The ITO, Ward-1, Rajahmundry V. M/s Yuvaraj Power Projects (Private) Ltd., Rajahmundry

ITA 143/VIZ/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56804 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-07-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 25-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TH LUCAS PETER

Judgement Text

ITA NO 143 OF 2011 YUVARAJ POWER PROJECTS PVT LTD R AJAHMUNDRY PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NOS.143/VIZAG/2011 ASSESSMENT YEAR:2007-08 ITO WARD-1, RAJAHMUNDRY VS. YUVARAJ POWER PROJECTS (P) LTD., RAJAHMUNDRY (APPELLANT) (RESPONDENT) PAN NO:AAACY 2430 P APPELLANT BY: SHRI TH. LUCAS PETER, CIT (DR) RESPONDENT BY: SHRI G.V.N. HARI, CA DATE OF HEARING: 04-08-2011 DATE OF PRONOUNCEMENT: 23-08-2011 ORDER PER SHRI B.R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER DATED 24.01.2011 PASSED BY THE LD CIT (A) RAJAHMUNDRY AND IT RELATES TO THE ASSESSMENT YEAR 2007-08. 2. THE REVENUE IS CHALLENGING THE DECISION OF THE L D CIT (A) ON THE FOLLOWING ISSUES: A) PARTIAL RELIEF GRANTED ON THE ADDITION PERTAININ G TO CASH DEPOSITS OF ` 23.00 LAKHS. B) ADDITION OF ` 20,80,995/- RELATING TO AMOUNTS STANDING IN THE NAM E OF SHRI T.V. SATYANARAYANA. C) ADDITION OF ` 25.00 LAKHS RELATING TO SHARE APPLICATION MONEY RECEIVED FROM SHRI K.S.V. PRASAD. ITA NO 143 OF 2011 YUVARAJ POWER PROJECTS PVT LTD R AJAHMUNDRY PAGE 2 OF 3 3. THE FACTS RELATING TO THE ISSUES ARE STATED IN B RIEF. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION D ECLARING A NET LOSS OF ` 3,45,550/-. HOWEVER, THE ASSESSING OFFICER COMPLETE D THE ASSESSMENT BY DETERMINING THE TOTAL INCOME AT ` 65,57,640/-, WHICH INTER ALIA, INCLUDED THE THREE TYPES OF DISALLOWANCES REFERRED IN THE PRECEDING PA RAGRAPH. THE ASSESSEE CHALLENGED THE IMPUGNED DISALLOWANCES BEFORE THE LD CIT (A). IN THE APPELLATE PROCEEDING, THE ASSESSEE SUBMITTED CERTAIN ADDITION AL EVIDENCES RELATING TO THE ABOVE SAID THREE ADDITIONS. ACCORDINGLY THE LD CIT (A) CALLED FOR A REPORT FROM THE ASSESSING OFFICER. IN THE REMAND REPORT, THE ASSES SING OFFICER ACCEPTED THAT THERE ARE EVIDENCES TO PROVE THE SOURCES TO THE EXT ENT OF ` 10 LAKHS OUT OF THE ADDITION OF ` 23.00 LAKHS. ACCORDINGLY THE ASSESSING OFFICER OBSE RVED THAT THE BALANCE AMOUNT OF ` 13.00 LAKHS SHOULD BE SUSTAINED. ACCORDINGLY, THE LEARNED CIT(A) SUSTAINED THE ADDITION TO THE EXTENT OF RS.1 3.00 LAKHS. WITH REGARD TO THE ADDITION OF ` 20,80,995/-, THE ASSESSING OFFICER ACCEPTED THE ASS ESSEE HAS PROPERLY EXPLAINED THE SOURCES THERE FOR. ACCORDIN GLY, THE LEARNED CIT(A) DELETED THE SAID ADDITION. WITH REGARD TO THE ADDI TION OF ` 25.00 LAKHS, THOUGH THE ASSESSING OFFICER ACCEPTED THAT THE SAID AMOUNT IS REFLECTED IN THE RETURN OF INCOME OF SHRI K.S.V. PRASAD AS SHARE APPLICATION M ONEY, THE SAME IS NOT REFLECTED AS SHARE CAPITAL IN THE BOOKS OF THE AS SESSEE COMPANY. IN THIS CONNECTION, THE ASSESSEE EXPLAINED THAT THE IMPUGNE D AMOUNT WAS ERRONEOUSLY SHOWN AS UNSECURED LOAN IN THE BOOKS OF THE COMPA NY INITIALLY. HOWEVER, ON NOTICING THE MISTAKE, IT WAS TRANSFERRED TO SHARE APPLICATION MONEY ACCOUNT BY PASSING NECESSARY JOURNAL ENTRY. IT WAS FURTHER SU BMITTED THAT THE IMPUGNED AMOUNT CANNOT BE SHOWN AS SHARE CAPITAL UNTIL THE ALLOTMENT OF SHARES. THE LD CIT (A) WAS CONVINCED WITH THE SAID EXPLANATION OF THE ASSESSEE AND ACCORDINGLY DELETED THIS ADDITION ALSO. 4. ON A CAREFUL PERUSAL OF THE RECORD AND AFTER HEA RING THE CONTENTIONS OF THE COUNSEL, WE NOTICE THAT THE LD CIT (A) HAS GIVEN RE LIEF ONLY ON THE BASIS OF REMAND REPORT FURNISHED BY THE ASSESSING OFFICER. IN RESPECT OF ADDITION OF ITA NO 143 OF 2011 YUVARAJ POWER PROJECTS PVT LTD R AJAHMUNDRY PAGE 3 OF 3 ` 25.00 LAKHS, THE ASSESSEE HAD DULY EXPLAINED THE DE FECT THAT WAS POINTED OUT BY THE ASSESSING OFFICER AND ACCORDINGLY THE LD CIT (A ) HAS GIVEN RELIEF. IN THESE CIRCUMSTANCES, WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF THE LD CIT (A) ON ALL THE THREE ISSUES. ACCORDINGLY WE DISMISS THE APPEAL FILED BY THE REVENUE. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMIS SED. PRONOUNCED IN THE OPEN COURT ON 23 RD AUGUST, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE:23-08-2011 COPY TO 1 THE ITO WARD - 1, RAJAHMUNDRY 2 M/S YUVARAJ POWER PROJECTS (P) LTD., D.NO.77-8-4 RTC COMPLEX ROAD, RAJAHMUNDRY 3 4. THE CIT RAJAHMUNDRY THE CIT(A), RAJAHMUNDRY 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM