Southern Group Industries P Ltd., CHENNAI V. ACIT, CHENNAI

ITA 1146/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8909 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 28-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: G BASKAR
• Keywords: Unexplained cash credit; Additional evidence
• Section: 143(3); 68

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL , C/SMC BENCH, CHENNAI . , ! BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1146/MDS/2016 ( / ASSESSMENT YEAR: 2008-09) M/S. SOUTHERN GROUP INDUSTRIES P.LTD., RAJA ANNAMALAI BUILDING, 72, MARSHALLS ROAD, CHENNAI-600 008. VS THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-6(3), CHENNAI. PAN: AAECS0081Q ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. G.BASKAR, ADVOCATE /RESPONDENT BY : MR. A.V.SREEKANTH, JCIT /DATE OF HEARING : 16 TH JUNE, 2016 /DATE OF PRONOUNCEMENT : 1 ST JULY, 2016 / O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APP EALS)- 15, CHENNAI DATED 04.03.2016 IN ITA NO.282/CIT( A)- 15/13-14 PASSED UNDER SECTION143(3) & 250(6) OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HIS A PPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN SUSTAINING THE ADDITION OF RS.44,70,890/- MADE BY THE LEARNED ASSESSING OFFICER UNDER SECTION 68 OF THE A CT BEING UNEXPLAINED CASH CREDITS. 2 ITA NO.1146 /MDS/2016 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING O F ZIPPER & ZIPPER COMPONENTS FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2008-09 ON 30.09.2008 DECLARING LO SS OF RS.62,75,041/-. THE SCRUTINY ASSESSMENT WAS COMPLET ED UNDER SECTION 143(3) OF THE ACT ON 31.12.2010 ASSE SSING THE LOSS OF THE ASSESSEE AT RS.18,04,151/-. THEREAFTER , THE LEARNED ASSESSING OFFICER NOTICED THAT UNEXPLAINED CASH CREDIT OF RS.44,70,890/- WAS ADJUSTED WITH THE RETU RNED LOSS AND THE ASSESSEE IS NOT ELIGIBLE FOR SET OFF AGAINS T LOSS AS PER SECTION 72 OF THE ACT. THEREFORE, THE UNEXPLAINED C ASH CREDIT ADJUSTED AGAINST LOSS AMOUNTING TO RS.44,70,890/- W AS ADDED TO THE INCOME OF THE ASSESSEE. ON APPEAL, TH E LEARNED COMMISSIONER OF INCOME TAX (APPEALS) CONFIR MED THE ADDITION MADE BY THE LEARNED ASSESSING OFFICER AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE OUTSET, THE LEARNED AUTHORIZED REPRESENTA TIVE SUBMITTED BEFORE US THAT THE ADDITIONAL EVIDENCE SU BMITTED BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (APPE ALS) WAS NOT CONSIDERED WHICH RESULTED IN CONFIRMATION O F THE 3 ITA NO.1146 /MDS/2016 ADDITION. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER SO THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE. THE LEARNED ASSESSING OFFICER FURTHER PLEADED THAT DIRECTIONS M AY BE GIVEN TO THE REVENUE FOR EXAMINING THE FRESH EVIDEN CE SUBMITTED BY THE ASSESSEE. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE STRONGLY OPPOSED TO THE SUBMISSIONS OF THE LEARNED AUTHORIZE D REPRESENTATIVE AND REQUESTED FOR SUSTAINING THE ORD ERS OF THE REVENUE. 6. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PER USED THE MATERIALS AVAILABLE ON RECORD. IT APPEARS FROM THE FACTS OF THE CASE THAT THE ASSESSEE WAS LETHARGIC IN ITS ATT ITUDE BY NOT PRODUCING THE REQUISITE RECORDS BEFORE THE REVENUE AT THE TIME OF HEARINGS. THIS ATTITUDE OF THE ASSESSEE IS NOT APPRECIABLE. HOWEVER IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF THE LEARNED AS SESSING OFFICER FOR FRESH CONSIDERATION WITH DIRECTION TO E XAMINE THE FRESH EVIDENCE SUBMITTED BY THE ASSESSEE AND THERE AFTER 4 ITA NO.1146 /MDS/2016 DECIDE THE MATTER AS PER LAW & MERIT BY AFFORDING S UFFICIENT OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. WE ALSO HEREBY DIRECT THE ASSESSEE TO COOPERATE WITH THE REVENUE I N THEIR PROCEEDINGS IN ORDER TO DISPOSE OF THE MATTER PROMP TLY FAILING WHICH THE REVENUE WILL BE AT LIBERTY TO PROCEED WIT H THE MATTER AS PER LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 1 ST JULY, 2016 SD/- ( . ) ( A.MOHAN ALA NKAMONY ) # / ACCOUNTANT MEMBER % /CHENNAI, & /DATED 1 ST JULY, 2016 SOMU () *) /COPY TO: 1. APPELLANT 2. RESPONDENT 3. + () /CIT(A) 4. + /CIT 5. ) 0 /DR 6. /GF .