Principal Commissioner Of Income Tax, Central-1, Kolkata v. M/S. Consortium Enterprises Pvt Ltd

OD-50 & 51 IN THE HIGH COURT AT CALCUTTASpecial Jurisdiction (Income tax)ORIGINAL SIDE IA No.GA 1 of 2021 In ITAT 5 of 2021 PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-1, KOLKATAVsM/S. CONSORTIUM ENTERPRISES PVT LTD AND IA No.GA 2 of 2021 In ITAT 5 of 2021 PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL-1, KOLKATAVsM/S. CONSORTIUM ENTERPRISES PVT LTD BEFORE: The Hon'ble JUSTICE T. S. SIVAGNANAM AND The Hon’ble JUSTICE HIRANMAY BHATTACHARYYADate : 17[th] November, 2021. Appearance:Mr. Tilak MItra,Adv.Mr. Asok Bhowmik, Adv.…for the appellant.Mr.Siddhartha Das, Adv.Ms. Pritha Basu, Adv.…for the respondent. Re.: IA No.GA 1 of 2021 The Court : Heard Mr. Tilak Mitra, learned Counsel appearing for theappellant/Revenue and Mr. Siddhartha Das, learned Counsel appearing forthe respondent/assessee. We are satisfied with the reasons assigned in the affidavit filed insupport of the petition and, therefore, we are exercising discretion to condonethe delay in filing the appeal. Accordingly, the delay is condoned. Theapplication is allowed. This appeal of Revenue filed under Section 260A of the Income Tax Act(the ‘Act’ in brevity) is directed against the order dated 8[th] March, 2019passed by the Income Tax Appellate Tribunal, B-Bench, Kolkata (the‘Tribunal’) in I.T.(SS)A. No.88/Kol/2017 for the assessment year 2009-10. The Revenue has raised the following substantial questions of law forconsideration : i)Whether on the facts and circumstances of the case and in law,the Learned Income Tax Appellate Tribunal, failed to distinguishthe instant case from CIT –Vs- Kabul Chawla where absolutely noincriminating documents were found and additions were made asdeemed dividend, whereas in this case, additions were madeunder section 68 based on statements by entry operators, cashtrail, layering of unaccounted money through various boguspapers companies, which were unearthed during search basedon prima facie evidences of clandestine operations adopted byAssessee to evade tax? the Learned Income Tax Appellate Tribunal, failed to distinguishthe instant case from CIT –Vs- Kabul Chawla where absolutely noincriminating documents were found and additions were made asdeemed dividend, whereas in this case, additions were madeunder section 68 based on statements by entry operators, cashtrail, layering of unaccounted money through various boguspapers companies, which were unearthed during search basedon prima facie evidences of clandestine operations adopted byAssessee to evade tax? ii)Whether on facts and circumstances of the case and in law, theLearned Income Tax Appellate Tribunal has erred in notinterfering in the decision of the Commissioner of Income Tax(Appeals) in which the Commissioner of Income Tax (Appeals) hasallowed the appeal of the assessee observing that additions madeby the Assessing Officer in the assessment order passed undersection 153A/143(3) are not based on any incriminatingdocuments/papers seized during the search operation withoutcalling for remand report/comments?Learned Income Tax Appellate Tribunal has erred in notinterfering in the decision of the Commissioner of Income Tax(Appeals) in which the Commissioner of Income Tax (Appeals) hasallowed the appeal of the assessee observing that additions madeby the Assessing Officer in the assessment order passed undersection 153A/143(3) are not based on any incriminatingdocuments/papers seized during the search operation withoutcalling for remand report/comments? It is submitted by the learned Counsel for the respondent/assesseethat the assessee has availed the benefit of the Vivad Se Vishwas scheme andForm 4 has been issued to the assessee on 25[th] October, 2021. In the light of the said development, we are not required to decide thequestions of law framed in this appeal. Accordingly, the appeal standsdisposed of and the substantial questions of law are left open. It is submitted by the learned Counsel for the respondent/assesseethat the assessee has availed the benefit of the Vivad Se Vishwas scheme andForm 4 has been issued to the assessee on 25[th] October, 2021. In the light of the said development, we are not required to decide thequestions of law framed in this appeal. Accordingly, the appeal standsdisposed of and the substantial questions of law are left open. The stay application being IA No.GA 2 of 2021 accordingly standsdisposed of. (T. S. SIVAGNANAM, J.) s.pal/pa. (HIRANMAY BHATTACHARYYA, J.)