Exemplarr Worldwide Shipping Solutions Pvt Ltd, Karaikkal V. ACIT, Cir-1, Kumbakonam

ITA 115/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6976 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 14-01-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR KUMUDHA
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained cash credit; Opportunity of being heard; Corroborative evidences; TDS
• Section: 68; 144

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.115/CHNY/2019 / ASSESSMENT YEAR: 2012-13 M/S. EXEMPLARR WORLDWIDE SHIPPING SOLUTIONS PRIVATE LIMITED, KEEZHA VANJORE VILLAGE, T.R. PATTINAM, KARAIKKAL 609 606. [PAN: AACCE2356A] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, KUMBAKONAM. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE / RESPONDENT BY : DR. KUMUDHA, JCIT / DATE OF HEARING : 16.04.2019 /DATE OF PRONOUNCEMENT : 26.04.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 1, TRICHY, DATED 14.11.2018 RELEVANT TO THE ASSESSMENT YEAR 2012-13. IN THE GROUNDS OF APPEAL, THE ASSESSEE HAS CHALLENGED CONFIRMATION OF VARIOUS ADDITIONS MADE BY THE ASSESSING OFFICER. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 27.10.2012 ADMITTING A TOTAL INCOME OF I.T.A. NO. 115/CHNY/19 2 .34,37,920/-. THE CASE WAS SELECTED FOR SCRUTINY. THE ASSESSING OFFICER ISSUED VARIOUS NOTICES CALLING DETAILS. HOWEVER, THE ASSESSEE HAS NOT FILED THE DETAILS OF COPY OF BANK ACCOUNT, PROOF FOR EXPENSES CLAIMED IN THE PROFIT AND LOSS ACCOUNT, BREAK UP FOR SHORT TERM BORROWINGS AND SHORT TERM ADVANCES MADE, EXCHANGE RATE DIFFERENCES CLAIMED, BREAK UP DETAILS FOR FINANCE COST AND DETAILS FOR VESSEL HANDING EXPENSES, ETC. THUS, WITH THE AVAILABLE INFORMATION FILED ALONG WITH THE RETURN OF INCOME, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 144 OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] BY MAKING VARIOUS ADDITIONS. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). THE ASSESSEE HAS NOT FILED ANY DETAILS AGAINST ITS CLAIM FOR CONSIDERATION OF THE LD. CIT(A). HOWEVER, AFTER OBTAINING REMAND REPORT FROM THE ASSESSING OFFICER, WHILE GIVING PART RELIEF WITH REGARD TO THE ADDITION TOWARDS SHORT TERM BORROWINGS BROUGHT TO TAX, THE LD. CIT(A) CONFIRMED THE ADDITIONS TOWARDS FINANCE COST AND OTHER EXPENSES DISALLOWED BY THE ASSESSING OFFICER. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW ALONG WITH PAPER BOOK. AGAINST THE ADDITION OF .5,15,40,634/- DUE TO NON-PRODUCTION OF EVIDENCE FOR SHORT TERM BORROWINGS WHICH WERE CREDITED AS ON 31.03.2012, I.T.A. NO. 115/CHNY/19 3 THE LD. CIT(A) OBSERVED FROM THE BALANCE SHEET THAT THE OPENING CREDIT OF .9,36,139/- WAS NOT TAKEN INTO ACCOUNT BY THE ASSESSING OFFICER. HOWEVER, THE ASSESSEE HAS NOT FURNISHED ANY DETAILS TOWARDS THE BALANCE DIFFERENCE OF .5,06,04,495/-. ACCORDINGLY, BY GIVING PART RELIEF OF .9,36,139/-, THE LD. CIT(A) CONFIRMED THE UNEXPLAINED CREDIT OF .5,06,04,495/-. 6. BY REFERRING TO THE LEDGER ACCOUNTS OF M/S. BALAN INFRASTRUCTURE P. LTD., THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE SAID COMPANY PAID ADVANCE TO THE EXTENT OF .2,47,00,000.00 DURING THE PERIOD 01.04.2011 TO 31.03.2012, WHICH WAS CONFIRMED BY THE SAID COMPANY VIDE ITS CONFIRMATION LETTER DATED 29.11.2013. SIMILARLY, BY REFERRING TO THE LOAN AGREEMENT AS WELL AS LEDGER ACCOUNT OF M/S. GREAT MEERA FINLEASE P. LTD., THE LD. COUNSEL HAS SUBMITTED THAT THE LEDGER ACCOUNT SHOWS LOAN CREDIT OF .2,68,40,634.00 AND MOREOVER, THE ASSESSEE HAS CONFIRMED THE CREDIT BALANCE AS ON 31.03.2012 TO THE CREDITOR M/S. GREAT MEERA FINLEASE PVT. LTD. BY FILING COPY OF THE BANK STATEMENT OF THE ASSESSEE FOR THE PERIOD FROM 01.04.2011 TO 31.03.2012, THE LD. COUNSEL FOR THE ASSESSEE PRAYED FOR DELETING THE ADDITION MADE TOWARDS SHORT TERM BORROWINGS. SINCE THE ASSESSEE HAS NOT FURNISHED THE BANK STATEMENTS AND SUPPORTING EVIDENCE, THE ASSESSING OFFICER TREATED THE SAME AS UNEXPLAINED CREDIT AND BROUGHT TO TAX UNDER SECTION 68 OF THE ACT. THUS, WE REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE DETAILS AS FURNISHED BEFORE THE TRIBUNAL AND DECIDE THE ISSUE IN ACCORDANCE I.T.A. NO. 115/CHNY/19 4 WITH LAW BY AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. WITH REGARD TO THE DISALLOWANCE OF FINANCE COST OF .27,82,772/-, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AS PER LOAN AGREEMENT, THE ASSESSEE IS LIABLE TO PAY INTEREST @ 14.25% FOR THE LOAN OBTAINED FROM M/S. GREAT MEERA FINLEASE PVT. LTD. AND PAID INTEREST TO THE TUNE OF .27,82,772/- AND MOREOVER, THE ASSESSEE HAS DEDUCTED TDS OF .2,78,277/-. WE FIND FORCE IN THE ARGUMENT OF THE LD. COUNSEL. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO VERIFY BANK ACCOUNT OF THE ASSESSEE AS WELL AS ACCOUNTS OF M/S. GREAT MEERA FINLEASE PVT. LTD., LOAN AGREEMENT, ETC. AND DECIDE THE ISSUE ON MERITS. 8. WITH REGARD TO THE DISALLOWANCE OF OTHER EXPENSES OF .50,49,786/-, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE CLAIM INCLUDES VESSEL HANDLING EXPENSES OF .32,15,573/- AND THE BALANCE PERTAINING TO VARIOUS EXPENSES SUCH AS TRAVELLING CONVEYANCES, LABOUR CHARGES, SECRETARIAL EXPENSES, POSTAGE AND COURIER, ETC. HOWEVER, THE ASSESSEE HAS NOT FILED ANY DETAILED SUPPORTING EVIDENCE FOR THE ABOVE CLAIM. MOREOVER, BY CONSIDERING THE QUANTUM OF BUSINESS OF THE ASSESSEE, THE ASSESSING OFFICER HAS ALLOWED RELIEF OF 50% OF THE TOTAL CLAIM AND DISALLOWED THE BALANCE AMOUNT IN THE ABSENCE OF SUPPORTING EVIDENCES. THE ASSESSEE HAS NOT FILED ANY DETAILED STATEMENT OF EXPENDITURE WITH SUPPORTING EVIDENCE BEFORE THE I.T.A. NO. 115/CHNY/19 5 TRIBUNAL. WE FIND NO MERITS IN THE ARGUMENTS OF THE LD. COUNSEL. UNDER THE ABOVE FACTS AND CIRCUMSTANCES, 50% OF THE ADDITION CONFIRMED BY THE LD. CIT(A) STANDS SUSTAINED. THUS, THE GROUND RAISED BY THE ASSESSEE STANDS DISMISSED. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 26 TH APRIL, 2019 IN CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 26.04.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.