Matra Kaushal Enterprises Ltd., Secunderabad V. ACIT, Central Circle- 3, New Delhi

ITA 1010/DEL/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6753 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAKHI ULMAL
• Section: 143(3); 201; 68

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C+SMC : NEW DELHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K.N.CHARY, JUDICIAL MEMBER ITA NO. 1010/DEL/2018 (ASSESSMENT YEAR: 2013 - 14 ) MATRA KAUSHAL ENTERPRSES LTD, FLAT NO. 702 - E, AI KARIM TRADE CENTRE RANIGUNJ, SECURDERABAD PAN: AACCP8660 VS. ACIT, CENTRAL CIRCLE - 3, NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY: MS. RAKHI ULMAL, SR. DR DATE OF HEARING 14/10 / 201 9 DATE OF PRONOUNCEMENT 1 5 / 10 / 2019 O R D E R PER PRASHANT MAHARISHI, A. M. 1 . THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD CIT(A) - 4, HYDERABAD DATED 03.06.2016, WHEREIN, THE ADDITION OF RS. 25 LAKCS MADE BY THE LD AO U/S 68 OF THE ACT ON ACCOUNT OF AMOUNT INVESTED AS SHARE CAPITAL IN THE ASSESSEE COMPANY BY A NOTHER COMPANY. 2 . THE BRIEF FACTS OF THE CASE SHOWS THAT THE ASSESSEE IS A COMPANY ENGAGED IN TRADING OF VOLTAGE STABLIZER. IT FILED ITS RETURN O F INCOME ON 28.09.2013 DECLARING NIL INCOME. IT IS ASSESSED U/S 143(3) ON 31.03.2016 @RS. 25,00,000/ - . 3 . THE LD AO NOTED THAT M/S. KAUSHALYA GLOBAL LIMITED AMALGAMATED WITH THE ASSESSEE COMPANY BY THE ORDER OF HON'BLE HIGH COURT W.E.F 16.09.2012. THE SHARE CAPITAL OF THE AMALGAMATED COMPANY GOT INCREASED AND THE DETAILS WERE ASKED FROM THE ASSESSEE. THE INVESTOR COMPANY M/S. GAWARAJA MERCHANTS PVT. LTD HAVING ADDRESS OF P - 27, PRINCE STREET, 3 RD FLOOR, KOLKATA INVESTED RS. 25 LACS IN TH E SHARE CAPITAL OF THE ASSESSEE COMPANY. ON ENQUIRY , IT WAS FOUND THAT AT THE ADDRESS GIVEN , INVESTOR IS NOT AVAILABLE. THE ASSESSEE ALSO ADMITTED BEFORE THE LD A O THAT THEY ARE NOT IN A POSITION TO FILE ANY CONFIRMATION. THUS, THE ADDITION OF RS. 25 LAKS WAS MADE BY THE MATRA KAUSHAL ENTERPRSES LTD VS ACIT ITA NO.1010/DEL/2018 (ASSESSMENT YEAR: 2013 - 14) PAGE | 2 LD AO AND THE ASSESSMENT ORDER U/S 143(3) OF THE ACT WAS PASSED DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS. 25 LACS. 4 . ASSESSEE AGGRIEVED WITH THE ORDER PREFERRED APPEAL BEFORE THE LD CIT(A). BEFORE HIM ALSO THE ASSESSEE DID NOT FURN ISH ANY CONFIRMATION. HOWEVER, THE ASSESSEE PLEA D ED THAT AT THE TIME OF AMALGAMATION HON'BLE HIGH COURT.. HAS PASSED THE ORDER, THEREFORE, THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION IS SATISFIED. THE LD CIT(A) FOUND THAT THE ASSESSEE ITSELF IS A PENNY STOCK COMPANY AS PER LIST PROVIDED BY THE BOMBAY STOCK EXCHANGE TO THE DIT (INVESTIGATION) , KOLKATA AND NOTED THAT ADDITION DESERVED TO BE CONFIRMED. HOWEVER, HE ALSO GAVE A FINDING THAT THE YEARS IN WHICH MONEY IS RECEIVED , THE ADDITION IS TO BE MADE . THUS HE CONFIRMED THE ADDITION. THE ASSESSEE IS IN APPEAL BEFORE US. 5 . AT THE TIME OF HEARING THE ASSESSEE REQUESTED FOR ADJOURNMENT. HOWEVER, IT WAS NOTED THAT ON EARLIER OC C ASION ALSO THE ASSESSEE HAS SOUGHT ADJOURNMENT AND WHICH WAS LIBERALLY GRANTED BY THE COORDINATE BENCH. REPEATED ADJOURNMENT SOUGHT BY THE ASSESSEE IS MERELY AN ATTEMPT TO KEEP THE APPEALS PENDING. THEREFORE, WE PROCEED TO DECIDE THE ISSUE ON THE MERITS AS PER INFORMATION AVAILABLE ON RECOR D. 6 . THE LD DR VEHEMENTLY SUPPORTED THE ORDER OF THE LOWER AUTHORITIES. 7 . WE HAVE CAREFULLY CONSIDERED THE CONTENTIONS AND ALSO PERUSED THE ORDERS OF THE LOWER AUTHORITIES. APPARENTLY IN THIS CASE THE ASSESSEE HAS RECEIVED SHARE CAPITAL OF RS. 25 LACS FROM O NE COMPANY FOR WHICH THE ASSESSEE COULD NOT ESTABLISH THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. THEREFORE, THE LOWER AUTHORITIES HAVE MADE THE ADDITION U/S 68 OF THE ACT. THE ASSESSEE COULD NOT FURNISH THE CONFIRMATION OF THE DEPOS ITOR. THEREFORE, THE ASSESSEE HAS FAILED TO DISCHARGE INITIAL ONUS CAST UPON IT. FURTHER THE ORDER OF THE LD CIT(A) ALSO NOTED THAT ASSESSEE ITSELF IS A N ENTITY WHICH IS A PENNY STOCK COMPANY. MERELY BECAUSE THERE IS AN ORDER OF THE HON'BLE HIGH COURT OF A MALGAMATION, THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE DEPOSITORS CANNOT ESTABLISHED. IN VIEW OF ABOVE FACTS WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITIES. THUS, THE ADDITION MADE BY THE LD AO OF RS. 25 LACS U/S 68 WITH RES PECT TO THE SHARE CAPITAL IS CONFIRMED. GROUND NO. 1 TO 7 OF THE ARE DISMISSED. MATRA KAUSHAL ENTERPRSES LTD VS ACIT ITA NO.1010/DEL/2018 (ASSESSMENT YEAR: 2013 - 14) PAGE | 3 8 . IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 5 / 10 / 2019 . - SD/ - - SD/ - ( K.N.CHARY ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 5 / 10 / 2019 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI