M/s Rana Milk Food Pvt. Ltd., Samrala V. DCIT, Circle, Khanna

ITA 1572/CHANDI/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9574 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-05-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 16-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence

Judgement Text

ITA NO. 1572/CHD/2017- M/S RANA MILK FOOD PVT LTD., SAMRALA 2 TRANSACTIONS AND CREDITWORTHINESS HAS BEEN PROVED AND ASSESSING OFFICER AFTER CONSIDERING THE ADDITIONAL EVIDENCE FILED HAVE CONFIRMED THAT CREDITS ARE FULLY EXPLAINED. THE CIT(A) HAVE ERRED IN CONFIRMING THE ADDITION WITHOUT CONSIDERING THE ASSESSING OFFICER REPORT. 2. THAT THE APPELLANT CRAVES LEAVE TO ADD DELETE OR MODIFY ANY GROUND OF APPEAL BEFORE THE SAME IS HEARD OR DISPOSED OFF. 3. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS RELATI NG TO THE CONFIRMATION OF ADDITION MADE BY THE ASSESSING OFFI CER OF RS. 29,50,000/- U/S 68 OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') ON ACCOUNT OF THE SHARE CAPITAL AND PREMIUM. THE ASSE SSING OFFICER NOTED THAT THE ASSESSEE DURING THE YEAR HAD RECEIVED CERT AIN AMOUNTS FROM THREE PERSONS TOTALLY RS. 29.50 LACS THROUGH CHEQUE S / BANKING CHANNELS. THE ASSESSING OFFICER ASKED THE ASSESSEE TO PROVE THE CREDITWORTHINESS OF THE FOLLOWING PERSONS:- I) SHRI LEKH RAJ INVESTMENT OF RS. 5 LACS II) SHRI PARMINDER SINGH INVESTMENT OF RS. 15 LACS III) SMT.SWARNA RANI INVESTMENT OF RS. 9.5 LACS 4. THE ASSESSEE PRODUCED THE AFORESAID PERSONS BEFO RE THE ASSESSING OFFICER WHO CONFIRMED THE TRANSACTIONS AND THEY ALS O FURNISHED THEIR RESPECTIVE AFFIDAVITS IN THIS RESPECT. HOWEVER, THE ASSESSING OFFICER DID NOT GET SATISFIED WITH THE EXPLANATION GIVEN BY THE INVESTORS AND HELD THAT THE ASSESSEE HAD FAILED TO PROVE THE FINANCIAL CAPACITY OF THE AFORESAID PERSONS TO MAKE THE INVESTMENT IN QUESTIO N IN THE ASSESSEES ITA NO. 1572/CHD/2017- M/S RANA MILK FOOD PVT LTD., SAMRALA 4 RS. 1,21,357/-, RS. 5,928. RS. 7,76,591/- AND RS. 3 8.236/- WERE TRANSFERRED FROM THE SWEEP-IN CREDIT ACCOUNTS NOS. 06064470047271 AND 06064470047711 RESPECTIVELY, TO HDFC BANK ACCOUNT NO. 06061000020957. FURTHER, THE DOCUMENTS SUBMITTED I.E. AFFIDAVIT AND CONFIRMATION OF SH. HARISH BAWEJA SON AND LEGAL HEIR OF SMT. SWARNA RAN I IN WHICH IT IS STATED THAT SOURCE OF INVESTMENT IN THE SHARES OF ASSESSEE COMPANY WAS 'O.D. LIMIT' ACCOUNT IN HDFC B ANK LIMITED, SUPPORT THE CONTENTION OF THE ASSESSEE. TH EREFORE, THE SOURCE IN THE CASE OF SMT. SWARNA RANI STANDS EXPLA INED. . 4.3 THEREFORE, AFTER PERUSING THE BANK STATEM ENTS OF SH. LEKH RAJ AND SUBMISSIONS OF THE ASSESSEE IT APPEARS THAT SO FAR AS THE SOURCE OF INVESTMENT IN SHARES OF M/S RA NA MILK FOODS PVT. LTD BY SH. LEKH RAJ IS CONCERNED, THE SA ME IS EXPLAINED IN THE CASE OF M/S RANA MILK FOODS PVT. L TD. HOWEVER, SINCE THE CASH WITHDRAWALS FROM SBOP SAVIN G ACCOUNT AND SBOP LOAN ACCOUNT ARE TIME-SPACED, THE CASE OF SH. LEKH RAJ FOR A.Y. 2013-14 MAY BE RE-OPENED BY T HE CONCERNED AO TO CHECK THE SOURCE OF DEPOSIT OF RS. 5 LACS IN HIS PNB ACCOUNT. IN ANY CASE, THE SOURCE OF INVESTM ENT IN THE SHARES OF M/S RANA MILK FOODS PVT. LTD BY SH. LEKH RAJ STANDS EXPLAINED. 5.4 THEREFORE,, AS FAR AS, THE SOURCE OF INVESTMEN T IN SHARES OF M/S RANA MILS FOODS PVT LTD BY SHRI PARMI NDER SINGH IS CONCERNED, THE SAME IS EXPLAINED IN THE CA SE OF M/S RANA MILK FOODS PVT LTD., HOWEVER, GIVEN THE SERIES OF CASH DEPOSITS AND WITHDRAWAL IN THE CASE OF SHRI PARMIND ER SINGH, HIS CASE FOR ASSESSMENT YEAR 2013-14 AND 2014-15 MA Y BE REOPENED BY THE CONCERNED ASSESSING OFFICER TO CHEC K THE SOURCE OF DEPOSIT OF RS. 15 LACS IN HIS PNB ACCOUNT . HOWEVER, THE LD. CIT(A) IGNORING THE ABOVE REPORT, CONFIRMED THE ADDITIONS BASED ON THE INITIAL FINDINGS GIVEN BY TH E ASSESSING OFFICER IN THE ASSESSMENT ORDER.