Shri Noor Shergil, Assistant Official Liquidator, High Court, Bombay as an official liquidator for M/s SRK Sheltors P Ltd., Pune V. Deputy Commissioner of Income-tax, Circle - 6, Pune

ITA 185/PUN/2018

AI Insights

The case involves M/s. SRK Shelters Pvt. Ltd., which appealed against the order of the CIT(A)-4, Pune, concerning the assessment year 2012-2013. The primary issue was the addition of Rs. 3 lakhs to the assessee's income, alleged to be unexplained deposits in a bank account. The Assessing Officer (AO) had made this addition based on Income Tax Surveillance (ITS) details, which the assessee contested, claiming the transaction did not pertain to them. The CIT(A) upheld the AO's decision, leading to the appeal before the Income Tax Appellate Tribunal. The Tribunal, after reviewing the submissions and evidence, concluded that the addition was made without concrete evidence linking the deposits to the assessee, leading to the allowance of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137346 (ITAT-PUNE)
• Duration Of Justice: 5 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: B
• Next Hearing Date: 23-02-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 18-01-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANMOHAN RAO
• Keywords: Liquidation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA.No.185/PUN./2018 Assessment Year 2012-2013 M/s. SRK Shelters Pvt. Ltd., [In Liquidation] Through Official Liquidator attached to the Bombay High Court, 5 th Floor, Bank of India Building, Mahatma Gandhi Road Fort, Mumbai - 400 023. PAN AANCS8018A vs. The Dy. Commissioner of Income Tax, Circle-6, 3 rd Floor, PMT Building, Shankarsheth Road, Swargate, Pune – 411 037 Maharashtra. (Appellant) (Respondent) For Assessee : Shri Manmohan Rao For Revenue : Shri M.G. Jasnani Date of Hearing : 24.02.2023 Date of Pronouncement : 27.02.2023 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s appeal ITA.No.185/PUN./2018, for assessment year 2012-13, arises against the CIT(A)-4, Pune’s order dated 13.11.2017, passed in case Nos.PN/CIT(A)-4/DCIT Circle-6, Pune/53/2015-16/656, in proceedings u/s. 143(3) of the Income Tax Act, 1961 (in short "the Act"). Heard both the parties at length. Case file perused. 2. Coming to the assessee’s sole substantive ground raised in the instant appeal that both the learned lower authorities have erred in law and on facts in adding the 2 ITA.No.185/PUN./2018 M/s. SRK Shelters Pvt. Ltd., Pune. alleged unexplained unaccounted deposits of Rs.3 lakhs in its bank account, we note that the CIT(A)'s lower appellate discussion affirming the assessment findings to this effect reads as follows : “8. GROUND NO.7 & 8: In these grounds, the Ld. AO erred in making an addition of Rs. 3 lakhs on account of unexplained deposit in its bank account in Oriental Bank of Commerce (OBC) on the basis of ITS details without appreciating that the assessee had not made any such unaccounted deposit of Rs. 3 lakhs in its bank account. 8.1. OBSERVATION OF THE AO : During the scrutiny proceedings, the Ld.AR was handed over the ITS details generated from the system software for submission of reconciliation thereof. The ITS details contained details of deposit of Rs.3 lacs to the bank account of the assessee with Oriental Bank of Commerce. In response, the Ld.AR stated that the said transaction does not pertain to it. The copy of some hank statements was also enclosed. On perusal of the submission vis-a-vis ITS details, even though the account number is not clear visible in the ITS details, it was seen that the same is ending with 13, however, the copy of statements furnished did not include any details of any such bank account. Accordingly, the 3 ITA.No.185/PUN./2018 M/s. SRK Shelters Pvt. Ltd., Pune. Assessing Officer added this amount to the total income of the assessee. 8.2 SUBMISSION OF THE LD.AR: During the appellate proceedings, the Ld.AR has not made any submissions to this ground. 8.3. DECISION : As no submissions have been made by the appellant during the appellate proceedings, it indicates the consent of the appellant for such additions/ disallowances made by the AO. Therefore, no interference in AO’s order is called for. Ground no. 7 & 8 raised by the appellant are accordingly dismissed.” 3. We have given our thoughtful consideration to the rival submissions and note that there is hardly any need for us to delve deeper in the relevant factual matrix. This is for the precise reason that the Revenue could not dispute the clinching fact of the learned lower authorities having simply gone by the alleged ITS details stating the corresponding Oriental Bank account having ending with digits as “13” only rather than giving a categoric finding of the fact that the said unaccounted deposits had been made on a particular date at it’s behest. Faced with the situation, we conclude that the impugned vague addition without any corroborative evidence 4 ITA.No.185/PUN./2018 M/s. SRK Shelters Pvt. Ltd., Pune. has no legs to stand in the eyes of law. The same stands deleted in very terms. 4. This assessee’s appeal is allowed. Order pronounced in the open Court on 27.02.2023. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 27 th February, 2023 VBP/- Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(A)-4, B.O. Bhavan, Pune-Satara Road, Bibwewadi Corner, Parvati, Pune-411 009. 4. The Pr. CIT-3, Pune. 5. D.R. ITAT, Pune “B” Bench, Pune 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.