SHK Corporation Pvt. Ltd, Ahmedabad V. The ITO Ward-4(1)(3), Ahmedabad

ITA 1807/AHD/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4962 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 04-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

ITA No.1807/Ahd/2019 Assessment Year: 2015-16 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA No.1807/Ahd/2019 Assessment Year: 2015-16 SHK Corporation Pvt. Ltd., vs. Income Tax Officer, 102, Shail Complex, Ward – 4(1)(3), Ahmedabad. B/h. Girish Cold Drink, Of. CG Road, Navrangpura, Ahmedabad – 380 006. [PAN – AAGCA 6832 M] (Appellant) (Respondent) Appellant by : None Revenue by : Shri Vijay Kumar Jaiswal, DR Date of hearing : 31.08.2022 Date of pronouncement : 21.09.2022 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER : This appeal is filed by the assessee against the order dated 17.09.2019 passed by the CIT(A)-8, Ahmedabad for the Assessment Year 2015-16. 2. The assessee has raised the following grounds of appeal: “1. On the facts and circumstances of the case the Ld. CIT(A) erred in law and facts in upholding that your appellant has received unsecured loan of Rs.9,86,40,100/- during the year under consideration inspite of facts that there were increase in loan amount of Rs.5,75,953/- only and there were total borrowing of Rs.5,91,80,970/- only at the end of the year. And therefore, we humbly request the Hon’ble bench to delete the entire addition of Rs.9,86,40,100/- erroneously upheld by the Hon’ble CIT(A) on this ground. 2. The Hon’ble CIT(A) erred in not passing any order or not giving any comment on interest expenditure. Since the entire interest expense of Rs.23,67,904/- paid to the Banks and not to the depositors. We therefore humbly request the Hon’ble Bench to delete the entire addition of Rs.23,67,904/- on this ground. ITA No.1807/Ahd/2019 Assessment Year: 2015-16 Page 2 of 3 3. On the facts and circumstances of the case the Hon’ble CIT(A) fails to give sufficient opportunity to your appellant to produce the necessary evidences to prove the error committed by our Tax Auditor in reporting of details of unsecured loans accepted during the year under consideration in the Tax Audit Report and pass an order hurriedly, though specific written request, without giving enough time to recheck and re-verification of accounts. And therefore, we humbly request the Hon’ble bench to delete the all addition upheld by the Hon’ble CIT(A) on this ground. 3. The assessee filed return of income on 27.10.2015 declaring total income at Rs.12,45,920/-. The Assessing Officer observed that the assessee has taken or accepted unsecured loans during the year under consideration and called for details. The assessee provided the said details and after going through the same, the Assessing Officer made addition of Rs.9,86,40,100/- as unsecured loans under Section 68 of the Income Tax Act, 1961. The Assessing Officer also disallowed interest expenses of Rs.23,67,904/-. The assessment order was passed on 27.12.2017. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. At the time of hearing, none appeared on behalf of the assessee despite giving notice. The Postal Authority’s remarks were “left”. No new address has been given to the Registry by the assessee. Hence, we are proceeding on the basis of the submissions made before the Assessing Officer as well as before the CIT(A) which are reproduced in their respective orders. 6. The Ld. DR relied upon the assessment order and the order of the CIT(A). 7. We have heard the Ld. DR and perused all the relevant material available on record. It is pertinent to note that the CIT(A) proceeded on the basis of Tax Audit Report and Audited Balance Sheet and Profit & Loss account but the assessee failed to submit any evidence as regards to the loan. The CIT(A) has not given opportunity to the assessee for proving the case related to the specific details of the parties from whom the assessee received ITA No.1807/Ahd/2019 Assessment Year: 2015-16 Page 3 of 3 the loans. Therefore, it will be appropriate to remand back this issue to the file of CIT(A). Needless to say the assessee be given opportunity of hearing by following principles of natural justice. Appeal is, therefore, partly allowed for statistical purpose. 8. In the result, appeal filed by the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 21 st day of September, 2022. Sd/- Sd/- (WASEEM AHMED) (SUCHITRA KAMBLE) Accountant Member Judicial Member Ahmedabad, the 21 st day of September, 2022 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad