Marlin Infrastructures Private Limited , Hyderabad V. Income Tax Officer, Ward-16(3), Hyderabad

ITA 1047/Hyd/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8761 (ITAT-HYDERABAD)
• Duration Of Justice: 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2015-2016
• Appeal Filed On: 25-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. APARNA
• Keywords: Application of stay; Additional evidence
• Section: 68

Judgement Text

ITA NO 1047 AND SA NO 164 OF 2019 MARLIN INFRASTRUC TURES P LTD HYDERABAD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1047 & S.A. NO.164/HYD/2019 (ASSESSMENT YEAR: 2015-16) M/S. MARLIN INFRASTRU CTURES PRIVATE LIMITED, HYDERABAD PAN: AAECM4935B VS INCOME TAX OFFICER WARD 16(3) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI T.RAJENDRA PRASAD FOR REVENUE : SMT. V. APARNA, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2015-16 AGAIN ST THE ORDER OF THE CIT (A)-4, HYDERABAD, DATED 14.03. 2019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY, ENGAGED IN THE BUSINESS OF INFRASTRUCTURE DEVELOPME NT, FILED ITS RETURN OF INCOME FOR THE A.Y 2015-16 ON 29.09.2015 DECLARING AN INCOME OF RS.15,61,140/-. DURING THE ASSESSMENT PRO CEEDINGS U/S 143(3), THE ASSESSEE WAS REQUIRED TO FILE CERTA IN INFORMATION. THE ASSESSEE FILED THE REQUIRED INFORMATION AND ALS O PRODUCED THE BOOKS OF ACCOUNT. THE AO HOWEVER, NOTICED FROM THE BALANCE SHEET THAT THE ASSESSEE COMPANY RECEIVED AN AMOUNT OF RS.3,33,28,456/- TOWARDS UNSECURED BORROWINGS DURIN G THE FINANCIAL YEAR 2014-15. THEREFORE, THE ASSESSEE WAS ASKED TO DATE OF HEARING : 09.07.2019 DATE OF PRONOUNCEMENT : 12.07.2019 ITA NO 1047 AND SA NO 164 OF 2019 MARLIN INFRASTRUC TURES P LTD HYDERABAD. PAGE 2 OF 4 FURNISH THE DETAILS LIKE IDENTITY OF THE PERSON ALO NG WITH PAN, GENUINENESS OF THE TRANSACTIONS WITH BANK A/C STAT EMENTS AND CREDIT WORTHINESS OF THE CREDITORS ALONG WITH THEIR SOURCES OF FUNDS ETC., THE ASSESSEE COMPANY FILED THE DETAILS SUCH AS CONFIRMATION LETTER OF THE PARTIES. THE AO FOUND TH AT THE PAN AS WELL AS THE ADDRESSES OF THE PERSONS WERE MENTIONED BUT THE BANK STATEMENTS AND ASSESSMENT PARTICULARS OF THE LENDER S WERE NOT SUBMITTED. THEREFORE, HE WAS OF THE OPINION THAT TH E PROVISIONS OF SECTION 68 OF THE ACT ARE APPLICABLE. THEREAFTER, T HE AO OBSERVED THAT THE ASSESSEE WAS ABLE TO EXPLAIN THE IDENTITY AND CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS O F THE TRANSACTIONS ONLY WITH S/SHRI MUTHALA SATISH, GANGA DHAR DASARI AND DORABABU MADIREDDY FOR A TOTAL SUM OF RS.26,23, 000/-. HE THEREFORE, TREATED THE BALANCE OF RS.3,07,05,956/- AS UNEXPLAINED AND UNSECURED BORROWINGS AND CREDITED TO THE BOOKS OF ACCOUNT AND ADDED BACK TO THE INCOME RETURNED BY THE ASSESS EE COMPANY. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO CONFIRMED THE ORDER OF THE AO AND THE ASSESSEE IS I N FURTHER APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE HAS FILED A PAPER BOOK AND ALSO AN APPLICATION TO ADMIT THE ADDITIONA L EVIDENCE WHICH WAS NOT PRODUCED BEFORE THE AO OR BEFORE THE CIT (A) DUE TO LACK OF TIME. IT IS SUBMITTED THAT THIS EVIDENCE IS NECESSARY AND VITAL FOR DECIDING THE APPEAL AND CONTAINS THE PAN NOS, CONFIRMATION LETTERS OF ALL THE OTHER CREDITORS ALO NG WITH THEIR LEDGER EXTRACTS AND ALSO PATTEDAR PASS BOOKS OF THE AGRICULTURISTS WHO HAVE GIVEN LOANS TO THE ASSESSEE. HE SUBMITTED THAT THE ADDITIONAL EVIDENCE PROVES THE GENUINENESS OF THE T RANSACTIONS ITA NO 1047 AND SA NO 164 OF 2019 MARLIN INFRASTRUC TURES P LTD HYDERABAD. PAGE 3 OF 4 AND CREDITWORTHINESS OF THE CREDITORS AND THEREFORE , HE PRAYED FOR REMITTANCE OF THE MATTER TO THE FILE OF THE AO FOR RECONSIDERATION. 4. THE LEARNED DR WAS ALSO HEARD WHO SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE AO HAS CONSIDERED AND A CCEPTED THE IDENTITY AND CREDITWORTHINESS OF THREE OF THE CREDI TORS ONLY. THE ASSESSEE HAS NOW FILED THE RELEVANT EVIDENCE IN THE FORM OF ADDITIONAL EVIDENCE IN RESPECT OF ALL THE OTHER LEN DERS. THEREFORE, WE DEEM IT FIT AND PROPER TO ADMIT AND REMAND THE S AME TO THE FILE OF THE AO FOR DE NOVO CONSIDERATION IN ACCORDA NCE WITH LAW. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE GIVE N A FAIR OPPORTUNITY OF HEARING. 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. 7. SINCE THE APPEAL OF THE ASSESSEE HAS BEEN DISPOS ED OF, THE STAY APPLICATION FILED BY THE ASSESSEE HAS BECO ME INFRUCTUOUS AND IT IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH JULY, 2019. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 12 TH JULY, 2019. VINODAN/SPS ITA NO 1047 AND SA NO 164 OF 2019 MARLIN INFRASTRUC TURES P LTD HYDERABAD. PAGE 4 OF 4 COPY TO: 1 M/S. MARLIN INFRASTRUCTURE (P) LTD., PLOT NO.1071 , ROAD NO.44, JUBILEE HILLS, HYDERABAD 500034 2 ITO WARD 16(3) BLOCK 1B, 1 ST FLOOR, IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD 500004 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER