M/S SUGANMULL BHERUDHAN DUGAR TRADERS (p0 lTD, CHENNAI V. ACIT COMPANY CIRCLE VI (4), CHENNAI

ITA 1303/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5051 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 18-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: D ANAND
• Keywords: Opportunity of being heard; Additional evidence
• Section: 143(3); 143(1)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , . , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A. NO. 1303/CHNY/2018 / ASSESSMENT YEAR: 2006-07 M/S. SUGANMULL BHERUDHAN DUGAR TRADERS (P) LTD., SUGAN KUNJ, 29, MAHAVEER COLONY, EVK SAMPATH ROAD, VEPERY, CHENNAI 600 007. [PAN:AAICS7894R] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE VI (4), CHENNAI. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI D. ANAND, ADVOCATE / RESPONDENT BY : SHRI B. SAGADEVAN, JCIT / DATE OF HEARING : 08.05.2019 /DATE OF PRONOUNCEMENT : 21.05.2019 / 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) 15, CHENNAI, DATED 30.01.2018 RELEVANT TO THE ASSESSMENT YEAR 2006-07. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE TOWARDS UNEXPLAINED SHARE PREMIUM RECEIVED BY THE ASSESSEE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2006-07 ON 18.11.2006 DECLARING INCOME OF .12,71,740/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION I.T.A. NO. 1303/CHNY/18 2 143(1) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT]. SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY. AFTER CONSIDERING THE DETAILS FILED AGAINST STATUTORY NOTICES, THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED BY ASSESSING INCOME OF THE ASSESSEE AT .62,21,140/- BY DISALLOWING THE SHARE PREMIUM AMOUNT RECEIVED FROM THE POTENTIAL SHAREHOLDERS OF .49,50,000/- SINCE THE ASSESSEE HAS NOT PROPERLY EXPLAINED AND ALSO DUE TO NON-FILING OF CONFIRMATION FROM THE ALLOTTEES. ON APPEAL, THE LD. CIT(A) CONFIRMED THE ADDITION. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. BY FILING A PETITION UNDER RULE 18(4) OF THE ITAT RULES FOR ADMISSION OF ADDITIONAL EVIDENCE, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE SELF-EXPLANATORY CONFIRMATION LETTERS FROM THE POTENTIAL SHAREHOLDERS ARE AVAILABLE AND FILED THE SAME BEFORE THE TRIBUNAL AND PRAYED FOR DELETING THE ADDITION. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDERS OF AUTHORITIES BELOW. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. FROM THE DETAILS FILED BY THE ASSESSEE, THE ASSESSING OFFICER THAT THERE HAS BEEN AN INCREASE IN SHARE CAPITAL TO THE TUNE OF .8,25,000/-. THE ASSESSEE FILED LIST OF ALLOTTEES, LEDGER FOLIOS RELATING TO SHARE APPLICATION MONEY RECEIVED, BUT I.T.A. NO. 1303/CHNY/18 3 COULD NOT FILE CONFIRMATION LETTERS WITH BANK ACCOUNT NUMBER, MODE OF PAYMENT. ACCORDINGLY, THE ASSESSING OFFICER DETERMINED THE UNEXPLAINED SHARE APPLICATION MONEY OF .49,50,000/- AND BROUGHT TO TAX. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE COULD NOT FILE COMPLETE DETAILS SUCH AS, CONFIRMATION LETTERS FROM THE INVESTORS, BANK ACCOUNT NUMBER, IT RETURNS, ETC., THE LD. CIT(A) UPHELD THE ADDITION. BEFORE THE BENCH, THE LD. COUNSEL FOR THE ASSESSEE FILED A PETITION FOR ADMISSION OF ADDITIONAL EVIDENCE ENCLOSING CONFIRMATION FROM VARIOUS INVESTORS, CONTAINING PAYMENT DETAILS WITH ADDRESS. ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE DETAILS AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER ALLOWING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 21 ST MAY, 2019 IN CHENNAI. SD/ - SD/ - (INTURI RAMA RAO) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 21.05.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.