M/s. Kashyap Shipping Pvt. Ltd., Morbi V. The ITO-Ward-1 , Gandhidham

ITA 131/RJT/2019

AI Insights

The case involves M/s. Kashyap Shipping Pvt. Ltd., a private limited company engaged in various shipping and transportation services, appealing against the order of the Learned Commissioner of Income Tax (Appeals)-2, Rajkot. The appeal was against the assessment order passed under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2013-14, which included a lumpsum disallowance of Rs. 1,00,000 from expenses and an addition of Rs. 3,82,795 as unexplained cash credit under section 68 of the Act. The CIT(A) had confirmed these additions, citing the assessee's failure to provide adequate representation or evidence. The Tribunal, considering the circumstances and the assessee's readiness to cooperate fully in the renewed proceedings, decided to set aside the matter to the CIT(A) for a fresh examination.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 134509 (ITAT-RAJKOT)
• Duration Of Justice: 14 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 06-12-2022
• Assessment Year: misc
• Appeal Filed On: 02-07-2008
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण, अहमदाबाद ᭠यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, (Conducted through E-Court, Rajkot) BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER आयकर अपील सं./ITA No. 131/Rjt/2019 िनधाᭅरण वषᭅ/Asstt. Years: 2013-2014 M/s.Kashyap Shipping Pvt. Ltd., Office No.214-215, 2 nd Floor, Rishabh Corner, Plot No.93, Sector-8, Gandhidham-370001. PAN: AAACK6275G Vs. I.T.O., Ward-1, Gandhidham. Assessee by : Shri Mehul Ranpura, A.R Revenue by : Shri O.P. Chaudhary, Sr. D.R सुनवाई कᳱ तारीख/Date of Hearing : 07/12/2022 घोषणा कᳱ तारीख /Date of Pronouncement: 09/12/2022 आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-2, Rajkot, dated 16/04/2019 arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2013-14. ITA No.131/Rjt/2019 A.Y. 2013-14 2 2. The assessee has raised the following grounds of appeal: 1. The grounds of appeal mentioned hereunder are without prejudice to one another. 2. The Ld.Commisioner of Income-tax (Appeals)-2, Rajkot (hereinafter referred to as the “CIT(A)”] erred on facts as also in law in dismissing the appeal ex-parte. 3. The Ld. CIT(A) erred on facts as also in law in confirming lumpsum of Rs.1,00,000/- made from expenses debited to P&L account on the alleged ground of failure to furnish proper and complete evidence. The disallowance confirmed is totally unjustified and unwarranted which deserves to be deleted and may kindly be deleted. 4. The Ld.CIT(A) erred on facts as also in law in confirming addition made of Rs.3,82,795/- U/s.68 of the Act being u secured loan received from the M/s.Dev Impex on the alleged ground that the appellant failed to prove genuineness, identity & creditworthiness on lender. The addition made is totally unjustified and unwarranted which deserves to be deleted and may kindly be deleted. 5. Your Honour’s appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal. 3. The assessee in the present case is a private limited company and engaged in the business of Stevedoring, Clearing, Forwarding, Agency Commission and Transportation Business. In the present case, the assessment was framed u/s 143(3) of the dated 08/02/2016, after making addition of the following items. Sr.No Particulars Amount(In Rs.) 1. Lumpsum disallowance of various expenses 1,00,000/- 2. Unexplained Cash Credit u/s.68 of the Act 3,82,795/- 4. Aggrieved assessee preferred an appeal before the Ld.CIT(A), who confirmed the order of the AO by observing that there was no representation from the side of the assessee despite several opportunities of being heard were provided to it (the assessee). 5. Being aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 6. The Ld. AR before us fairly conceded that there was no representation from the side of the assessee before the Ld. CIT(A). However, the Ld. AR submitted that there was some misunderstanding between the assessee and the tax consultant, and for this reason no representation could made by the assessee. ITA No.131/Rjt/2019 A.Y. 2013-14 3 6.1 The Ld. AR further assured that the assessee is ready to file its representation/raised its contention now. Thus, the Ld. AR requested to set-aside the issue to the file of the Ld. CIT(A), for fresh adjudication. 7. On the other hand the Ld. DR did not raise any objection if the matter is set aside to the file of the Ld. CIT(A) for fresh adjudication as per the provision of law. 8. Heard the rival contentions of both the parties and perused the materials available on record. Considering the statement given by the Ld. Counsel for the assessee with the assurance to extend full co-operation during the appellate proceeding and in the interest of justice and fair play, we are inclined to give one more opportunity to the assessee to represent its case before the Ld.CIT(A). It is directed to the assessee that it shall not seek any adjournment without just cause and shall extend full cooperation in getting the matter disposed off at the appellate stage. Hence, the issues raised by the assessee are set-aside to the file of the Ld. CIT(A) for adjudication as per the provision of law. Thus, the grounds of appeal of the assessee are partly allowed for statistical purposes. 9. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the Court on 09/12/2022 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 09/12/2022 Manish