Aston Power and Steel Pvt Ltd., CHENNAI V. ITO Corporate Ward 1(1), CHENNAI

ITA 1230/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5743 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 25-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.1230/CHNY/2019 ( / ASSESSMENT YEAR: 2015-16) M/S. ASTON POWER AND STEEL PVT. LTD., 278, MOOKERNALLAMUTHU STREET, PARRYS, CHENNAI 600 001. VS THE INCOME TAX OFFICER, CORPORATE WARD 1(1), CHENNAI. PAN: AAICA4259Q ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI N. VIJAY KUMAR, CA / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT /DATE OF HEARING : 08.07.2019 /DATE OF PRONOUNCEMENT : 03.10.2019 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, CHENNAI IN ITA NO. 160/17-18/CIT(A)-4/AY:2015-16 DATED 26.03.2019 FOR THE ASSESSMENT YEAR 2015-16. 2. M/S. ASTON POWER AND STEEL PVT. LTD., IS IN THE BUSINESS OF POWER PROJECTS, MANUFACTURING, TRADING, IMPORTS AND EXPORTS. :-2-: ITA NO. 1230/CHNY/2019 WHILE MAKING ASSESSMENT FOR THE ASSESSMENT YEAR 2015-16, THE AO FOUND THAT THE ASSESSEE WAS IN RECEIPT OF SHORT TERM BORROWING OF RS.2,46,39,791/- FROM M/S. MANMOHAK EXPORTS PVT. LTD. THE AO ISSUED A NOTICE U/S.133(6) CALLING FOR INFORMATION AT THE ADDRESS PROVIDED BY THE ASSESSEE. SINCE THERE WAS NO RESPONSE, HE ADDED THE CREDIT CLAIMED BY THE ASSESSEE AS AN UNEXPLAINED CREDIT AND COMPLETED THE ASSESSMENT. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE LD.CIT(A) FURNISHED VARIOUS OPPORTUNITIES, SINCE THERE WAS NO RESPONSE FROM THE ASSESSEE, THE LD.CIT(A) DISMISSED THE APPEAL. AGGRIEVED THE ASSESSEE FILED THIS APPEAL. 3. THE LD.AR PLEADED THAT THE IMPUGNED TRANSACTION IS A GENUINE TRANSACTION AND THE ASSESSEE HAS SUBSTANTIAL EVIDENCE AND IF ONE MORE OPPORTUNITY IS GIVEN TO THE ASSESSEE, IT WOULD BE ABLE TO PROVE IT TO THE SATISFACTION OF THE AUTHORITY CONCERNED AND HENCE PLEADED THAT IN THE INTERESTS OF JUSTICE, ITS PLEA MAY BE CONSIDERED FAVOURABLY. 4. WE HEARD THE RIVAL SUBMISSIONS AND IN THE INTERESTS OF JUSTICE, WE REMIT THIS ISSUE BACK TO THE LD.CIT(A). THE ASSESSEE :-3-: ITA NO. 1230/CHNY/2019 SHALL PLACE ALL THE MATERIAL IN SUPPORT OF ITS CONTENTION BEFORE THE LD.CIT(A) WITHIN 30 DAYS FROM THE RECEIPT OF THIS ORDER AND COMPLY WITH HIS REQUIREMENTS IN ACCORDANCE WITH LAW. THE LD.CIT(A) ON DUE CONSIDERATION OF THEM IN ACCORDANCE WITH LAW AND AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE SHALL PASS THE ORDER ON MERITS. 5 IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 3 RD OCTOBER, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 3 RD OCTOBER, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. [ /GF ( ) (DUVVURU R.L REDDY) /JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER