Muffadlal Developers Pvt Ltd., Ahmedabad V. ITO, Ward-2(1)(4), Ahmedabad

ITA 215/AHD/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9730 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 29-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 143(3); 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO.215/AHD/2018 (ASSESSMENT YEAR : 2014-15) MUFFADLAL DEVELOPERS PVT. LTD., 601, AMAN APARTMENTS, J. P. CHOWK, KHANPUR AHMEDABAD 380 001. VS. INCOME TAX OFFICER, SHRI JAGWINDER PAL SINGH, ITO WARD 2(1)(4), AHMEDABAD. [PAN NO. AAHCM 4932 B] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI NITIN PATHAK, A.R. RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. DATE OF HEARING 19.06.2019 DATE OF PRONOUNCEMENT 01.07.2019 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL FILED BY THE ASSESSEE IS DIRECT ED AGAINST THE ORDER DATED 01.12.2017 PASSED BY THE COMMISSIONER OF INCO ME TAX (APPEALS) 2, AHMADABAD ARISING OUT OF THE ORDER DATED 27.12.2016 PASSED BY THE INCOME TAX OFFICER, WARD 2(1)(4), AHMEDABAD UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED AS TO THE ACT ) FOR ASSESSMENT YEAR 2014- 15. 2. THE ASSESSEE COMPANY HAS FILED ITS RETURN OF INC OME ON 26.11.2014, WHICH WAS ULTIMATELY FINALIZED BY THE ASSESSING OFF ICER INTER ALIA BY MAKING ADDITION OF RS.1,81,87,650/- ON ACCOUNT OF UNSECURE D LOANS RECEIVED FROM THREE ITA NO.215/AHD/2018 MUFFADLAL DEVELOPERS PVT. LTD. VS. ITO ASSESSMENT YEAR 2014-15 - 2 - PARTIES, WHICH WAS FURTHER CONFIRMED IN APPEAL. HEN CE, THE INSTANT APPEAL BEFORE US. 3. THE BRIEF FACTS LEADING TO THIS CASE IS THIS THA T DURING THE ASSESSMENT PROCEEDING, IT WAS FOUND FROM THE DOCUMENTS THAT TH E ASSESSEE COMPANY HAD TAKEN UNSECURED LOAN AMOUNTING TO RS.1,25,00,000/- FROM ONE SHRI MURTAZABHAI. DOCUMENTS WHEREOF WAS ASKED FOR IN ORD ER TO VERIFY THE IDENTITY AND CREDITWORTHINESS OF THAT PERSON AND THE GENUINE NESS OF THE TRANSACTION. CERTAIN DETAILS, HOWEVER, WERE NOT FURNISHED BY THE ASSESSEE. SINCE NOTHING WAS FORTHCOMING FROM THE ASSESSEE TO THE ADDRESS RE FLECTED IN THE PAN NUMBER OF THE SAID MURTAZABHAI NOTICE WAS SENT AND ULTIMAT ELY IN THE ABSENCE OF ANY RESPONSE AND/OR DETAILS SUBMITTED BY THE CONCERN PA RTY, ADDITION U/S 68 WAS MADE TREATING THE SAME AS UNEXPLAINED CASH CREDIT. SIMILARLY UNSECURED LOANS TO THE TUNE OF RS.46,87,650/- AND RS.10,00,000/- WA S FOUND TO BE RECEIVED BY THE ASSESSEE FROM ONE SHRI MOHASIN BHAI AND SHRI HU SSAIN DUGURPURWALA RESPECTIVELY; DETAILS WHEREOF WERE ALSO CALLED FOR FROM THE ASSESSEE INCLUDING THE BANK STATEMENT, COPY OF ITR ALONG WITH OTHER DO CUMENTS IN ORDER TO VERIFY THE IDENTITY AND CREDITWORTHINESS OF THE PERSONS IN ORDER TO ASCERTAIN THE GENUINENESS OF THE TRANSACTION. SOME OF THE DOCUMEN TS SINCE NOT