ARPAN LEASING CO. LTD, MUMBAI V. ITO 2(1)(1), MUMBAI

ITA 1553/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9306 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-05-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 07-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITRA
• Keywords: Additional evidence
• Section: 147; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 1553 / MUM/20 1 7 ( ASSESSMENT YEAR : 2010 - 11 ) M/S. ARPAN LEASING CO.LTD., 297, TARDEO RD, WILLE MANSION, 1 ST FLOOR, OPP. BANK OF INDIA, NANA CHOWK, MUMBAI 40000 7 VS. ITO 2(1)(1) AAYAKAR BHAVAN R.NO.561, 5 TH FLOOR M.K. MARG, MUMBAI - 400020 PAN/GIR NO. AAIFK0801B APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI RAJKUMAR SINGH REVENUE BY SHRI S.K. MITRA DATE OF HEARING 06/09 / 201 7 DATE OF PRONOUNCEME NT 20 / 09 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 3, MUMBAI DATED 23/01/2017 FOR A SSESSMENT YEAR 2010 - 11 IN THE MATTER OF EX - PARTE ORDER PASS ED U/S.144 R.W.S. 147 OF THE IT ACT. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. 3. FACTS IN BRIEF ARE THAT ASSESSEE IS ENGAGED IN THE BUSINESS OF LEASE FINANCING AND HIRE PURCHASE. IT WAS SUBMITTED BY LEARNED AR THAT ASSESSEE DID NOT CARRY OU T ANY REVENUE GENERATING ACTIVITIES SINCE 01/04/2007 AND THEREFORE, IN THE YEAR UNDER CONSIDERATION, THERE WAS NO TAXABLE INCOME. ON THE BASIS OF AIR INFORMATION, ASSESSMENT WAS REOPENED. HOWEVER, AO PASSED ORDER U/S.144 WHEREIN ADDITION WAS MADE ITA NO. 1553/MUM/2017 M/S. ARPAN LEASING CO. LT D., 2 ON ACCOUN T OF AMOUNT DEPOSITED IN THE CASH WITH UCO BANK, MUMBAI DURING THE YEAR. 4. BEFORE THE CIT(A), ASSESSEE FILED ADDITION AL EVIDENCE TO SUBSTANTIATE DEPOSITING OF MONEY IN BANK ACCOUNT WHEREIN ASSESSEE HAS FILED FOLLOWING DOCUMENTS: - A. CONFIRMATION LETTER AL ONGWITH COPY OF PAN CARD OF DINESH DEVJI SHAH (PROP. OF DINESH DECORATORS CATERERS) B. CONFIRMATION LETTER OF K P ENGINEERING CO., C. CONFIRMATION LETTER OF S. ASHWINIKUMAR & CO. FROM THE BOOKS OF ASSESSEE COMPANY AND THE SAID PARTY 5 . THE CIT(A) HAS DISM ISSED ASSESSEES APPLICATION UNDER RULE 46A ON THE PLEA THAT ASSESSEE HAS NOT EX PLAINED SUFFICIENT CAUSE WHICH PREVENTED HIM FROM PRODUCING THE EVIDENCE DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 6 . I FOUND THAT AS ASSESSEE COMPANY WAS EARLIER ENGAGED IN LEASE FINANCING BUSINESS HAS BECOME ALMOST DORMANT COMPANY SINCE 01/04/2007 NOT HAVING ANY REVENUE GENERATING ACTIVITY AND ITS NBFC LICENSE WAS ALSO CANCELLED BY RBI IT WAS NOT HAVING ANY MAN POWER AND EMPLOYEES ON ITS OWN PAYROLL. SINCE THERE WAS NO REVE NUE GENERATING BUSINESS ACTIVITY IN THE CASE OF ASSESSEE COMPANY SINCE 01/04/2007 AND IT WAS NOT HAVING ANY EMPLOYEE ON ITS PAYROLL THE BOOKS OF ACCOUNT WERE NOT WRITTEN SINCE THEN NOR AUDIT WAS DONE HENCE INCOME TAX RETURN FOR ANY ASSESSMENT YEAR SINCE 20 08 - 09 COULD NOT BE FILED. ASSESSEE COMPANY WAS ALMOST A DORMANT COMPANY HAVING NO BUSINESS ACTIVITY AFTER THE ABOVE STATED PERIOD. FOR THE AFORESAID BONAFIDE REASONS THE NOTICES ITA NO. 1553/MUM/2017 M/S. ARPAN LEASING CO. LT D., 3 ISSUED BY THE LD. AO HAS REMAINED NON - COMPILED WHICH HAS LEAD IN PASSING OF TH E EX - PARTE BEST JUDGMENT ASSESSMENT ORDER U/S. 144 AND ADDITION OF RS.21,94,618/ - , BEING AGGREGATE DEPOSIT IN BANK ACCOUNTS OF ASSESSEE COMPANY IN THE ABOVE ASSESSMENT YEAR, AS INCOME OF THE ASSESSEE COMPANY. 7. FROM THE RECORD, I FOUND THAT THE ASSESSEE A LSO FILED APPLICATION UNDER RULE 46A. HOWEVER, THE CIT(A) REJECTED THE ADDITIONAL EVIDENCE. AS PER MY CONSIDERED VIEW, THE ADDITIONAL EVIDENCE SO FILED BEFORE CIT(A) GOES TO THE ROOT OF THE ISSUE. KEEPING IN VIEW THE EXPARTE ORDER PASSED BY AO AND IN THE S UBSTANTIAL INTEREST OF JUSTICE, I RESTORE THE MATTER BACK TO THE FILE OF THE AO WITH A DIRECTION TO CONSIDER THE ADDITIONAL EVIDENCE SO FILED AND FOR DECIDING THE ISSUE AFRESH. 8. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. O RDE R PRONOUNCED IN THE OPEN COURT ON THIS 20 / 09 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 20 / 09 /2 01 7 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//