Income Tax Officer Ward-1(1)(2), Bangalore V. M/s Ambika Bullion Trading Private Limited , Bangalore

ITA 115/BANG/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6000 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-09-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 18-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Additional evidence; Set aside
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER IT A NO . 115/BANG/2019 ASSESSMENT YEAR : 2015 - 16 THE INCOME TAX OFFICER, WARD 1(1)(2), BENGALURU. VS. M/S. AMBIKA BULLION TRADING PVT. LTD., NO.1, MDP MARKET, BETTAPPA LANE, CT CROSS STREET, BENGALURU 560 062. P AN: AAMCA 4555F APPELLANT RESPONDENT APPELLANT BY : SHRI PRIYADARSHI MISHRA , A DDL. C IT(DR)(ITAT ), BENGALURU. RESPO NDENT BY : SHR I PRAK YATH SHE TTY ON BEHALF O F ASSESSEE . DATE OF HEARING : 14.09 .2021 DATE OF PRONOUNCEMENT : 14 .0 9 .202 1 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(APPEALS)-I, BENGALURU DATED 24.10.2018 FOR THE ASSESSMENT YEAR 2015-16 ON THE FOLLOWING GROUNDS:- 1. THE ORDER OF THE LEARNED CIT (APPEALS), IN SO F AR AS IT IS PREJUDICIAL TO THE INTEREST OF REVENUE, IS OPPOSED TO LAW AND THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT (A) ERRED IN DELETING THE ADDITION OF RS. 3,00,00,000/- MADE BY THE ASSESSING OFFICER U/S 68 OF THE IT ACT IN RESPECT OF CREDITS RECEIVED FROM DIRECTOR S BY ITA NO.115/BANG/2019 PAGE 2 OF 4 ADMITTING ADDITIONAL EVIDENCE IN VIOLATION OF RULE 46 A OF IT ACT 1961. 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URG ED AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF THE LD. CIT (A) BE REVERSED AND THAT OF THE ASSESSING O FFICER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER, TO AMEND OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF APPEAL. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS S AID TO HAVE RECEIVED RS.2 CRORES FROM MAHAVIR CHAND AND RS.1 CRORE FROM MAHENDRA KOTHARI. THE ASSESSEE DID NOT FILE ANY DETAILS IN RESPECT OF THE ABOVE TWO CREDITS INCLUDING THE CONFIRMATION LETTERS AND DOCUMENTS TO PROVE THEIR CREDITWORTHINESS. HENCE THE AO INTER ALIA MADE THE ADDITION OF RS.3 CRORES ON THIS COUNT. 3. THE CIT(APPEALS) AFTER CALLING REMAND REPORT FRO M THE AO OBSERVED THAT REGARDING THE LOAN FROM THE DIRECTORS OF RS. 3 ,00,00,000, THE ASSESSEE HAS SUBMITTED THE DETAILED ACCOUNT COPIES, COPIES O F IT RETURNS, THE COPIES OF THE FIRM ACCOUNT, DANK ACCOUNT EXTRACT ETC., EXP LAINING THE SOURCES IN THE HANDS OF THE DIRECTORS WHO HAVE WITHDRAWN THE S AID AMOUNT FROM ANOTHER SISTER CONCERN (PARTNERSHIP FIRM) NAMELY, M ISS. AMBIKA SALES CORPORATION IN WHICH THEY ARE PARTNERS. M/S. AMBIKA SPIES CORPORATION IS DEALING IN BULLION HAVINQ RECORDED A TURNOVER OF RS . 4,324 CRORES FOR THE RELEVANT ASST YEAR AND HAVING SUFFICIENT FUNDS TO L END MONEY TO THE PARTNERS. IN THE CASE OF SRI MAHAVEERCHAND, AN AMOU NT OF RS. 2,00,00,000 WAS RECEIVED FROM THE FIRM ON 26.03.2015 FROM ICICI BANK AND IT WAS REPAID TO THE FIRM ON 31.03.2015 INTO THE ICICI BAN K ON THE SAME DATE FROM THE INDIVIDUALS ACCOUNT. THE SAID AMOUNTS WERE TRAN SFERRED FROM SRI MAHAVEERCHAND'S ACCOUNT TO THE ASSESSEE AND VICE VE RSA. THUS, THE ITA NO.115/BANG/2019 PAGE 3 OF 4 SOURCES FOR THE SAID CASH CREDIT STANDS EXPLAINED B EYOND DOUBT. LIKEWISE, IN RESPECT OF SRI MAHENDRA KUMAR, AN AMOUNT OF RS. 1,00,00,000 WAS RECEIVED ON 28.8.2014 AND RETURNED BACK ON 31.03.20 15 THROUGH ICICI BANK FROM THE FUNDS ADVANCED BY THE SAME PARTNERSHI P FIRM. SRI MAHENDRA KUMAR HAD ALSO DRAWN THE SAID AMOUNT OF RS. 1,00,00 ,000 FROM AMBIKA SALES CORPORATION, A PARTNERSHIP FIRM. MAHENDRA KUM AR HAVINQ RECEIVED THE AMOUNT ON 28.08.2014 IMMEDIATELY TRANSFERRED TH E SAME TO THE APPELLANT'S BANK ACCOUNT AND THE SAME WAS RETURNED BACK ON 31.03.2015 BY THE ASSESSEE AND CONSEQUENTLY MAHENDRA KUMAR TRA NSFERRED IT TO THE FIRM'S BANK ACCOUNT. THUS, EXPLAINING THE TRANSACTI ONS IN RESPECT OF RS. 1,00,00,000 AND RS. 2,00,00,000 CREDITED TO THE BOO KS OF THE ASSESSEE IN THE NAMES OF SRI MAHENDRA KUMAR AND SRI MAHAVEERCHA ND. IN VIEW OF THE ABOVE, THE AMOUNT OF RS. 3,00,00,000 RECEIVED FROM THE DIRECTORS STANDS EXPLAINED. THEREFORE THE ADDITION MADE BY THE AO U /S. 68 WAS DELETED BY THE CIT(APPEALS). 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. AS SEEN FROM THE ABOVE FACTS OF THE CASE, THE CIT(A PPEALS) AT THE TIME OF HEARING BEFORE HIM ADMITTED THE EVIDENCE IN THE FOR M OF ACCOUNT COPIES, COPIES OF IT RETURNS, FIRM ACCOUNTS, BANK ACCOUNT E XTRACT, ETC. AND OBSERVED THAT THE SOURCES FOR CASH CREDIT IN THE HANDS OF TH E DIRECTORS TO ADVANCE MONEY TO THE ASSESSEE STANDS EXPLAINED. HOWEVER, T HESE EVIDENCE WERE NOT CONFRONTED TO THE ASSESSING OFFICER FOR HIS COM MENTS. BEING SO, THERE IS VIOLATION OF RULE 46A OF THE INCOME-TAX RULES. ACCORDINGLY, IN THE INTEREST OF JUSTICE, WE REMIT THIS ENTIRE ISSUE IN DISPUTE TO THE FILE OF AO AND SET ASIDE THE ORDER OF THE CIT(APPEALS) ON THIS ISS UE. THE AO IS DIRECTED TO EXAMINE THE MATERIAL EVIDENCE FURNISHED BEFORE THE CIT(APPEALS) AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AF TER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.115/BANG/2019 PAGE 4 OF 4 5. IN THE RESULT, THE APPEAL BY THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 14 TH DAY OF SEPTEMBER, 2021. SD/- SD/- ( N V VASUDEV AN ) ( CHANDRA POOJARI ) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE, DATED, THE 14 TH SEPTEMBER, 2021. / DESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.