Assessee wins appeal for fresh assessment due to lack of proper opportunity.

The Tribunal allowed the appeal of the assessee for statistical purposes, directing a fresh assessment by the Assessing Officer after providing a reasonable opportunity for the assessee to present its case. The Tribunal found that the assessee did not receive a proper opportunity to present its case during the reassessment proceedings, setting aside the order of the Ld. CIT(A) and remanding the matter back to the AO for a de novo assessment.

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Issues Involved:
1. Validity of the addition of share application money along with premium under Section 68 of the Income Tax Act.
2. Adequacy of the opportunity provided to the assessee during the assessment proceedings.

Issue-Wise Detailed Analysis:

1. Validity of the Addition under Section 68:
The assessee company was incorporated on 15.09.2010, and the assessment year 2011-12 was its first period of operation. The company declared a total income of Rs. 2851 and issued shares with a face value of Rs. 1 at a premium of Rs. 99. The AO added the entire share application money along with the premium amounting to Rs. 91,35,00,000 under Section 68, citing the non-appearance of the directors for recording statements on oath. The Ld. CIT(A) confirmed this action.

The assessee argued that the share applicants were group concerns and common directors, thereby establishing their identity. The assessee provided extensive documentation, including shareholder lists, share applications, bank statements, and financial statements, to substantiate the transactions. The AO's addition was based on the non-compliance of the directors with the summons, despite the short notice period provided.

2. Adequacy of the Opportunity Provided:
The Tribunal noted that the summons issued under Section 131 were served on 19.03.2014, with a directive for appearance on 20.03.2014, allowing insufficient time for compliance. The Tribunal cited the Supreme Court's decision in Tin Box Company Vs. CIT, emphasizing that the assessment order must be made after the assessee has been given a reasonable opportunity to present its case. The Tribunal also referenced the Delhi High Court's decision in CIT Vs. Jansampark Advertising & Marketing Pvt. Ltd., which highlighted the necessity of a thorough inquiry by the authorities.

The Tribunal concluded that the assessee did not receive a proper opportunity to present its case during the reassessment proceedings. Consequently, the Tribunal set aside the order of the Ld. CIT(A) and remanded the matter back to the AO for a de novo assessment, ensuring compliance with the principles of natural justice.

Conclusion:
The appeal of the assessee was allowed for statistical purposes, with the Tribunal directing a fresh assessment by the AO after providing a reasonable opportunity for the assessee to present its case. The order was pronounced in the open court on 31/10/2018.

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