Dy.Commissioner of Income Tax, Circle-2(2), Hyderabad V. Good Health Agro Tech Private Limited , Hyderabad

ITA 1575/Hyd/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4362 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-10-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 12-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M NARMADA
• Assessee Lawyers: C V NARASIMHAM
• Keywords: Bogus Share capital; Tax effect
• Section: 68

Judgement Text

ITA NO 1575 OF 2017 GOOD HEALTH AGRO TECH P LTD HY DERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.1575/HYD/2017 (ASSESSMENT YEAR: 2013-14) DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(2) HYDERABAD VS GOOD HEALTH AGRO TECH PRIVATE LIMITED HYDERABAD PAN: AAACG7494F (APPELLANT) (RESPONDENT) FOR REVENUE : SMT. M. NARMADA, DR FOR ASSESSEE: SHRI C.V. NARASIMHAM O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2013-14 AGAINS T THE ORDER OF THE CIT (A)-2, HYDERABAD, DATED 30.06. 2017. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE CIT (A) ERRED BOTH ON FACTS OF THE CASE AN D IN LAW. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHET HER THE CIT (A) IS CORRECT IN LAW IN HOLDING THAT THE ASSES SEE HAD DISCHARGED ITS ONUS OF ESTABLISHING THE BONAFIDE OF THE TRANSACTIONS EVEN THOUGH NEITHER THE ASSESSEE NOR T HE CREDITORS COULD SUBSTANTIATE THEIR CLAIM TO THE SAT ISFACTION OF AO. 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHET HER THE CIT (A) IS CORRECT IN LAW IN DELETING ADDITION MADE U/S 68 TOWARDS UNEXPLAINED SHARE CAPITAL/SHARE APPLICATION MONEY OF INVESTOR COMPANY WHICH HAS MADE HUGE INVESTMENTS, WITHOUT CONSIDERING THE CREDIT WORTHIN ESS OF THESE COMPANIES. DATE OF HEARING : 23.10.2018 DATE OF PRONOUNCEMENT: 31.10.2018 ITA NO 1575 OF 2017 GOOD HEALTH AGRO TECH P LTD HY DERABAD. PAGE 2 OF 3 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME O F HEARING. 2. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT OF THE ADDIT ION WHICH IS CHALLENGED BEFORE THE TRIBUNAL IS LESS THAN RS.20.0 0 LAKHS. WE FIND THAT THE ADDITION MADE U/S 68 TOWARDS UNEXPLAI NED SHARE CAPITAL IS ONLY OF RS.40.00 LAKHS AND THE TAX EFFEC T IS ADMITTEDLY LESS THAN RS.20.00 LAKHS. THE LEARNED DR ALSO CONFI RMED THE ABOVE FACT. THEREFORE, IN VIEW OF THE CBDT CIRCULAR NO. 03/2018, DATED 11.07.2018 AND CONSIDERING THE FACT THAT THE TAX EFFECT IN THE INSTANT APPEAL IS LESS THAN RS.20 LAKHS, THE PR ESENT APPEAL DESERVES TO BE DISMISSED AS NOT PRESSED/NOT MAINTAI NABLE. HOWEVER, WE MAKE IT CLEAR THAT THE ISSUES RAISED IN THE INSTANT APPEAL IS LEFT OPEN TO BE EXAMINED IN THE APPROPRIA TE PROCEEDINGS, IF ARISES, IN FUTURE. AT THE SAME TIM E, WE ALSO MAKE IT CLEAR THAT IF THE APPEAL FALLS IN ANY OF TH E EXCEPTIONS REFERRED TO IN THE ABOVE SAID CBDT CIRCULAR, THE RE VENUE IS AT LIBERTY TO MOVE AN APPLICATION FOR RECALL THE ORDER , IF SO, ADVISED. 3. ACCORDINGLY, IN THE LIGHT OF CBDT CIRCULAR NO. 03/2018 DATED 11.07.2018, THE APPEAL STANDS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2018. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 31 ST OCTOBER, 2018. VINODAN/SPS ITA NO 1575 OF 2017 GOOD HEALTH AGRO TECH P LTD HY DERABAD. PAGE 3 OF 3 COPY TO: 1 DY.CIT, CIRCLE 2(2), ROOM NO.513, 5 TH FLOOR, SIGNATURE TOWERS, KONDAPUR, HYDERABAD 2 M/S. GOOD HEALTH AGROTECH PVT. LTD, 1-8-663, AZAM ABAD INDUSTRIAL AREA, RTC X ROAD, HYDERABAD 500020 3 CIT (A)-2 HYDERABAD 4 PR. CIT 2 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER