Sri Vinayaka Paper & Boards Limited, Hyderabad V. DCIT., Circle-3(2), Hyderabad, Hyderabad

ITA 1883/HYD/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0352 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-03-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 11-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 1883/HYD/2014 ASSESSMENT YEAR: 2010-11 SRI VINAYAKA PAPER & BOARDS LTD., HYDERABAD [PAN: AAECS6961K] VS THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P. MURALI MOHAN RAO, AR FOR REVENUE : SHRI RAJAT MITRA, DR DATE OF HEARING : 30 - 0 3 - 201 5 DATE OF PRONOUNCEMENT : 17 - 04 - 2015 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS APPEAL BY ASSESSEE IS AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX(APPEALS)-II, HYDERABAD DATED 16-10-20 14, CONFIRMING THE ASSESSING OFFICERS (AOS) ACTION OF TREATING SHAR E APPLICATION MONEY OF RS. 75,98,100 AS UN-EXPLAINED CASH CREDIT. 2. BRIEFLY STATED, ASSESSEE RECEIVED DURING THE YEA R SHARE APPLICATION MONEY OF RS.4.50 CRORES OUT OF WHICH RS.3.00 CRORES WAS CONVERTED TO EQUITY. THESE AMOUNTS WERE RECEIVED FROM 23 PERSON S. AO ASKED FOR CONFIRMATIONS AND ON ASSESSEE FURNISHING DETAILS EN QUIRED AND GOT CONFIRMATION LETTERS. 18 PERSONS CREDITS WERE ACCE PTED AS GENUINE BUT FIVE PERSONS CREDITS WERE NOT ACCEPTED ON THE REASO N THAT NO IDENTITY I.T.A. NO. 1883/HYD/2014 SRI VINAYAKA PAPER & BOARDS LTD., :- 2 -: PROOF WAS FURNISHED. FURTHER, AO HELD THAT THEY AR E NOT INCOME TAX ASSESSEES AS NO PAN WAS MENTIONED. THE DETAILS OF SUCH CREDITS ARE AS UNDER: S.NO. NAME OF THE PERSON OCCUPATION AMOUNT RECEIVED 1. DASARATHA RAMI REDDY BUSINESS 30,45,000 2. LAKSHMI AGRICULTURE 11,00,000 3. SASHIDHAR REDDY AGRICULTURE 10,00,000 4. SRIDHAR REDDY AGRICULTURE 14,03,100 5. Y. SRINIVASULU AGRICULTURE 10,50,000 TOTAL: 75,98,100 3. APART FROM RELYING ON VARIOUS CASE LAW, AO ALSO CONTESTED THAT IT HAS FURNISHED ALL THE DETAILS AND AO ENQUIRED AND G OT CONFIRMATION LETTERS FROM THE PARTIES THEREFORE, GENUINENESS AN D SOURCE OF CREDIT COULD NOT BE DOUBTED. IT ALSO STATED TO HAVE FURN ISHED CONFIRMATION LETTER WITH PAN NUMBER BEFORE LD. CIT(A). LD. CIT( A) HOWEVER, CONFIRMED THE ACTION OF AO. 4. LD. COUNSEL FILING ADDITIONAL EVIDENCE OF CONFIR MATION LETTERS WITH PAN NUMBER OF ABOVE PERSONS STATED THAT THE SAME WA S FILED BEFORE LD. CIT(A), BUT THERE IS NO MENTION OF SAME, SO THE SAM E WAS FILED AS ADDITIONAL EVIDENCE. IT WAS SUBMITTED THAT THE SHA RE APPLICATION MONEY RECEIVED WAS GENUINE. LD. DR SUBMITTED THAT ASSESS EE HAS NOT PROVED GENUINENESS OF THE TRANSACTIONS. 5. WE HAVE CONSIDERED THE FACTS AND ADDITIONAL EVID ENCE. THE ASSESSEE HAS FURNISHED THE DETAILS AND AO HAS MADE ENQUIRIES WITH THE SHARE APPLICANTS. JUST BECAUSE THERE IS NO PAN NUM BER MENTIONED IN CONFIRMATION LETTER, ONE CANNOT DECIDE THAT THE SAI D PERSONS ARE NOT CREDITWORTHY WITHOUT ANY FURTHER ENQUIRY. ASSESSEE HAS NOW FURNISHED CONFIRMATION LETTERS [SAME STEREOTYPED AS CONSIDERE D BY CIT(A) ] BUT WITH PAN NUMBERS. SINCE THESE FIVE PERSONS HAVE PAN NUM BERS, THESE I.T.A. NO. 1883/HYD/2014 SRI VINAYAKA PAPER & BOARDS LTD., :- 3 -: CREDITS ARE ALSO TO BE ACCEPTED AS GENUINE AS WAS D ONE IN OTHER 18 CASES. HOWEVER, SINCE THE CONFIRMATIONS WERE FILED AS ADDI TIONAL EVIDENCE BEFORE US, WE ADMIT THE SAME AND DIRECT THE AO TO EXAMINE AND DECIDE THE GENUINENESS OF SUCH CREDIT AFRESH. FOR THIS PURPOS E, ORDER OF AO AND CIT(A) ARE SET ASIDE WITH A DIRECTION TO REDO THE A SSESSMENT TO THE ABOVE EXENT AS PER FACTS AND LAW. ASSESSEES GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 17 TH APRIL, 2015. SD/- SD/- (SAKTIJIT DEY) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUN TANT MEMBER HYDERABAD, DATED 17 TH APRIL, 2015 TNMM COPY TO : 1. SRI VINAYAKA PAPER & BOARDS LTD., C/O. P. MURALI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD. 2. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(2), HYDERABAD. 3. CIT(APPEALS)-II, HYDERABAD 4. CIT-III, HYDERABAD 5. D.R. ITAT, HYDERABAD