NEEL VENTURES PRIVATE LIMITED, MUMBAI V. ITO, 15(2)(3), MUMBAI

ITA 1168/MUM/2023

AI Insights

Neel Ventures Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which affirmed the additions made by the Assessing Officer regarding unexplained cash credits and investments for the assessment year 2009-10. The Tribunal decided the appeal ex-parte due to the non-availability of the assessee at the provided address. The primary legal issues revolved around the reopening of the case under sections 147 and 148, and the validity of the additions made under section 68 of the Income Tax Act, 1961. The Tribunal concluded that the assessee did not meet the burden of proof required to challenge the additions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125130 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 05-07-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 09-04-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SURESH GAIKWAS
• Assessee Lawyers: FILING ITS RETURN OF INCOME DATED
• Keywords: Unexplained cash credit; Unexplained investment
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM & SHRI N. K. CHOUDHRY, JM आयकरअपीलसं./ I.T.A. No. 1168/Mum/2023 (निर्धारणवर्ा / Assessment Year: 2009-2010) Neel Ventures Pvt. Ltd Mumbai. B-47/187, Kalina Sunder Nagar CHS, Santacruz(E) Mumbai- 400098 Vs ITO, 15(2)(3), Mumbai. 432, Aayakar Bhavan, M.K.Road, Mumbai- 400020 PAN No. AACCN7025R (अपीलधर्थी/Appellant) : (प्रत्यर्थी / Respondent) अपीलधर्थीकीओरसे/ Appellant by : None प्रत्यर्थीकीओरसे/Respondent by : Shri. Suresh Gaikwas, Sr.AR. Date of Hearing : 06.07.2023 Date of Pronouncement : 27.07.2023 आदेश / O R D E R Per N K Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 10-02-2023, impugned herein passed by the Ld. Commissioner of Income Tax(Appeals)/National Faceless Appeal Centre(NFAC) Delhi, u/s.250 of the Income Tax Act 1961 (in short „the Act‟) for AY 2009-10. 2 I. T . A . N o. 1168/ Mu m /2 0 2 3 NEEL VENTURES P.LTD 2. In this case, notice for date of hearing on 6 th July 2023 was sent to the Assessee at the address mentioned in Form no.36, however, the same was returned back by the postal department with the remarks “left” meaning thereby the addressee is not available at the address mentioned. Hence, considering the peculiar facts and circumstances we are inclined to decide this appeal as ex-parte. 3. The Assessee declared its income at loss of Rs. 72,855/- by filing its return of income on dated 21 st Sep, 2011. Subsequently, on the information received from the office of ITO 6(i)(1) Mumbai vide letter dated 7 th March, 2016 to the effect that during the financial year 2008-09 relevant to 2009-10, the Assessee has made an investment of Rs.50 lacs for procuring equity shares of M/s. Abikaran Trading Pvt. Ltd. at premium of Rs. 90 per share. Consequently, notice u/s. 148 of the Act dated 29 th March, 2016 was issued to the Assessee, in response to which, the Assessee by filing its return of income dated 5 th Nov, 2016 declared loss of Rs. 72,855/-. Lateron the Assessing Officer also received further information from DDIT investigation unit 4(2) Calcutta that the Assessee company M/s. Neel Ventures Pvt. Ltd. also received cash of Rs. 3.07 Crores through funds transfer structured layering from various proprietary concerns mentioned in the information received from DDIT (inv)(1) Calcutta . Thereafter, the case of the Assessee was examined by the Assessing Officer who ultimately made the additions of Rs. 5,97,65,000/- as 3 I. T . A . N o. 1168/ Mu m /2 0 2 3 NEEL VENTURES P.LTD unexplained cash credits in the books of account of the Assessee u/s. 68 of the Act, Rs. 50,00,000/- as unexplained investment in the books of account and Rs.3,07,00,000/- as unexplained cash credits u/s. 68 of the Act. 4. The Assessee being aggrieved not only challenged the aforesaid additions, but also challenged the re-opening of the case of the Assessee u/s. 147 of the Act, before the Ld. Commissioner, who also not only affirmed the opening of the case u/s. 147/148 of the Act, but also affirmed the said additions, against which the Assessee has preferred the instant appeal. 5. We have given for thoughtful consideration to the peculiar circumstances of the case and observe that it is mandate of the law that initial onus is upon the Assessee to establish the identity of the company who issued the shares and its creditworthiness and genuineness of the transaction. Once the Assessee discharges the primary onus by establishing the aforesaid 3 conditions then the onus shifts upon the department to make further exercise and establish contrary to the claim made by the Assessee. As it appears from the orders passed by the authorities below, the Assessee had failed to discharge its primary onus therefore, both the parties below correctly made and affirmed the additions in accordance with law. Even otherwise we do not find any substantive material/reason to controvert the findings of the Ld. Commissioner and therefore we are inclined not to interfere in the impugned order. Consequently the same is upheld. 4 I. T . A . N o. 1168/ Mu m /2 0 2 3 NEEL VENTURES P.LTD 6. In the result appeal filed by the Assessee stands dismissed as ex-parte. Orders pronounced in the open court on 27.07.2023. Sd/- Sd/- (Prashant Maharishi) (N. K. Choudhry) Accountant Member Judicial Member Ms.Urmila आदेशकीप्रतितितिअग्रेतिि/Copy of the Order forwarded to : 1. अपीलधर्थी/ The Appellant 2. प्रत्यर्थी/ The Respondent 3. आयकरआयुक्त/ CIT- concerned 4. नवभधगीयप्रनिनिनर्, आयकरअपीलीयअनर्करण, मुंबई/ DR, ITAT, Mumbai 5. गधर्ाफधईल / Guard File आदेशानुसार/ BY ORDER, .उि/सहायकिंजीकार (Dy./Asstt.Registrar) आयकरअिीिीयअतिकरण, मुंबई/ ITAT, Mumbai