DONG SUNG AUTOMOTIVE INDIA PRIVATE LIMITED, KANCHIPURAM V. ITO CORPORATE WARD 1 (4), CHENNAI

ITA 1545/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5337 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 08-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAILENDRA MAMIDIPCIT
• Assessee Lawyers: R SANDEEP BAGMAR
• Keywords: Unexplained cash credit; Corroborative evidences
• Section: 133(6)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.1545/CHNY/2018 / ASSESSMENT YEAR: 2013-14 M/S. DONG SUNG AUTOMOTIVE INDIA PVT. LTD., NO. 112, SINGADIVAKKAM VILLAGE, KANCHIPURAM TALUK, KANCHIPURAM DT. 631 561. [PAN: AACCD4171G] VS. THE INCOME TAX OFFICER, CORPORATE WARD I, CHENNAI 600 034. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI R. SANDEEP BAGMAR, ADVOCATE / RESPONDENT BY : SHRI SAILENDRA MAMIDI, PCIT / DATE OF HEARING : 17.01.2019 /DATE OF PRONOUNCEMENT : 29.01.2019 / 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) 4, CHENNAI, DATED 08.02.2018 RELEVANT TO THE ASSESSMENT YEAR 2013-14. BESIDES CHALLENGING THE CONFIRMATION OF ADDITION ON THE OUTSTANDING AMOUNT PAYABLE TO HWASHIN AUTOMOTIVE INDIA PVT. LTD. AS UNEXPLAINED CREDIT AMOUNTING TO .28,26,32,529/-, THE ASSESSEE HAS RAISED A SPECIFIC GROUND THAT THE AUTHORITIES BELOW HAVE NOT GIVEN SUFFICIENT OPPORTUNITY OF BEING I.T.A. NO. 1545/CHNY/18 2 HEARD TO THE ASSESSEE FOR FILING SUPPORTING EVIDENCE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-14 ON 29.11.2013 DECLARING TOTAL LOSS OF . 3,07,67,330/- AND THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS. AGAINST, STATUTORY NOTICES, THE ASSESSEE FURNISHED DETAILS. FROM THE DETAILS FURNISHED BY THE ASSESSEE, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD CLAIMED LIABILITIES OF . 22,78,78,841/- AS SUNDRY CREDITORS PAYABLE TO M/S. HWASHIN AUTOMOTIVE INDIA P LTD. FURTHER, AGAINST THE SAME CREDITOR, AN AMOUNT OF . 4,57,53,728/- WAS SHOWN AS BALANCE AS ON 31.03.2013. MOREOVER, THE ASSESSEE HAD SHOWN TERM LOAN TO THE TUNE OF . 90,00,000/- RECEIVED FROM M/S. HWASHIN AUTOMOTIVE INDIA P. LTD. WHEN NOTICE UNDER SECTION 133(6) OF THE ACT WAS ISSUED TO THE CREDITOR WITH REGARD TO THE ABOVE CREDIT/LOAN, NO RESPONSE WAS RECEIVED. THUS, THE ASSESSING OFFICER TREATED THE ABOVE AS UNEXPLAINED AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE AGAINST WHICH, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). SINCE NONE APPEARED ON BEHALF OF THE ASSESSEE OR ANY WRITTEN SUBMISSIONS FURNISHED BY THE ASSESSEE, THE LD. CIT(A) ADJUDICATED THE MATTERS BASED ON THE MATERIALS AVAILABLE ON RECORD AND DISMISSED THE APPEAL FILED BY THE ASSESSEE. I.T.A. NO. 1545/CHNY/18 3 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. DESPITE FILING ADJOURNMENT PETITION WITH A PRAYER TO POST THE APPEAL FOR HEARING IN THE FIRST WEEK OF JANUARY, 2018, THE LD. CIT(A) ERRONEOUSLY REJECTED THE PETITION AND PASSED EX-PARTE ORDER. BY FILING COPY OF THE LETTER OF M/S. HWASHIN AUTOMOTIVE INDIA PVT. LTD. CONTAINING THE INFORMATION CALLED FOR UNDER SECTION 133(6) OF THE ACT BY THE ASSESSING OFFICER, THE LD. COUNSEL FOR THE ASSESSEE HAS PRAYED FOR DELETING THE ADDITION OF UNEXPLAINED CREDIT AMOUNTING TO .28,26,32,529/-. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORDER PASSED BY THE LD. CIT(A). HOWEVER, THE LD. DR HAS SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. SINCE THE ASSESSEE FAILED TO FURNISH THE DETAILS AS WELL AS THE CREDITOR HAS NOT RESPONDED TO THE NOTICE UNDER SECTION 133(6) OF THE ACT, THE CLAIMS OF THE ASSESSEE WERE TREATED AS UNEXPLAINED CREDIT/LOAN, ETC., WHICH WAS CONFIRMED BY THE LD. CIT(A), BY REJECTING THE ADJOURNMENT PETITION FILED BY THE ASSESSEE PRAYING FOR PASTING THE APPEAL IN JANUARY, 2018. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE FILED A LETTER DATED 06.04.2016 ADDRESSED TO THE ASSESSING OFFICER BY CREDITOR M/S. HWASHIN AUTOMOTIVE INDIA PVT. LTD. FURNISHING THE INFORMATION AS CALLED FOR UNDER SECTION 133(6) OF THE ACT. I.T.A. NO. 1545/CHNY/18 4 ACCORDINGLY, WE DIRECT THE LD. CIT(A) TO AFFORD SUFFICIENT OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE FOR FURNISHING THE DETAILS, AS WAS FILED BEFORE THE TRIBUNAL AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 29 TH JANUARY, 2019 IN CHENNAI. SD/ - SD/ - (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 29.01.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.