Rakesh Kumar Agarwal, Kanpur V. Dy. Commissioner of Income Tax-1, Kanpur

CO 18/LKW/2015

• Counselvise Citation: [2016] 112 COUNSELVISE.COM (IT) 4326 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 10-08-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 07-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 133(6); 143(1); 208; 131; 68

Judgement Text

C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 1 N IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI P. K. BANSAL, ACCOUNTANT MEMBER AND SHRI ABY T. VARKEY , JUDICIAL MEMBER ITA NO. 180 / LKW /201 5 DEPUTY COMMISSIONER OF INCOME TAX - 1 KANPUR ASSESSMENT YEAR S : 2010 - 11 VS. SHRI RAKESH KUMAR AGARWAL, PROPL M/S. S. PRODUCTS, 53/30, NAYA GANJ, KAPUR . PAN: - AALPA 8305 R (APPELLANT) (RESPONDENT) C.O. NO. 18/LKW/2015 SHRI RAKESH KUMAR AGARWAL, PROPL M/S. S. PRODUCTS, 53/30, NAYA GANJ, KAPUR. PAN: - AALPA 8305 R IN ITA NO. 180/LKW/2015 VS. DEPUTY COMMISSIONER OF INCOME TAX - 1 KANPUR (APPELLANT) (RESPONDENT) O R D E R 2. LD. COMMISSIONER OF INCOME TAX (APPEALS) - II, KANPUR HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 4,00,00,000/ - MADE ON ACCOUNT OF UNEXPLAINED CREDIT IN THE BOOKS OF ACCOUNT WITHOUT APPRECIATING THE FACT THAT DOCUMENTAR Y EVIDENCES REGARDING CHANGE OF ADDRESS OF THE CREDITOR WERE FILED BY THE ASSESSEE ON 11.03.2013 I.E. JUST FEW DAYS BEFORE THE EXPIRY OF LIMITATION OF SCRUTINY ASSESSMENT IN PER P. K. BANSAL , A .M. THIS APPEAL AS WELL AS C.O. HAS BEEN FILED AGAINST THE ORDER OF THE CIT(A) - II KANPUR , DATED 11.11.2014 FOR A SSESSMENT Y EAR 2010 - 11, B Y TAKING THE FOLLOWING GROUNDS OF APPEAL. 1. LD. COMMISSIONER OF INCOME TAX (APPEALS) - II, KANPUR HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 4,00,00,000/ - MADE ON ACCOUNT OF UNEXPLAINED CREDIT ENTRIES IN THE BOOKS OF ACCOUNT WITHOUT APPRECIATING THE FACT THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE COULD NOT ESTABLISH THE IDENTITY O F THE CREDITOR. APPELLANT BY SHRI AMIT NIGAM , D.R. RESPONDENT BY SHRI P. K. KAPOOR , CA DATE OF HEARING 08.06.2016 DATE OF PRONOUNCEMENT 10.08.2016 C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 2 SPITE OF THE FACT THAT SEVERAL OPPORTUNITIES WERE PROVIDED TO HIM TO PRODUCE THE C REDITOR. 3. LD. COMMISSIONER OF INCOME TAX (APPEALS) - II, KANPUR HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 4,00,00,000/ - MADE ON ACCOUNT OF UNEXPLAINED CREDIT IN THE BOOKS OF ACCOUNT WITHOUT APPRECIATING THE FACT THAT APPLICATION FOR C HANGE OF ADDRESS WAS FILED BY THE ALLEGED CREDITOR BEFORE THE MINISTRY OF CORPORATE AFFAIRS ON 14.02.2013. FURTHERMORE, THE CHANGE OF ADDRESS IN PAN DETAILS OF THE ALLEGED CREDITOR WAS PROCESSED ON 26.02.2013. ALL THESE EVIDENCES REVEAL THAT THESE EXERCISE S WERE MADE BY THE ALLEGED CREDITORS WHEN THE ASSESSEE WAS CORNERED FROM ALL SIDES AND THE INSPECTOR REPORTED THAT THERE WAS NO SUCH COMPANY IN THE GIVEN ADDRESS. 4. LD. COMMISSIONER OF INCOME TAX (APPEALS) - II, KANPUR HAS ERRED IN LAW AND ON FACTS IN NOT APPRECIATING THE FACT THAT THE ASSESSEE ALSO FAILED TO PRODUCE THE DIRECTOR OF LENDER COMPANY. 2 . THE ONLY ISSUE IN THE GROUND TAKEN BY THE REVENUE IS WHETHER ANY ADDITION U/S 68 IN RESPECT OF THE SUM OF RS. 4 CRORES MADE BY THE ASSESSING OFFICER CAN BE SUSTAINED OR NOT. THE FACTS RELATING TO THIS ISSUE ARE THAT THE ASSESSEE SUBMITTED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 18,53,180/ - ON 09.10.2010 THROUGH E - FILING WHICH WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961. SUBSEQUENTLY WHEN THE CASE WAS SELECTED FOR SCRUTINY, THE ASSESSING OFFICER NOTED FROM THE PERUSAL OF THE BALANCE SHEET AS AT 31.03.2010 THAT THE ASSESSEE HAS UNSEC URED LOAN AMOUNTING TO RS. 7,24,78,945/ - . ASSESSEE WAS ASKED TO FURNISH THE DETAILS OF THE UNSECURED LOAN FROM THE DETAILS FURNISHED OF LOAN IN ADVANCE. IT WAS NOTICED THAT A SUM OF RS. 4 CRORES HAS BEEN CREDITED BY THE ASSESSEE IN HIS BOOKS OF ACCOUNT IN THE NAME OF M/S. VEEDAR BARTER PVT. LTD. TO VERIFY THE GENUINENESS OF THE TRANSACTION NOTICES U/S 133(6) OF THE INCOME TAX ACT, 1961 AS WELL AS COMMISSION U/S C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 3 131(1)(D) OF THE I.T. ACT WAS ISSUED TO MS. ADITI ROY, INCOME TAX OFFICER , WARD 2(4), KOLKATA AN D SHRI NOVEL ROY, ADIT (INVESTIGATION) UNIT - 3(1) KOLKATA WITH THE REQUEST TO MAKE INQUIRIES ABOUT THE EXISTENCE OF THE COMPANY NAMELY M/S. VEEDAR BARTER PVT. LTD. THE ASSESSING OFFICER NOTICED THAT THE NOTICE ISSUED U/S 133(6) AT THE ADDRESS 40, STRAND ROA D, KOLKATA RECEIVED BACK UNSERVED WITH THE POSTAL REMARK NOT KNOWN. THE COMMISSION ITO WARD 2(4) KOLKATA VIDE LETTER DATED 14.11.2012 CONFIRM ED THAT THE EXISTENCE OF THE COMPANY M/S. VEEDAR BARTER PVT. LTD. COULD NOT BE TRACED OUT. EVEN COMMISSION A DIT UNIT - 3(1), KOLKATA ALSO CONFIRMED THAT NO SUCH COMPANY M/S. VEEDAR BARTER PVT. LTD. EXISTS AT THE GIVEN ADDRESS 16, GANESH CHANDRA AVENUE, KOLKATA. WHEN ASSESSEE WAS INFORMED, THE ASSESSEE SUBMITTED THE NEW ADDRESS OF THE SAID COMPANY M/S. VEEDAR BARTER PV T. LTD. VIDE ITS LETTER DATED 07.12.2012 AS 8/1, PRINCAP STREET, 3 RD FLOOR, KOLKATA 700 013 AND REQUESTED THE ASSESSING OFFICER TO CONDUCT INQUIRY AT THIS ADDRESS. THE ASSESSING OFFICER DID NOT TAKE COGNIZANCE OF THE NEW ADDRESS AS ACCORDING TO HIM THE ASS ESSEE COULD NOT PRODUCE THE DOCUMENTARY ADDRESS FOR THE CHANGE OF THE ADDRESS VIDE LETTER DATED 07.12.2012. SUMMON U/S 131 OF THE I.T. ACT, 1961 WERE ISSUED TO ONE OF THE DIRECTORS OF M/S. VEEDAR BARTER PVT. LTD. REQUIRING HIM TO APPEAR BEFORE THE ASSESSIN G OFFICER BUT THE DIRECTOR NEITHER APPEARED ON GIVEN DATE NOR FILED ANY REPLY. THE ASSESSING OFFICER THEREFORE, VIDE LETTER DATED 04.03.2013 ISSUED TO THE ASSESSEE ASKED AS TO WHY THE SUM OF C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 4 RS. 4 CRORES SHOULD NOT BE TREATED AS UNEXPLAINED CASH CREDITS. T HE ASSESSEE VIDE LETTER DATED 11.03.2013 SUBMITTED THE DETAIL ED REPLY. THE ASSESSING OFFICER AFTER ASKING THE ASSESSEE TO PRODUCE ONE OF THE DIRECTORS OF THE COMPANY FOR EXAMINATION, U LTIMATELY MADE THE ADDITION U/S 68 OF THE I.T. ACT FOR THE SUM OF RS. 4 CRORES RELYING ON THE DECISION OF SUMATI DAYAL VS. CIT [1995] SUPP. (2) SCC 453, CIT VS. PRECISION FINANCE PVT. LTD 208 ITR 465 AND THAT OF CIT VS. NIPUN BUILDERS & DEVELOPERS PVT. LTD. 350 ITR 407 (DELHI) . 3 . THE ASSESSEE WENT IN APPEAL BEFORE THE LD. CIT(A), THE LD. CIT(A) DELETED THE ADDITION BY OBSERVING AS UNDER: - WE HAVE CONSIDERED THE ARGUMENTS AND SUBMISSIONS OF THE AR OF THE ASSESSEE ALONG WITH THE CONTENTS OF THE ASSESSMENT ORDER. IT IS TRUE THAT THE ASSESSEE HAS RECEIVED THE LOAN/ADVANCE OF RS. 4 CRORES FROM M/S. VEEDAR BARTER PVT. LTD. THE AO HAS MADE ADDITION OF THE SAME ON ACCOUNT OF FAILURE OF THE ASSESSEE TO DISCHARGE THE MANDATORY ONUS OF PROVING THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE TRANSACTIONS. THE CREDITOR WAS NOT FOUND ON THE ADDRESS GIVEN; THEREBY THE AO HAS TREATED THE AMOUNT AS UNEXPLAINED CREDIT ENTRIES U/S 68 OF THE INCOME - TAX ACT, 1961. THE AR OF THE ASSESSEE HAS SUBMITTED THAT THE CHANGE OF THE ADDRESS OF THE CREDITOR HAS BEEN COMMUNICATED TO THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS ON 07.12.2012 WHICH HAS ALSO BEEN MENTIONED IN THE ASSESSMENT ORDER AFTER THE RETURN OF NOTICE U/S 133(6) BACK ON 25.10.2012 ON THE ADDRESS OF M/S. VEEDAR BARTER PVT. LTD. ADDRESSED AT 40 STRAND ROAD, KOLKATA. THE CHANG E OF THE ADDRESS COMMUNICATED TO THE AO IS VEEDAR BARTER PVT. LTD. 3 RD FLOOR, ROOM NO. 10 8/1, PRINCEP STREET, KOLKATA - 700072. THE SUBMISSION OF THE ASSESSEE IN THIS REGARD IS REPRODUCED AS UNDER: - INCOME TAX PAN SERVICES UNIT (MANAGED BY NATIONAL SECURITIES DEPOSITORY LIMITED) S15 FLOOR, SAPPHIRE CHAMBERS, NEAR BANER TELEPHONE EXCHANGE, BANAR PUNE - 411045. YOUR REQUEST FOR CHANGES/CORRECTIONS IN PAN DATA/REPRINT OF PAN CARD HAS BEEN PROCESSED AND NEW PAN CARD IS ENCLOSED. C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 5 WE WISH TO INFORM YOU THAT QUOTING OF PAN ON RETURN OF INCOME AND CHALANS FOR PAYMENT OF TAXES IS NECESSARY TO ENSURE ACCURATE CREDIT OF TAXES PAID BY YOU AND FASTER PROCESSING OF RETURN OF INCOME. PLEASE QUOTE PAN IN ALL COMMUNICATIONS WITH DEPARTMENT AS IT HELPS TO IMPROVE TAX PA YER SERVICES. INCOME TAX DEPARTMENT MAINTAINS A WEBSITE - WWW.INCOMETAXINDIA.GOV.IN AND AYAKAR SAMPARK KENDRA (PHONE - 1800 - 180 - 1961) FOR PROVIDING INFORMATION AND SERVICES TO CITIZENS. THIS SITE CONTAINS DETAILED INFORMATION ON PAN ALSO. PKGID:PIC 00098/26C22013 OVBU) MILL MILL 111 IIII I III IIMII INI III WBGM02/201404010399755191 I 86402916 VEEOAR BARTER PRIVATE LIMITED VEFDAR BARTER PRIVATE LIMITED 3 RD FORM 18 NOTICE OF SITUATION OF REGISTERED OFFICE {PURSUANT TO SECTION 146 OF THE COMPANIES ACT, 1956 ] FLOOR ROOM NO. 10 8/1 PRINCEP STREET KOLKATA WEST BENGAL - 700072 TEL NO. 91 - 9051627184 (THIS BE ING A COMPUTER GENERATED LETTER NO SIGNATURE IS REQUIRED ) THE AR OF THE ASSESSEE IS ALSO SUBMITTED FORM NO. 18 FOR CHANGE OF ADDRESS SUBMITTED TO THE REGISTRAR OF COMPANIES, WEST BENGAL WHICH IS AS UNDER: - FORM LANGUAGE @ ENGLISH NOTE - ALL FIELDS MARKED IN * ARE TO BE MANDATORILY FILLED. 1 ' THIS FORM IS FOR Q NEW COMPANY EXISTING COMPANY 2. (A) * FORM 1A REFERENCE NUMBER (SERVICE REQUEST NUMBER (SRN) OF FORM 1A) OR CORPORATE IDENTITY NUMBER (CIN) OF COMPANY (B) GLOBAL LOCATION NUMBER (GLN) OF COMPANY U51909W81994PTC066053 - PRE - FILL | 3 - (A) NAME OF THE COMPANY (B) ADDRESS OF THE REGISTERED OFFICE OF THE C OMPANY VEEDAR BARTER PVT.LTD. 40, STRAND ROAD, KOLKATA WEST BENGAL INDIA 700001 (C) NAME OF OFFICE OF EXISTING REGISTRAR OF COMPANIES (ROC) REGISTRAR OF COMPANIES, WEST BENGAL (D) PURPOSE OF THE FORM CHANGE WITHIN LOCAL LIMITS OF CITY, TOWN OR VILLAGE O CHANGE OUTSIDE LOCAL LIMITS OF CITY, TOWN OR VILLAGE O CHANGE IN OFFICE OF ROC WITHIN SAME STATE O CHANGE IN STATE WITHIN OFFICE OF SAME ROC CHANGE IN STATE OUTSIDE OFFICE OF EXISTING ROC 4. NOTICE IS HEREBY GIVEN THAT (A) THE AD DRESS OF THE REGISTERED OFFICE OF THE COMPANY WITH EFFECT FROM ' (DD/MM/YYYY) IS 0 THE DATE OF INCORPORATION OF THE COMPANY IS 27/11/2012 8/1 PRINCEP STREET 3RD FLOOR ROOM NO 10 C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 6 'ADDRESS LINE I LINE II 'CITY I KOLKATA' ' DISTRICT KOLKATA * STATE WEST BENGAL - WB INDIA 700072 - 'VEEDAR_ [e-mail] (B) . * REGISTERED OFFICE IS - O OWNED BY COMPANY O OWNED BY DIRECTOR (NOT TAKEN ON LEASE BY COMPANY) (') TAKEN ON LEASE BY COMPANY Q OWNED BY ANY OTHER ENTITY/ PERSON (NOT TA KEN ON LEASE BY COMPANY) (C) 'NAME OF OFFICE OF PROPOSED ROC OR NEW ROC REGISTRAR OF COMPANIES. WEST BENGAL (D) THE FULL ADDRESS OF THE POLICE STATION UNDER WHOSE JURISDICTION THE REGISTERED OFFICE OF THE COMPANY IS SITUATED NAME IBOWBAZAR THANA AD DRESS LINE I IBOWBAZAR LINE II COUNTRY *PIN CODE *E - MAIL ID PAGE 1 OF 2 *CITY [KOLKATA *STAT WEST BENGAL - W8 PIN CODE 700072 FROM THE ABOVE, IT APPEARS THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAD COMMUNICATED THE CHANGE OF THE ADDRESS OF THE CREDITORS M/S. VEEDAR BARTER PVT. LTD. THE AR OF THE ASSESSEE HAS ALSO SUBMITTED THAT THE LOAN OF RS. 4 CRORES HAS BE EN RECEIVED VIDE ACCOUNT PAYEE CHEQUE FROM THE BANK ACCOUNT NO. 121903 OF BANK OF RAJASTHAN LTD. STRAND ROAD, KOLKATA WHICH ARE AS UNDER: - SL NO. AMOUNT CHEQUE NO. DATE 1 RS. 52,00,000/ - 312763 26 TH OCTOBER, 2009 2 RS. 48,00,000/ - 312764 27 TH OCTOBER, 2009 3 RS. 51,50,000/ - 312765 27 TH OCTOBER, 2009 4 RS. 48,50,000/ - 312766 27 TH OCTOBER, 2009 5 RS. 50,00,000/ - 312794 29 TH MARCH, 2010 6 RS. 50,00,000/ - 312793 29 TH MARCH, 2010 7 RS. 50,00,000/ - 312795 30 TH MARCH, 2010 8 RS. 50,00,000/ - 312796 30 TH MARCH, 2010 C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 7 RS. 4,00,00,000/ - THE STATEMENT OF THE ABOVE BANK ACCOUNT FOR THE PERIOD 16.03.2009 TO 31.03.2010 HAS BEEN SUBMITTED. THE BANK STATEMENT DOES NOT SHOW EITHER CASH DEPOSIT OR THE CASH WITHDRAWALS. THE DEPOSITS TO THE BANK ACCOUNT HAVE GENERALLY BEEN MADE BY TRANSFER ENTRIES. THEREFORE, THE AR OF THE ASSESSEE HAS EMPHASIZED THAT THE CREDITWORTHINESS OF THE TRANSACTIONS ARE BEYOND DOUBT. HE HAS ALSO SUBMITTED THE RETURN OF INCOME FILED BY M/S. VEEDAR BARTER PVT. LTD WITH ITO WARD - 2(4), KOLKATA ON 28.09.2010 FOR THE ASSESSMENT Y EAR 2010 - 11. THE COPY OF AUDITED BALANCE SHEET IS ALSO SUBMITTED WHICH SHOWS THE CURRENT ASSETS, LOANS AND SUNDRY DEBTORS, SCHEDULE C SHOWING ADVANCE OF RS. 4,00,00,000/ - TO M/S. S. PRODUCTS PROPRIETARY CONCERN OF SHRI RAKESH KUMAR AGARWAL. THE PERUSAL O F BALANCE SHEET SHOWS THE RESERVE AND SURPLUS AT RS. 24,35,40,000/ - WHICH IS CARRIED FORWARD FROM THE PREVIOUS YEAR AND DOES NOT HAVE ANY SECURED AND UNSECURED LOANS. THEREBY, THE INTEREST FREE AMOUNTS AVAILABLE WITH M/S. VEEDAR BARTER PVT. LTD. IS RS. 24, 60,00,200/ - WHICH IS AS UNDER: - 1. SHARE CAPITAL RS. 24,60,200/ - 2. RESERVE & SURPLUS RS. 24,60,00,200/ - THE ABOVE ANALYSIS OF AVAILABILITY OF FUNDS WITH M/S. VEEDAR BARTER PVT. LTD ALSO PROVES THE CREDITWORTHINESS OF THE TRANSACTIONS OF LOAN/ADVANCE OF RS. 4,00,00,000/ - . THE AR OF THE ASSESSEE HAS FURTHER SUBMITTED THAT THE LOAN/ADVANCE OF RS. 4,00,00,000/ - HAVE BEEN REPAID BACK TO M/S. VEEDAR BARTER PVT. LTD. IN FI NANCIAL YEAR 2011 - 12 AND THE DETAILS OF THE SAME ARE AS UNDER: - RS. 24,35,40,000/ - SL NO. AMOUNT CHEQUE NO. DATE 1 RS. 40,00,000/ - 110474 29.02.2012 2 RS. 40,00,000/ 110475 29.02.2012 3 RS. 40,00,000/ 110476 29.02.2012 4 RS. 40,00,000/ 110477 29.02.2012 C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 8 5 RS. 40,00,000/ 110478 29.02.2012 6 RS. 40,00,000/ 110497 13.03.2012 7 RS. 40,00,000/ 110498 13.03.2012 8 RS. 40,00,000/ 110499 13.03.2012 9 RS. 40,00,000/ 110500 13.03.2012 10 RS. 40,00,000/ - 110501 13.03.2012 RS. 4,00,00,000/ - FROM THE ABOVE, IT IS CLEAR THAT THE LOAN/ADVANCE HAS BEEN TAKEN BY CHEQUES AND RETURNED BACK BY CHEQUES ONLY. THE TE MPORARY ARRANGEMENT OF THE LOAN WAS BUSINESS COMPULSION AND NECESSARY. INSPITE OF ALL THESE DETAILS SUBMITTED DURING THE COURSE OF ASSESSME NT PROCEEDINGS, THE AO HAS FAILED TO APPRECIATE THE SAME AND HAS TAKEN A DECISION AGAINST THE ASSESSEE WITHOUT BRINGING ANY EVIDENCE AGAINST SAID TRANSACTIONS. THE AR OF THE ASSESSEE HAS REEMPHASIZED THAT THERE IS NO SHADOW TRANSACTION AGAINST THE LOAN/ADV ANCE OF RS.4,00,00,000/ - AND HAVE EXPLAINED AND ESTABLISHED WITH THE COMPLETE DETAILS OF IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE TRANSACTIONS. THE ASSESSEE HAS DISCHARGED HIS ONUS OF EXPLAINING AND ESTABLISHING THE CREDIT ENTRIES OF TRANSACTIONS OF LOAN/ADVANCE OF RS. 4,00,00,000/ - . THE ARGUMENTS PLACED BY THE AR OF THE ASSESSEE ARE SUPPORTED BY THE VARIOUS CASE LAWS AS DISCUSSED. IN APPRECIATION OF THE ABOVE DETAILS AND EVIDENCE, THE LOAN/ADVANCE TRANSACTIONS OF RS. 4,00,00,000/ - STAND EXPLAINED AND ESTABLISHED. THEREBY, THE ADDITION OF RS. 4,00,00,000/ - U/S 68 IS HEREBY DELETED. SUCH DISCHARGE OF HIS ONUS HAS ALSO BEEN APPRECIATED AND RECOGNIZED BY THE HONBLE ITAT, AHMEDABAD IN THE CASE OF ITO VS. ANKUSH FINSTOCK LTD. 77DTR 143 (ITAT - AHD) 2012 WHEREIN THE ONUS OF THE ASSESSEE HAS BEEN TREATED AS DISCHARGED AND THE ADDITION HAS BEEN DELETED. THE VARIOUS HIGH COURTS LIKE HONBLE CHHATISGARH IN THE CASE OF CIT VS. SHRI ABDUL AZIZ, 212 - TIOL - 180 - HC - CHATTISGARH, HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. MAYAWATI, 338 ITR 563 (DEL) 2011, CIT VS. DWARIKADISH INVESTMENT PVT. LTD. 330 ITR 298 (DEL) 2011, CIT VS. KAMDHENU STEEL & ALLOYS LTD. 2012 - TIOL - 236 - HC - DEL - IT, CIT VS. KINETIC CAPITAL FINANCE LTD. 2011 - TIOL - 584 - HC - DEL - IT AND HONBLE RAJASTHAN HIG H COURT IN THE CASE OF CIT VS. ARUN KUMAR KOTHARI, 254 CTR 648 (RAJ). 2012 AND THE HONBLE C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 9 JURISDICTIONAL ALLAHABAD HIGH COURT IN THE CASE OF LDK SHARES AND SECURITIES PVT. LTD. 71 DTR 371 (ALLD) 2012, WHEREIN THE ONUS OF THE ASSESSEE HAS BEEN TREATING AS DISCHARGED. THE HONBLE GURARAT HIGH COURT IN THE CASE OF HINDUSTAN INK AND RAZING LTD. VS. DCIT 60 DTR 18 (GUJ) 2011 HAS DELETED THE ADDITIONS TREATING THE ONUS OF THE ASSESSEE DISCHARGED ON SUBMISSION OF NAME, ADDRESS AND BANK ACCOUNT OF THE CREDITORS. T HE HONBLE ANDHRA PRADESH HIGH COURT IN THE CASE OF CIT VS. DR. KODELA SHIVA PRASAD RAI, 95 DTR 389 (AP) 2013 WHEREIN THE ONUS OF THE ASSESSEE HAS BEEN TREATED AS DISCHARGED ON SUBMISSION OF THE COPY OF THE RETURN ON INCOME OF THE DONOR AND THEIR ADDRESSES , AND THE ADDITION U/S 68 HAS BEEN DELETED. ON OVERALL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN APPRECIATION OF THE DETAILS AND EVIDENCES SUBMITTED BY THE AR OF THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND ALONGWITH VARIOUS DECISIONS REACHED BY THE HONBLE HIGH COURT (SUPRA), THE ADDITION OF UNEXPLAINED CREDIT IS HEREBY DELETED. 4 . WE HAVE HEARD RIVAL SUBMISSION AND CAREFULLY CONSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW. WE NOTED THAT SECTION 68 OF THE I.T. ACT LAYS DOWN RULE OF LAW BY WHICH IF ANY SUM IS FOUND CREDITED IN THE BOOKS OF THE ASSESSEE MAINTAINED FOR ANY PREVIOUS YEAR AND ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE THEREOF OR THE EXPLANATION OFFERED BY THE AS SESSEE IS NOT IN THE OPINION OF THE ASSESSING OFFICER SATISFACTORY THE SUM SO CREDITED MAY BE CHARGE D TO THE INCOME TAX AS INCOME OF THE ASSESSEE OF THAT PREVIOUS YEAR. IN THIS CASE WE NOTED NO DOUBT THE ASSESSEE HAS RECEIVED A SUM OF RS. 4 CRORES ON DIFFE RENT DATES FROM M/S. VEEDAR BARTER PVT. LTD. THE ASSESS EE HAS SUBMITTED THE ADDRESS OF THE COMPANY AS WAS IN HIS RECORD WHEN HE RECEIVED THE AMOUNT AS 40, STRAND ROAD, KOLKATA BUT AT THIS ADDRESS THE NOTICE/SUMMON SENT BY THE ASSESSING OFFICER RETURNED U NSERVED. THE ASSESSEE SUBSEQUENTLY WHEN THE SHOW CAUSE NOTICE WAS ISSUED BY THE ASSESSING OFFICER WHY AN ADDITION OF RS. 4 CRORES SHOULD NOT BE MADE IN HIS RECORD SUBMITTED THE NEW ADDRESS OF THE SAID COMPANY VIDE HIS LETTER DATED 07.12.2012 AS 8/1, PRINCA P STREET, 3 RD FLOOR ROOM NO. 10 KOLKATA. THE ASSESSING OFFICER DID NOT C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 10 BOTHER TO MAKE AN INQUIRY OR ISSUE ANY SUMMON OR NOTICE AT THE SAME ADDRESS PROVIDED BY THE ASSESSEE. EVEN THOUGH THERE WAS SUFFICIENT TIME AVAILABLE WITH THE ASSESSING OFFICER FOR COMP LETING THE ASSESSMENT, THE ASSESSMENT WAS GOING TO BE TIME BARRED ON 31.03.2013. WE NOTED THAT THE LD. CIT(A) WHILE DELETING THE ADDITION APPRECIATED THIS FACT AND HAS ALSO APPRECIATED THE FORM NO. 18 WHICH IS TO BE FILED BEFORE THE REGISTRAR OF THE COMPAN IES IN CASE THE ADDRESS OF THE REGISTERED OFFICE OF THE COMPANY IS CHANGED. THE COPY OF FORM NO. 18 HAS DULY BEEN RE PRODUCED BY THE CIT(A) IN HIS FINDING GIVING IN THE PRECEDING PARAGRAPH. THIS FORM 18 CLEARLY DENOTES THAT THE ADDRESS OF THE COMPANY HAS BE EN CHANGED FROM 40, STRAND ROAD KOLKATA TO 8/1, PRINCAP STREET 3 RD FLOOR ROOM NO. 10 THE SITE OF THE REGISTRAR COMPANY OFFICE IS IN THE PUBLIC DOMAIN AND ANY PERSON THROUGH INTERNET CAN LOOK INTO THIS. THE LD. CIT(A) HAS APPRECIATED FACTS OF THE CASE AND G IVEN A DETAILED AND EXHAUSTED FINDING . T HE ORDER OF THE LD. CIT(A) IN OUR VIEW IS WELL REASON ED , THE LD. CIT(A) HAS DEALT WITH AND CAME TO THE CONCLUSION THAT THE ASSESSEE HAS DISCHARGED HIS ONUS IN RESPECT OF IDENTITY CREDITWORTHINESS AND GENUINENESS OF T HE TRANSACTION. IT HAS NOT DENIED BY THE LD. DR THAT THE ADDRESS OF THE COMPANY HAS DULY BEEN CHANGED. M/S. VEEDAR BARTER PVT. LTD. WAS HAVING RESERVE AND SURPLUS TO THE EXTENT OF RS. 24,35,40,000/ - ON 31.03.2010 AND THEREFORE, HIS CREDITWORTHINESS COULD N OT BE DOUBTED . N OT ONLY THIS , W E NOTED ALL THE PAYMENTS HAVE BEEN RECEIVED BY THE ASSESSEE THROUGH BANKING CHANNELS . T HE BANK STATEMENT OF THE SAID COMPANY DOES NOT SHOW EITHER CASH DEPOSIT OR CASH WITHDRAWN. THE COMPLETE LOANS HAVE BEEN REPAID THROUGH BAN K BY THE ASSESSEE TO M/S. VEEDAR BARTER PVT. LTD. DURI NG THE ASSESSMENT YEAR 2 012 - 13 THROUGH VARIOUS CHEQUES, THE DETAILS OF WHICH ARE GIVEN IN THE ORDER OF THE LD. CIT(A) AT PAGE 14. GENUINITY OF TRANSACTION IS ALSO PROVED. THUS THE ASSESSEE HAS DULY DISC HARGED ONUS LAY ON HIM. C.O. 18/LKW/2015 IN I.T.A. NO. 180 / LKW / 15 ASSESSMENT YEAR: 2010 - 11 11 5 . THE LD. DR COULD NOT BROUG HT TO OUR KNOWLEDGE ANY COGENT MATERIAL OR EVIDENCE WHICH MAY COMPEL US TO REVERSE THE FINDING GIVEN BY THE L D. CIT(A) . LD. CIT(A) HAS GIVEN FINDING OF FACT . 6. W E, THEREFORE, ARE OF THE VIEW THAT THERE IS NO ILLEGALITY OR INCONFORMITY IN THE ORDER OF THE LD. CIT(A) DELETI NG THE ADDITION OF RS. 4 CRORES WHICH MAY WARRANT OUR INTERFERENCE. WE ACCORDINGLY CONF IRM THE ORDER OF THE LD. CIT(A). C.O. SINCE NOT PRESSED S TAND DISMISSED AS NOT PRESSED. 7 . IN THE RESULT, APPEAL FILED BY THE REVENUE AS WELL AS C.O. OF THE ASSESSEE STANDS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 10.08.2016. ) SD/ - SD/ - ( ABY T. VARKEY ) ( P. K. BANSAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10.08.2016 *S HARAD COPY OF THE ORDER FORWARDED TO 1. : THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT . REGISTRAR