ITO, New Delhi V. CNS Infotech India Pvt. Ltd., New Delhi

ITA 2044/DEL/2013

• Counselvise Citation: 204420114 RSA 2013
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 11-03-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 08-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS NIDHI SRIVASTAVA
• Assessee Lawyers: SANJEEV GUPTA; SURESH ANANTARAMAN
• Keywords: Additional evidence
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY, AM AND SHRI RAJPAL YADAV, JM ITA NO: 2044/DEL/2013 AY : - 2007-08 ITO, WARD 3(2) VS. CNS INFOTECH INDIA PVT.LTD. NEW DELHI 6 TH FLOOR, SAGAR PLAZA DIST. CENTRE LAXMI NAGAR, NEW DELHI PAN: AACCC 6272 F (APPELLANT) (RESP ONDENT) APPELLANT BY : MRS.NIDHI SRIVASTAVA, SR.D.R. RESPONDENT BY: SHRI SURESH ANANTARAMAN, CA AND SHRI SANJEEV GUPTA, C.A. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AG AINST THE ORDER OF THE LD.CIT(APPEALS)-V, NEW DELHI DT. 22.01.2013 PERTAI NING TO THE ASSESSMENT YEAR 2007-08 ON THE FOLLOWING GROUNDS. 1. WHETHER THE LD.CIT(APPEALS) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION OF RS.9,77,000/- U/S 68 OF THE ACT IGNORIN G THE FACT THAT: A) THE ASSESSEE HAS RECEIVED FUND FROM THE LENDER SH.P IYUSH KANTILAL KADIWAR, AND ASSESSEE HAS FAILED TO FULFILL THE SPE CIFIC REQUIREMENT OF SECTION 68 OF THE ACT; B) THE ASSESSEE HAS COMPLETELY FAILED IN DISCHARGING I TS ONUS OF GENUINENESS AND CREDIT WORTHINESS OF THE PERSON FROM WHERE THE CREDIT HAS BEEN APPEARING IN THE BOOKS OF ASSESSEE. 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUNDS OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. ITA NO. 2044/DEL/2013 CNS INFOTECH INDIA PVT.LTD. ASSESSMENT YEAR 2007-08 PAGE 2 OF 4 2. WE HAVE HEARD MRS.NIDHI SRIVASTAVA, LD.SR.D.R. O N BEHALF OF THE REVENUE AND SHRI SURESH ANANTARAMAN, THE LD.COUNSEL FOR THE ASSESSEE. 3. ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRC UMSTANCES OF THE CASE, ON PERUSAL OF PAPERS ON RECORD AND THE ORDERS OF THE L OWER AUTHORITIES, WE HOLD AS FOLLOWS. 4. AN AMOUNT OF RS.9,77,000/- CONSISTS OF RS.3,77 ,000/- BEING UNSECURED LOAN FROM MR.PIYUSH KANTHILAL KADIWAR AND AN AMOUNT OF RS.6 LAKHS BEING SHARE APPLICATION MONEY ALSO FROM MR.PIYUSH KANTHILAL KAD IWAR. WE FIRST TAKE UP THE ISSUE OF UNSECURED LOAN OF RS.3,77,.000/- WHICH WAS ADDED U/S 68 OF THE ACT BY THE ASSESSING OFFICER, BUT WAS DELETED BY THE LD.CI T(APPEALS). THE AMOUNT RECEIVED FROM MR.PIYUSH KANTHILAL KADIWAR, WAS REPA ID TO HIM VIDE CHEQUE NO.578784 DT. 10.8.2007. THE ASSESSEE HAS SUBMITTE D THAT MR.PIYUSH KANTHILAL KADIWAR WAS A PERSON RESIDING IN GOA AND AS THE TIM E GIVEN FOR PRODUCING EVIDENCES BY THE ASSESSING OFFICER WAS INSUFFICIENT , APPLICATION FOR ADMISSION OF ADDITIONAL EVIDENCE UNDER RULE 46A WAS FILED BEFO RE THE LD.CIT(APPEALS), WHO ADMITTED THE SAME. THE ADDITIONAL EVIDENCES WERE ( I) CONFIRMATION LETTER THAT THE INCOME WAS BELOW TAXABLE LIMIT DURING THE ASSES SMENT YEAR 2007-08 AND HENCE NO RETURN FILED; (II) CERTIFICATE FROM THE BR ANCH MANAGER OF SBI REGARDING SOURCE OF ENTRY OF RS.5,50,000/- IN THE ACCOUNT OF MR.PIYUSH KANTHILAL KADIWAR(III) ITA NO. 2044/DEL/2013 CNS INFOTECH INDIA PVT.LTD. ASSESSMENT YEAR 2007-08 PAGE 3 OF 4 COPY OF ACKNOWLEDGE RETURN ALONG WITH COMPUTATION O F INCOME FOR THE ASSESSMENT YEAR 2008-09. 5. BEFORE THE ASSESSING OFFICER MR.PIYUSH KANTHILAL KADIWAR HAS CONFIRMED THE FACT THAT AN AMOUNT HAS BEEN ADVANCED FOR BOOKI NG A PLOT AT RAJIV GANDHI IT-HABITAT, DONEE-PAULA ON BEHALF OF THE ASSESSEE F ROM HIM AND THIS WAS REPAID BY THE ASSESSEE COMPANY. IN VIEW OF THE ABOVE EVID ENCES, WE UPHOLD THE FINDING OF THE FIRST APPELLATE AUTHORITY DELETING T HE ADDITION OF RS.3,77,000/- AS CASH CREDIT U/S 68 OF THE ACT. 6. ON THE ADDITION OF RS.6 LAKHS ON ACCOUNT OF UNEX PLAINED SHARE APPLICATION MONEY, THE FINDINGS OF THE LD.CIT(APPEALS) AT PAGE 5 IS NOT CONTROVERTED BY THE LD.D.R. THE IDENTITY, CAPACITY AND GENUINENESS OF THE TRANSACTION HAD BEEN DEMONSTRATED BY THE ASSESSEE. IN THE RESULT THIS G ROUND OF REVENUE IS ALSO DISMISSED. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST MAY,2014. SD/- SD/- - (RAJPAL YADAV) (J .SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: THE 21 ST MAY, 2014 *MANGA ITA NO. 2044/DEL/2013 CNS INFOTECH INDIA PVT.LTD. ASSESSMENT YEAR 2007-08 PAGE 4 OF 4 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR