M/s Sevenseas Global Express Logistics Private Limited , Bangalore V. The Assistant Commissioner of Income Tax Circle-6(1)(1), Bangalore

ITA 198/BANG/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3351 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-04-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 04-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: SULTAN MOHIUDDIN
• Keywords: Set aside
• Section: 68

Judgement Text

ITA NO.198/BANG/2019 M/S. SEVENSEAS GLOBAL EXPRESS LOGISTICS PVT. LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.198/BANG/2019 ASSESSMENT YEAR: 2013-14 M/S. SEVENSEAS GLOBAL EXPRESS LOGISTICS PVT. LTD. 39/4, SHIVAS, OUTER RING ROAD DODDANEKUNDI, MARATHAHALLI POST BANGALORE 560 037. PAN NO :AAACO8182E VS. ACIT CIRCLE-6(1)(1) BENGALURU APPELLANT RESPONDENT APPELLANT BY : SHRI SULTAN MOHIUDDIN, A.R. RESPONDENT BY : SHRI PRIYADARSHI MISHRA, D.R. DATE OF HEARING : 20.04.2021 DATE OF PRONOUNCEMENT : 14.06.2021 O R D E R PERB.R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER DATED 14.11.2018 PASSED BY LD. CIT(A)-6, BENGALURU AND IT RELATES TO THE ASSESSMENT YEAR 2013-14. THE ASSESSEE IS AG GRIEVED BY THE DECISION OF LD. CIT(A) IN CONFIRMING THE ADDITION O F RS.9 LAKHS MADE BY THE A.O. U/S 68 OF THE INCOME-TAX ACT,1961 ['THE ACT' FOR SHORT]. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. TH E ASSESSEE IS ENGAGED IN THE FREIGHT FORWARDING BUSINESS. THE A. O. DISALLOWED A SUM OF RS.15.25 LAKHS U/S 68 OF THE ACT, WHICH CONS ISTED OF LOAN OF ITA NO.198/BANG/2019 M/S. SEVENSEAS GLOBAL EXPRESS LOGISTICS PVT. LTD., BANGALORE PAGE 2 OF 3 RS.6.25 LAKHS TAKEN FROM SHRI TOTLANI ENTERPRISES A ND RS.9 LAKHS TAKEN FROM M/S. JAYESH ENTERPRISES. THE LD. CIT(A) DELETED THE ADDITION OF RS.6.25 LAKHS RELATING TO SHRI TOTLANI ENTERPRISES. THE LD CIT(A) CONFIRMED THE ADDITION OF RS.9.00 LAKHS R ELATING TO JAYESH ENTERPRISES ON THE REASONING THAT THERE IS DIFFEREN CE IN THE PERMANENT ACCOUNT NUMBER MENTIONED IN THE CONFIRMAT ION LETTER AND IN THE COPY OF FORM NO.16A FILED BY THE ASSESSE E. 3. THE LD. A.R. SUBMITTED THAT THE ASSESSEE HAD TAK EN LOAN FROM M/S. JAYESH ENTERPRISES AND ALSO ANOTHER PERSON NAM ED JAYESH KOTHARI. AT THE TIME OF FILING DOCUMENTS, FORM NO. 16A BELONGING TO JAYESH KOTHARI HAS BEEN FILED INADVERTENTLY. HE SU BMITTED THAT THE ASSESSEE HAS FURNISHED BALANCE CONFIRMATION LETTER AS WELL AS FORM NO.16A ISSUED TO M/S. JAYESH ENTERPRISES IN THE PAP ER BOOK. AS SUCH, THERE IS NO CONFUSION AS PRESUMED BY LD. CIT( A). ACCORDINGLY, THE LD. A.R. SUBMITTED THAT THE ASSESS EE MAY BE PROVIDED WITH AN OPPORTUNITY TO GIVE NECESSARY CLAR IFICATIONS TO THE A.O. IN THIS REGARD. 4. THE LD. D.R. ALSO DID NOT OPPOSE TO THE PLEA OF THE LD. A.R. 5. WE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE THAT THE LD. CIT(A) HAS CONFIRMED THE ADDITION OF RS.9.0 0 LAKHS AVAILED FOR THE REASON THAT THE PAN NUMBER MENTIONED IN THE CONFIRMATION LETTER AND IN FORM NO.16A ARE DIFFERENT. THE ASSES SEE NOW CLARIFIES THAT FORM NO.16A FILED BEFORE LD. CIT(A) ACTUALLY B ELONGS TO SOME OTHER PARTY. THE LD. A.R. ALSO SUBMITS THAT THE AS SESSEE WOULD BE IN A POSITION TO CLARIFY THIS FACTUAL ASPECT BEFORE THE A.O. IF AN OPPORTUNITY IS GIVEN. IN THE INTEREST OF NATURAL J USTICE, WE FIND MERIT IN THE PRAYER PUT FORTH BY LD. A.R., SINCE THE ADDI TION HAS BEEN CONFIRMED BY LD. CIT(A) ONLY FOR THE REASON THAT TH ERE IS DIFFERENCE ITA NO.198/BANG/2019 M/S. SEVENSEAS GLOBAL EXPRESS LOGISTICS PVT. LTD., BANGALORE PAGE 3 OF 3 IN THE PAN NUMBER. ACCORDINGLY, WE ARE OF THE VIE W THAT THE ASSESSEE MAY BE PROVIDED WITH ONE MORE OPPORTUNITY TO CLARIFY THIS CONFUSION. ACCORDINGLY, WE SET ASIDE THE ORDER PA SSED BY THE LD. CIT(A) ON THE ISSUE OF ADDITION OF RS.9.00 LAKHS AN D RESTORE THE SAME TO THE FILE OF THE A.O. FOR EXAMINING IT AFRES H. THE ASSESSEE MAY FURNISH ALL THE DOCUMENTS THAT MAY BE CALLED FO R BY THE AO IN THIS REGARD. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE, 2021. SD/- (N.V. VASUDEVAN) VICE PRESIDENT SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 14 TH JUNE, 2021. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.