Shree Raghav Ispat (India) Private Limited, Hyderabad, Hyderabad V. ITO, Ward-3(1), Hyderabad, Hyderabad

ITA 1673/HYD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2656 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 31-07-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 09-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SREEKAR
• Assessee Lawyers: S RAMA RAO
• Keywords: Unexplained cash credit; Additional evidence
• Section: 143(3); 133(6); 68

Judgement Text

ITA NO 1673 OF 2016 SHREE RAGHAV ISPTA INDIA P LTD HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A (SMC) BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1673/HYD/2016 (ASSESSMENT YEAR: 2012-13) SHREE RAGHAV INSPAT (INDIA) PRIVATE LIMITED AZAMABAD, HYDERABAD PAN: AANCS 6181 J VS INCOME TAX OFFICER WARD 3(1) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SHRI V. SREEKAR, DR O R D E R THIS IS ASSESSEES APPEAL FOR THE A.Y 2012-13. IN T HIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE CIT (A)-3, HYDERABAD, DATED 9.9.2016. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN DECIDING THE APPEAL WITHOUT PROVIDING PROPER OPPORTUNITY TO THE APPELLANT. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE GRANTED OPPORTUNITY AS REQUESTED BY THE APPELLANT. 3. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN TREATING THE SHARE APPLICATION DATE OF HEARING : 24.08.2017 DATE OF PRONOUNCEMENT : 31.08.2017 ITA NO 1673 OF 2016 SHREE RAGHAV ISPTA INDIA P LTD HYDERABAD PAGE 2 OF 4 MONEY RECEIVED OF RS.19,50,000/- FROM EVER NEW CONCLAVE PVT. LTD. AS UNEXPLAINED CASH CREDIT U/S 68 OF THE I.T. ACT. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE CONSIDERED THE FACT THAT THE SHARE PREMIUM IS A CAPITAL RECEIP T AND IS NOT TAXABLE. 4. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN TREATING THE SHARE APPLICATION MONEY RECEIVED OF RS.9,75,000/- FROM FASATER TRADE VENTURES PVT. LTD. AS UNEXPLAINED CASH CREDIT U/S 68 OF THE I.T.ACT. 5. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE LEVY OF INTEREST U/S 234A,234B AND 234C OF THE I.T.ACT. 6. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY FILED ITS RETURN OF INCOME FOR THE A.Y 2011-12 ON 22 .01.2013 ADMITTING A TOTAL INCOME OF RS.17,88,100. DURING TH E ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE AO OBSERVED THAT THE ASSESSEE HAS SHOWN TO HAVE RECEIVED SHARE PREMIUM O F RS.1,21,87,500 DURING THE YEAR FROM VARIOUS COMPANI ES. IN ORDER TO VERIFY THE VERACITY OF THE ASSESSEES CLAIM OF L OSS, THE AO ISSUED NOTICES U/S 133(6) TO THE COMPANIES TO FURNISH THE PROOF OF SHARE APPLICATION MONEY DEPOSITED DURING THE FINANCIAL YE AR 2011-12. EXCEPT FOR 2 COMPANIES I.E. EVERNEW CONCLAVE PVT LT D AND FASTER TRADE VENTURES PVT LTD, ALL THE OTHER COMPANIED FIL ED CONFIRMATION LETTERS. THE AO, HOLDING THAT THE ASSESSEE COULD NO T ESTABLISH THE IDENTITY AND THE CAPACITY OF THE PERSONS IN THE CAS E OF EVERNEW CONCLAVE PVT LTD AND FASTER TRADE VENTURES PVT LTD, CONFIRMED ITA NO 1673 OF 2016 SHREE RAGHAV ISPTA INDIA P LTD HYDERABAD PAGE 3 OF 4 THE ADDITION TO THE EXTENT OF THEIR DEPOSIT OF SHAR E PREMIUM OF RS.29,25,000. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO CONFIRMED THE ORDER OF THE AO OBSER VING THAT THE ASSESSEE HAS NOT APPEARED ON VARIOUS DATES OF HEARI NG AND HAS NOT SUBMITTED ANY INFORMATION IN SUPPORT OF ITS CON TENTIONS. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE THIS TRIBUNAL. 3. THE LEARNED COUNSEL FOR THE ASSESSEE HAS FILED ADDITIONAL EVIDENCE BEFORE THIS TRIBUNAL AND SOUGHT ADMISSION OF THE SAME. THE ADDITIONAL EVIDENCE CONTAINED THE CON FIRMATION LETTERS FROM THE ABOVE TWO COMPANIES ALONG WITH THE IR FINANCIALS TO PROVE THEIR IDENTITY, CREDITWORTHINESS AND GENUI NENESS OF THE TRANSACTIONS. THE LEARNED COUNSEL FOR THE ASSESSEE THEREFORE, PRAYED THAT THE ADDITIONAL EVIDENCE BE ADMITTED AND REMANDED TO THE FILE OF THE AO FOR VERIFICATION. 4. THE LEARNED DR WAS ALSO HEARD. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, I FIND THAT THE ASSESSEE COULD NOT PROVE THE GENUINENESS OF THE TRANSACTIONS, IDENTIFY AND CREDI TWORTHINESS OF THE RESPECTIVE PARTIES DUE TO WHICH THE ADDITION HA S BEEN CONFIRMED BY THE CIT (A). SINCE THE ASSESSEE HAS FI LED THE RELEVANT DETAILS BEFORE US IN THE FORM OF ADDITIONAL EVIDENC E, I AM INCLINED TO ADMIT THE SAME AND TO REMAND THE ISSUE TO THE FI LE OF THE AO WITH A DIRECTION TO VERIFY THE SAME. I AM OF THE OP INION THAT IF IT IS FOUND TO BE IN ORDER, NO ADDITIONS ARE TO BE MADE. ITA NO 1673 OF 2016 SHREE RAGHAV ISPTA INDIA P LTD HYDERABAD PAGE 4 OF 4 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST AUGUST, 2017. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 31 ST AUGUST, 2017. VINODAN/SPS COPY TO: 1 SHRI S.RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYA'S E LEGANCE, 3-6- 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 INCOME TAX OFFICER WARD 3(1) I.T. TOWERS, SIGNATU RE TOWERS, KONDAPUR HYDERABAD 3 CIT (A)-3 HYDERABAD 4 PR. CIT 3 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER