NYKA EVENTS P.LTD, MUMBAI V. ADDL CIT 1(2), MUMBAI

ITA 147/MUM/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5543 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA S ANJARIA
• Section: 143(3)

Judgement Text

AAYAKR APILAIYA AIQAKRNA AAYAKR APILAIYA AIQAKRNA AAYAKR APILAIYA AIQAKRNA AAYAKR APILAIYA AIQAKRNA B NYAAYAPIZ MAMUBA[ NYAAYAPIZ MAMUBA[ NYAAYAPIZ MAMUBA[ NYAAYAPIZ MAMUBA[- -- - MAO. MAO. MAO. MAO. IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUM BAI , BEFORE SRI MAHAVIR SINGH, JM AND SRI MANOJ KUMAR AG GARWAL, AM AAYAKR APILA SAM AAYAKR APILA SAM AAYAKR APILA SAM AAYAKR APILA SAM . / ITA NO. 147/MUM/2017 ( INAQA-ARNA BAYA- / ASSESSMENT YEAR 2011-12) NYKA EVENTS PVT. LTD. GALA NO. 418, 4 TH FLOOR, HIREN LIGHT ESTATE, MOGUL LANE, MAHIM (WEST), MUMBAI-400 016 VS. ADDL. CIT -1(2) ROOM NO. 530, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400 020 ( APILAAQAI APILAAQAI APILAAQAI APILAAQAI - -- - / APPELLANT) .. ( P`%YAQAAI P`%YAQAAI P`%YAQAAI P`%YAQAAI- -- - / RESPONDENT) . / PAN NO. AABCN5898D ! ' / APPELLANT BY : MS. NEHA PARANJPE, AR $%! ' / RESPONDENT BY : SHRI CHAITANYA S. ANJARIA, DR ' '( / DATE OF HEARING: 15 .10.2018 ' '( / DATE OF PRONOUNCEMENT : 05 . 11 .2018 AADOSA AADOSA AADOSA AADOSA / O R D E R , / PER MAHAVIR SINGH, JM: THIS APPEAL FILED BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-2, MUMBAI [IN SHORT CIT(A)], IN APPEAL NO. CIT(A)-2/IT/79/2014-15 VIDE ORDER DATED 29.08.2016. THE ASSESSMENT WAS FRAMED BY THE ADDL. COMMISSIONER OF INCOME TAX, RANGE 1(2), MUMBAI (IN SHORT ADIT/ AO) FOR THE A .Y. 2011-12 VIDE ORDER DATED 24.03.2014 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2 ITA NOS. 147/MUM/2017 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF THE AO IN MAKING AD DITION BEING DIFFERENCE BETWEEN INCOME AS PER RETURN OF THE ASSESSEE PREPAR ED ON THE BASIS OF PROFIT AND LOSS ACCOUNT AND INFORMATION RECEIVED BY DEPARTMENT THROUGH AIR. THERE WAS DIFFERENCE OF 7,73,748/-. FOR THIS ASSESSEE HAS RAISED THE FOLLOWING TWO GROUNDS: - 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-41, MUMBAI THEREINAFTER REFERRED TO AS 'LD. CIT(A) ERRED IN PASSING THE ORDER DATED 29.08.2016 UPHOLDING THE ACTION OF THE A.O. IN MAKING AN ADDITION OF RS.7,73,748/- BEING THE DIFFERENCE BETWEEN INCOME AS PER ITS/AIR INFORMATION AND PROFIT & LOSS ACCOUNT OF THE APPELLANT WITHOUT CONSIDERING THE FACTS AND CIRCUMSTANCES AND SUBMISSIONS OF THE APPELLANT IN PROPER PERSPECTIVE. THEREFORE, THE ADDITION OF RS.7,73,748/- ON THE BASIS OF AIR INFORMATION IS NOT AT ALL JUSTIFIED AND THE SAME MAY BE DELETED. 2. THE LD. CIT(A) FAILED TO APPRECIATE THAT THE APPELLANT HAS FURNISHED ALL THE RELEVANT DETAILS DURING THE COURSE OF ASSESSMENT PROCEEDINGS AS WELL AS APPELLATE PROCEEDINGS TO RECONCILE THE TRANSACTIONS UNDERTAKEN DURING THE IMPUGNED ASSESSMENT YEAR. THE APPELLANT, THEREFORE, PRAYS THAT ADDITION OF RS.7,73,748/- IS NOT AT ALL JUSTIFIED AND HENCE, THE SAME MAY BE DELETED. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSES SEE STATED THAT THERE WAS A DIFFERENCE BETWEEN ITS DETAILS AS PER A IR AND INCOME FROM 3 ITA NOS. 147/MUM/2017 PROFIT AND LOSS ACCOUNT IN REGARD TO PAYMENTS MADE BETWEEN THE FOLLOWING PARTIES: - S. NO. NAME OF THE PARTY DIFFERENT (RS.) 1. AMO GROUP 70000 2. ASIA MOTOR WORKS LTD. 38,36,250 3. ATLAS COPCO (I) LTD. 42300 4. BIRLA SUNLIFE ASSET MANAGEMENT CO. 32,852 5. HSIL LTD. 2,655 6. HARD CASTLE RESTAURANT P. LTD. 5,05,983 7. MONEY GRAM INDIA P. LTD. 20,999 4. THE LEARNED COUNSEL STATED THAT ASIA MOTOR WORKS LTD., THE ASSESSEE COULD NOT COLLECT THE DETAIL AND CIT(A) HA S NOT PROVIDED THE OPPORTUNITY TO RECONCILE THE FIGURES REGARDING BALA NCE SUM OF 6,74,789/- AT SERIAL NO. 1,3,4,5,6 ABOVE. HENCE, THE CIT(A) WI THOUT PROVIDING THE OPPORTUNITY CONFIRMED THE ADDITION. THE LEARNED COU NSEL FOR THE ASSESSEE STATED THAT HE HAS COLLECTED ALL EVIDENCES AND FILE D THE DETAILS IN ASSESSEES PAPER BOOK CONSISTING OF PAGES AT 1 TO 5 6. THE LEARNED COUNSEL FOR THE ASSESSEE STATED THAT THESE DETAILS CAN BE VERIFIED AND FOR THIS, MATTER CAN BE REFERRED BACK TO THE FILE OF TH E ASSESSING OFFICER. ON QUERY FROM THE BENCH THE LEARNED SR. DEPARTMENTAL R EPRESENTATIVE HAS NOT OBJECTED FOR SENDING THE MATTER BACK TO THE FIL E OF THE ASSESSING OFFICER. 5. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE ASSESSE E HAS FILED COMPLETE DETAILS OF RECONCILIATION IN RESPECT OF THESE SIX P ARTIES REGARDING DIFFERENCE OF 6,74,789/-. WE FEEL THAT THESE EVIDENCES NEED VERI FICATION AND HENCE, THIS MATTER IS REMANDED BACK TO THE FILE OF THE AO FOR EXAMINATION AND 4 ITA NOS. 147/MUM/2017 ADJUDICATION AFRESH. MATTER IS REMANDED BACK TO THE FILE OF THE CIT(A) AND THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTIC AL PURPOSES. 6. IN THE RESULT, THE APPEALS OF ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05 -11- 2018. AADOSA KI GAAOYANAA KULAO MAO IDNAMK AADOSA KI GAAOYANAA KULAO MAO IDNAMK AADOSA KI GAAOYANAA KULAO MAO IDNAMK AADOSA KI GAAOYANAA KULAO MAO IDNAMK 05 -11- 2018 KAO KI GA[ KAO KI GA[ KAO KI GA[ KAO KI GA[- -- - . .. . SD/- SD/- SD/-SD SD/- ( / MANOJ KUMAR AGGARWAL) ( /MAHAVIR SINGH) ( / ACCOUNTANT MEMBER) ( / JUDICIAL MEMBER) , - / MUMBAI, DATED: 05 -11-2018 , . / SUDIP SARKAR, SR.PS / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. $%! / THE RESPONDENT. 3. 0' ( ) / THE CIT(A) 4. 0' / CIT 5. 345 $'67 , ( 67 , / DR, ITAT, MUMBAI 6. 589 / GUARD FILE. / BY ORDER, %3 ' $' //TRUE COPY// / ( ASSTT. REGISTRAR) #$, / ITAT, MUMBAI