M/s IG International, Chandigarh V. JCIT, Chandigarh

ITA 1082/CHANDI/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4535 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 14-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH GUPTA
• Keywords: Additional evidence

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1082/CHD/2016 / ASSESSMENT YEAR : 2011-12 M/S IG INTERNATIONAL, H. NO.294, SECTOR 19B, CHANDIGARH THE JCIT, RANGE V, CHANDIGARH ./PAN NO: AAAFI7829R / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE ' ! / REVENUE BY : SH. ASHISH GUPTA, CIT DR # $ % /DATE OF HEARING : 22.05.2019 &'() % / DATE OF PRONOUNCEMENT : 30.05.2019 ')/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 15.09.2016 OF THE COMMISSIONER OF INCO ME TAX(APPEALS)-2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE ISSUE RAISED IN THIS APPEAL RELATES TO THE CONFIRMATION OF ADDITION OF 78,48,110/- BY THE LD. CIT(A) OUT OF THE TOTAL AD DITION OF 1,33,48,110/- MADE BY THE ASSESSING OFFICER IN RES PECT OF UNSECURED LOANS TAKEN BY THE ASSESSEE. ITA NO. 1082/CHD/2016- M/S I.G. INTERNATIONAL, CHANDIGARH 2 3. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HA D TAKEN UNSECURED LOANS FROM 10 PARTIES TOTALLING 1,33,48,110/- . HE HELD THAT THE ASSESSEE COULD NOT ESTABLISH THE IDENTITY AND CREDI TWORTHINESS OF THE CREDITOR AND THE GENUINENESS OF THE TRANSACTIONS. HE, THEREFORE, TREATED THE AFORESAID UNSECURED LOANS AS UNEXPLAINED CASH C REDITS OF THE ASSESSEE AND MADE THE ADDITION OF THE ABOVE AMOUNT INTO THE INCOME OF THE ASSESSEE. 4. IN APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE FU RNISHED CERTAIN ADDITIONAL EVIDENCES TO PROVE THE IDENTITY, CREDITW ORTHINESS OF THE CREDITORS AND GENUINENESS OF THE TRANSACTIONS. THE LD. CIT(A) CALLED FOR THE REMAND REPORT FROM THE ASSESSING OFFICER I N RESPECT OF THE EVIDENCES SUBMITTED BY THE ASSESSEE. IN THE REMAND REPORT, THE ASSESSING OFFICER REPORTED THAT THE ASSESSEE HAD BE EN ABLE TO PROVE THE IDENTITY, CREDITWORTHINESS OF THE CREDITORS AND GE NUINENESS OF THE TRANSACTIONS IN RESPECT OF 06 PARTIES FROM WHOM THE LOANS IN QUESTION TO THE EXTENT OF 55,00,000/- WERE TAKEN. HOWEVER, IN RESPECT OF TH E REMAINING AMOUNT OF LOAN OF 78,48,110/- RECEIVED FROM 04 PARTIES, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAD NO T FILED COPIES OF THE PAN NO., INCOME TAX RETURNS AND OTHER EVIDENCES TO PROVE THE CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS O F THE TRANSACTIONS. 5. THE LD. CIT(A) ACCORDINGLY SUSTAINED THE ADDITIO N SO MADE TO THAT EXTENT. ITA NO. 1082/CHD/2016- M/S I.G. INTERNATIONAL, CHANDIGARH 3 6. BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUBM ITTED THAT THE ASSESSEE, IN FACT, HAD SUBMITTED THE NECESSARY EVID ENCES AND DETAILS IN RESPECT OF ALL THE PARTIES. THAT EVIDENCES FURNISHE D RELATING TO THE AFORESAID PARTIES PERHAPS ESCAPED THE ATTENTION OF THE ASSESSING OFFICER. THE LD. COUNSEL HAS FURTHER SUBMITTED THAT IF GIVEN AN OPPORTUNITY, THE ASSESSEE IS STILL READY TO FURNISH THE PAN, INCOME- TAX RETURNS AND OTHER EVIDENCES AS MAY BE REQUIRED TO PROVE THE CREDITWOR THINESS OF THE CREDITORS AND GENUINENESS OF THE TRANSACTIONS IN RE SPECT OF THE REMAINING FOUR PARTIES ALSO. 7. CONSIDERING THE ABOVE SUBMISSIONS AND AFTER HEAR ING THE LD. DR, WE ARE OF THE VIEW, THAT THE INTEREST OF JUSTICE WI LL BE SERVED IF ASSESSEE IS GIVEN AN OPPORTUNITY TO FURNISH THE NECESSARY EV IDENCES SUCH AS THE PAN NOS., INCOME TAX RETURNS AND OTHER EVIDENCES, A S MAY BE REQUIRED / CALLED FOR BY THE ASSESSING OFFICER, TO PROVE THE I DENTITY AND CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS O F THE TRANSACTIONS ON RESPECT OF REMAINING 04 PARTIES ALSO. IN VIEW OF THIS, THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR THIS LIMITED PURPOSE. THE ASSESSING OFF ICER WILL GIVE PROPER OPPORTUNITY TO THE ASSESSEE TO FURNISH THE NECESSAR Y EVIDENCE IN RESPECT OF THE UNSECURED LOANS TAKEN BY THE ASSESSEE FROM T HE FOUR PARTIES ITA NO. 1082/CHD/2016- M/S I.G. INTERNATIONAL, CHANDIGARH 4 NAMELY SMT. MOHINI DEVI, SMT. NEETU, SH. L.K. WADHW A AND SHRI VENTESHWARAN AND TO DECIDE THE MATTER AFRESH IN ACC ORDANCE WITH LAW. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30.5.2019 SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 30. 05.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR