The ITO, Ward-2(4), Jr., PORBANDAR V. M/s. Pooja Shipping Co., PORBANDAR

ITA 211/RJT/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9043 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-05-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 26-03-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: USHA N SHROTE
• Keywords: Opportunity of being heard
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AH MEDABAD] (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 211/RJT/2014 (ASSESSMENT YEAR: 2005-06) THE INCOME TAX OFFICER, WARD 2(4), PORBANDAR V/S M/S. POOJA SHIPPING CO., PORBANDAR.3, WADI PLOT, PORBANDAR (APPELLANT) (RESPONDENT) PAN: AAJFP4848C APPELLANT BY : MS. USHA N. SHROTE, SR. D. R. RESPONDENT BY : SHRI CHETAN AGARWAL, A.R. ( )/ ORDER DATE OF HEARING : 31 -05-201 7 DATE OF PRONOUNCEMENT : 05 -06-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF LD. CIT(A), JAMNAGAR DATED 24.01.2013 PERTAINING TO A.Y. 2005-0 6. ITA NO. 211/ RJT/2014 . A.Y. 2005-06 2 2. THE SOLE GRIEVANCE OF THE REVENUE IS THAT THE LD. C IT(A) ERRED IN DELETING THE ADDITION OF RS. 50.35 LACS MADE BY THE A.O. ON ACCO UNT OF UNDISCLOSED INVESTMENT U/S. 69 OF THE ACT. 3. THE RETURN FOR THE YEAR UNDER CONSIDERATION WAS SEL ECTED FOR SCRUTINY ASSESSMENT AND DURING THE COURSE OF THE SCRUTINY AS SESSMENT PROCEEDINGS, THE A.O. NOTICED THAT CENTRAL BANK OF INDIA, PORBAN DAR HAS SANCTIONED A TERM LOAN OF RS. 99 LACS TO THE ASSESSEE FOR WHICH THE ASSESSEE HAS PAID MARGIN MONEY OF RS. 50.35 LAS. THE ASSESSEE WAS ASK ED TO EXPLAIN THE SOURCE OF MARGIN MONEY. AFTER GIVING SEVERAL OPPOR TUNITIES, THE A.O. DID NOT RECEIVE ANY PLAUSIBLE REPLY FROM THE ASSESSEE A ND MADE THE ADDITION OF RS. 50.35 LACS U/S. 69 OF THE ACT. 4. BEFORE THE FIRST APPELLATE AUTHORITY, THE ASSESSEE FURNISHED A CERTIFICATE FROM CENTRAL BANK OF INDIA, PORBANDAR WHO CERTIFIED THAT THE MARGIN MONEY PAID BY THE ASSESSEE WAS FROM A TERM LOAN PREVIOUSL Y SANCTIONED BY THE BANK. THE FIRST APPELLATE AUTHORITY WAS CONVINCED W ITH THE CERTIFICATE OF THE CENTRAL BANK OF INDIA, PORBANDAR AND DIRECTED T HE A.O. TO DELETE THE ADDITION. 5. BEFORE US, THE LD. D.R. STRONGLY CONTENDED THAT NO SUCH EVIDENCE WAS FURNISHED BEFORE THE A.O. AND EVEN THE FIRST APPELL ATE AUTHORITY DID NOT CALL FOR ANY REMAND REPORT FROM THE A.O. AND, THEREFORE, THE VERIFICATION OF SUCH CERTIFICATE COULD NOT BE DONE. ITA NO. 211/ RJT/2014 . A.Y. 2005-06 3 6. WE FIND FORCE IN THE CONTENTION OF THE LD. D.R. THE RE IS NO DISPUTE THAT THE FIRST APPELLATE AUTHORITY DID NOT TRANSMIT THE CERT IFICATE FOR VERIFICATION BY THE A.O NOR HE CALLED FOR ANY REMAND REPORT. THEREF ORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THIS ISSUE TO THE FILES OF TH E A.O. THE ASSESSEE IS DIRECTED TO SUBMIT THE CERTIFICATE FROM THE CENTRAL BANK OF INDIA, PORBANDAR BEFORE THE A.O. AND THE A.O. IS DIRECTED TO VERIFY THE CONTENTS OF THE CERTIFICATE AND DECIDE THE ISSUE AFRESH AFTER GIVIN G A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 05- 06 - 2017 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED: 05/06/2017 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJKO T