Talent Steel Melts Pvt Ltd., Coimbatore V. DCIT, Coimbatore

ITA 1167/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96259 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 14-10-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 18-05-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: S SRIDHAR
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI , . ! '# , $ %& ' [ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ] ./ I.T.A.NOS.1167 & 1168/MDS/2015 / ASSESSMENT YEAR : 2011-12 M/S TALENT STEEL MELTS PVT. LTD 36, RAJAJI STREET RAMNAGAR COIMBATORE VS. THE ASSTT. COMMISSIONER O F INCOME - TAX COMPANY CIRCLE I(2) [PRESENTLY DY. CIT, CORPORATE CIRCLE-2] COIMBATORE [PAN AADCT 0018 M ] ( () / APPELLANT) ( *+() /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE /RESPONDENT BY : SHRI A.V. SREEKANTH, JCIT / DATE OF HEARING : 14 - 10 - 2015 / DATE OF PRONOUNCEMENT : 16 - 10 - 2015 , / O R D E R PER BENCH THESE ARE THE APPEALS BY THE ASSESSEE FOR ASSES SMENT YEAR 2011-12. I.T.A.NO.1167/MDS/2015 IS DIRECTED AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, COIMBATORE, DATED 23.4.2015 REGARDING MERITS OF THE ADDITION MADE U/S 68 OF TH E ACT TOWARDS SHARE APPLICATION MONEY. THE OTHER APPEAL IS WITH REGARD TO LEVY OF PENALTY U/S 271(1)(C) OF THE ACT. ITA NO.1167 & 1168/15 :- 2 -: 2. FACTS OF THE ISSUE ARE THAT THE ASSESSEE SHOWN REC EIPT OF A SUM OF ` 34,80,000/- AS SHARE APPLICATION MONEY. THE ASSE SSEE HAS NOT PRODUCED ANY BOOKS OF ACCOUNT AND NOT PROVED TH E GENUINENESS OF THE TRANSACTION. THE ASSESSING OFFICER DOUBTED THE SE TRANSACTIONS AND TREATED THE SAME AS UNEXPLAINED CREDIT U/S 68 OF T HE ACT. BEFORE THE CIT(A) ALSO, THE ASSESSEE HAS NOT PLACED ANY EVIDE NCE REGARDING IDENTITY AND CREDITWORTHINESS OF THE SUBSCRIBERS AN D GENUINENESS OF THE TRANSACTIONS. ACCORDING TO THE CIT(A) ALSO, TH E ASSESSEE FAILED TO PROVE THE SHARE APPLICATION MONEY AS IT IS RECEIVED FROM THE PERSONS ASSESSED TO TAX AND HE CONFIRMED THE ADDITION. ON THE SAME REASONING, PENALTY U/S 271(1)(C) OF THE ACT WAS A LSO CONFIRMED BY THE CIT(A). AGAINST THESE ORDERS, THE ASSESSEE HAS FI LED THE PRESENT APPEALS. 3. WE HEARD BOTH PARTIES AND PERUSED THE MATERIAL ON R ECORD. THE ASSESSEE HAS NOT PLACED NECESSARY MATERIAL BEF ORE THE LOWER AUTHORITIES TO PROVE THE IDENTITY AND CREDITWORTHIN ESS OF THE SUBSCRIBERS AND GENUINENESS OF THE TRANSACTION. THE ASSESSEE FAILED TO PROVE THE TRANSACTIONS SATISFACTORILY BEFORE THE LOWER AUTHORITIES. BEING SO, IN OUR OPINION, THE MATTER REQUIRES FURTH ER ENQUIRY AT THE END OF THE ASSESSING OFFICER. CONSIDERING THE JUDGMENT OF THE DELHI HIGH COURT IN CIT VS SOPHIA FINANCE LTD, 205 ITR 98, DEC ISION OF THE DELHI ITAT IN THE CASE OF EKTA AGRO INDUSTRIES LTD VS ITO , 8 DTR 239, ITA NO.1167 & 1168/15 :- 3 -: JUDGMENT OF THE DELHI HIGH COURT IN CIT VS LOVELY EXPORTS, 299 ITR 268 AND DECISION OF HYDERABAD BENCH OF ITAT IN ACIT VS M/S MANCHERIAL CEMENT IN I.T.A.NO. 115/HYD/2012, DATED 18.1.2013, WE ARE INCLINED TO REMIT THE ENTIRE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL PRODUCE ALL NECESSARY DOCUMENTS TO PROVE ITS CASE. THEREAFTER, THE ASSESSING OFFICER SHALL DECIDE THE ISSUE RELATING T O LEVY OF PENALTY U/S 271(1)(C) OF THE ACT, IF SITUATION WARRANTS. 4. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY, THE 1 6 TH OF OCTOBER, 2015, AT CHENNAI. SD/- SD/- ( . ! '# ) ( V. DURGA RAO ) $ / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER !' / CHENNAI #$ / DATED: 16 TH OCTOBER, 2015 RD $%&& '(&)( / COPY TO: & 1 . / APPELLANT 4. & * / CIT 2. / RESPONDENT 5. (+,& - / DR 3. & *&./ / CIT(A) 6. ,0&1 / GF