AALOK DEEP ENTERTAINMENTS PRIVATE LIMITED,BHOPAL V. INCOME TAX OFFICER-1(1), BHOPAL

ITA 436/IND/2023

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Aalok Deep Entertainments Pvt. Ltd. appealed against the order of the Commissioner of Income-Tax (Appeals) which upheld the addition of Rs. 1,22,61,800 as unexplained cash credit under section 68 of the Income-tax Act, 1961. The addition was initially made by the Assessing Officer (AO) after finding discrepancies in the statements and bank transactions related to the share application money received from Shri R.K. Sharma. The Tribunal noted that the assessee had now provided additional evidence that was not available during the first appeal due to the death of Shri R.K. Sharma, and remanded the case back to the CIT(A) for a fresh examination of the facts and evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778095 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 06-11-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEATFIRSTSUBMITTEDTHATTHEAOISCORRECTIN; FORREVENUEAGREESWITHTHEPRAYEROFLD.ARBUTMAKESA; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIGAGANTIWARI
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 143(3); 68; 234B

Judgement Text

"Page 1 of 12 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.436/Ind/2023 Assessment Year:2011-12 Aalok Deep Entertainments Pvt. Ltd., G-2/119A, Gulmohur Colony, Trilanga Road, Bhopal बनाम/ Vs. ITO-1(1) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN:AAFCA8883P Assessee by Shri Gagan Tiwari, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 09.10.2025 Date of Pronouncement 10.10.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 22.09.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 27.03.2014 passed by learned ITO-1(1), Bhopal [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2011-12, the assessee has filed this appeal on following grounds: Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 2 of 12 “1. That on the facts and in the circumstances of the case and in law the findings and the decision of the Ld. CIT(A) in sustaining the addition of Rs. 1,22,61,800/- u/s 68 are unlawful and unjustified and therefore the findings be quashed and it be held that the addition is unlawful and therefore be deleted. 2. That on the facts and in the circumstances of the case and in law it be held that the assessee had discharged its burden u/s 68 of the I.T. Act and therefore the addition of Rs. 1,22,61,800 and hence the addition of Rs. 1,22,61,800 be deleted. 3. That on the facts and in the circumstances of the case and in law it be held that sum of Rs. 1,21,61,800 do not represent in any manner the unexplained credit/ income of the assessee and therefore the addition of Rs. 1,22,61,800 be kindly deleted. 4. That on the facts and in the circumstances of the case and in law the levy of interest u/s 234A and 234B is unlawful and without jurisdiction and therefore be cancelled.” 2. The background facts leading to present appeal are such that the assessee-company filed its return of AY 2011-12 declaring a total income of Rs. Nil. The case of assessee was selected for scrutiny and statutory notices u/s 143(2)/142(1) were issued. During proceedings, the AO observed that the assessee-company received share application money of Rs. 1,22,61,800/- from Shri R.K. Sharma. In order to verifying genuineness of transactions, the AO made queries from assessee and also recorded statements of Shri R.K. Sharma u/s 131, the AO has re-produced statements in Para 4 of assessment-order. Shri R.K. Sharma stated to have taken loans from M/s Avinash Chalana & Co. for making investment in share capital of assessee. However, on verification of bank statement of Shri Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 3 of 12 R.K. Sharma, the AO observed that he received loans from M/s Gulmohar Traders and not from M/s Avinash Chalana & Co. The AO, therefore, being unsatisfied with explanation, concluded that the assessee-company had failed to establish genuineness of receipt of share application money. Ultimately, the AO made an addition of Rs. 1,22,61,800/- as unexplained cash credit u/s 68 and completed assessment. Aggrieved, the assessee carried matter in first-appeal but did not get any success. Now, the assessee has come in next appeal before us. 3. Ld. AR for assessee at first submitted that the AO is correct in observing that Shri R.K. Sharma took loans from M/s Gulmohar Traders, there is no mistake in observation of AO. So far as Shri R.K. Sharma’s statement to have received loans from M/s Avinash Chalana & Co. is concerned, Ld. AR submitted that Shri R.K. Sharma took loans from multiple persons for making investment in multiple shares and there was a memory mistake as to the exact source for making investment in assessee- company. But the fact remains that Shri R.K. Sharma took loans through banking channel from M/s Gulmohar Traders and utilised the same for making investment in assessee. He submitted that there is nothing hidden, everything is clear-cut from bank statements of Shri R.K. Sharma and other documentary evidences. 4. Ld. AR next submitted that Shri R.K. Sharma expired on 28.08.2019 (death certificate is filed) and owing to that reason the assessee was not able to collect and submit evidences/documents of Shri R.K. Sharma to CIT(A) Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 4 of 12 during first-appeal which has led the CIT(A) to uphold the addition made by AO. However, the assessee has now collected all requisite evidences and filed the same by way of an Application under Rule 29 of Income-tax Appellate Tribunal Rules, 1963. The Application filed by assessee/Ld. AR is scanned and re-produced below: B Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 5 of 12 Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 6 of 12 Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 7 of 12 Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 8 of 12 Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 9 of 12 Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 10 of 12 Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 11 of 12 5. Ld. AR submitted that the requisite evidences/documents are also filed at Pages 44 to 78 of Paper-Book and the assessee is further ready and willing to make a proper representation before CIT(A) if an opportunity is given and prays that the present matter should be remanded to the file of CIT(A) for a proper adjudication of the grounds/issues raised by assessee in first-appeal. 6. Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before CIT(A) and do not seek unnecessary adjournments. 7. In view of above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of CIT(A), we remand this matter back to the file of CIT(A) for adjudication afresh after examining of evidences filed by assessee and further submissions as may be made by assessee. Needless to mention that the CIT(A) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by CIT(A) and do not seek unnecessary adjournments failing which the CIT(A) shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. Printed from counselvise.com Aalok Deep Enrtainmnts Pvt. Ltd. ITA No. 436/Ind/2023 - AY 2011-12 Page 12 of 12 8. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 10/10/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 10/10/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "