenue authorities for the reasons refer to in the application of admission of additional evidence, therefore, in the interest of justice the matter requires to be restored back to the files of Ld. CIT(A) for fresh adjudication. Herein, it would be pertinent to mention that on similar aspect and issues under the identical circumstances in the assessee's own case for the AY 2012-13 & 2013-14, coordinate bench of the ITAT, Raipur had set aside the matter to the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and also addressing the additional grounds of appeal that have been raised by the assessee in the course of the proceedings before us. Needless to say, the CIT(Appeals) shall, in the course of set-aside proceedings, afford a reasonable opportunity of being heard to the assessee company, which shall remain at liberty to substantiate its contentions on the basis of fresh documentary evidence. 29. In the result, the appeal of the assessee company in IT(SS)A No. 1/RPR/2018 for A. Y. 2012-13 is allowed for statistical purposes in terms of our aforesaid observations. 10. Regarding ground no. 1 of the assessee that the Ld. CIT(A) has passed an ex-parte order that provide 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. 11. In view of aforesaid observations, respectfully following the view adopted by the tribunal which is mutatis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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