FURNISHED BY THE ASSESSEE, THE UNSECURED LOANS RECEIVED FROM BOT H SHRI MOHASINBHAI AND SHRI HUSSAIN DUGURPURWALA HAVE BEEN TREATED AS UNEX PLAINED CASH CREDITS AND WERE ADDED TO THE TOTAL INCOME OF THE ASSESSEE U/S 68 OF THE ACT. IN APPEAL, ALL THE ADDITIONS WERE FOUND TO BE CORRECT BY THE FIRST APPELLATE AUTHORITY AND THE ADDITIONS WERE CONFIRMED. HENCE, THE INSTANT APPEAL BEFORE US. 4. IT APPEARS FROM THE RECORDS THAT DURING THE COUR SE OF ASSESSMENT PROCEEDING, THE ASSESSEE SUBMITTED THE CONFIRMATION AND ACKNOWLEDGMENT OF THE INCOME TAX RETURN IN RESPECT OF MURTAZABHAI. SU CH DOCUMENTS, HOWEVER, ITA NO.215/AHD/2018 MUFFADLAL DEVELOPERS PVT. LTD. VS. ITO ASSESSMENT YEAR 2014-15 - 3 - WERE NOT SUBMITTED IN RESPECT OF THE OTHER TWO PERS ONS. NOTICE WAS ALSO ISSUED TO THE PAYER U/S 133(6) OF THE ACT TO THE ADDRESS A VAILABLE IN THE PAN CARD BUT THE SAME REMAINED UNCOMPLIED. THE CONFIRMATION FROM MURTAZABHAI AND COPY OF ACKNOWLEDGMENT OF HIS RETURN WERE ALSO PLACED BE FORE THE APPELLATE AUTHORITY ALONG WITH THE OTHER DOCUMENTS. IN THE SA ME MANNER, IN RESPECT OF OTHER TWO PERSONS MATTER WERE PROCEEDED WITH AND UL TIMATELY ADDITION MADE. 5. AT THE TIME OF HEARING OF THE INSTANT APPEAL THE LEARNED ADVOCATE APPEARING FOR THE ASSESSEE SUBMITTED BEFORE US THAT ALL THE DOCUMENTS INCLUDING THE PAN, LEDGER ACCOUNT, BANK STATEMENT, RETURN OF INCOME WERE SUBMITTED BEFORE THE AUTHORITIES BELOW WHICH WERE NOT TAKEN I NTO CONSIDERATION BY AUTHORITIES BELOW AND HENCE THE MATTER HAS BEEN REQ UESTED TO BE REMITTED TO THE FILE OF THE LEARNED CIT(A) FOR VERIFICATION OF THE IDENTITY AND CREDITWORTHINESS OF THE PERSONS AND GENUINENESS OF THOSE TRANSACTION S. ON THE OTHER HAND, LEARNED DR HAS NOT RAISED ANY OBJECTION. 6. WE HAVE HEARD THE RESPECTIVE PARTIES, AND PERUSE D THE RELEVANT MATERIALS AVAILABLE ON RECORD. IT APPEARS THAT THE PAPER BOOK SUBMITTED BY THE ASSESSEE BEFORE US CONTAINS PAN, LEDGER ACCOUNT, BANK STATEM ENT, PASSPORT, CERTAIN RECEIPTS SHOWING REPAYMENTS OF THE PARTIES BY AND L ARGE. IT ALSO APPEARS THAT THOUGH THOSE DOCUMENTS WERE PLACED BEFORE THE AUTHO RITIES BELOW WERE NOT TAKEN INTO CONSIDERATION IN ITS PROPER PROSPECTIVE EVEN BY THE FIRST APPELLATE AUTHORITY WHO OUGHT TO HAVE ENQUIRED INTO THE MATTE R EITHER BY HIMSELF OR THROUGH THE LEARNED AO. HENCE, WE FIND IT FIT AND P ROPER IN ORDER TO PREVENT THE MISCARRIAGE OF JUSTICE TO SEND THE ISSUE TO THE FILE OF THE LEARNED CIT(A) TO DECIDE THE SAME AFRESH UPON TAKING INTO CONSIDERATI ON ALL THE MATERIALS AVAILABLE BEFORE HIM AND UPON GIVING A REASONABLE O PPORTUNITY OF BEING HEARD TO THE ASSESSEE AND ALSO UPON TAKING INTO CONSIDERA TION ANY EVIDENCE WHICH THE ITA NO.215/AHD/2018 MUFFADLAL DEVELOPERS PVT. LTD. VS. ITO ASSESSMENT YEAR 2014-15 - 4 - ASSESSEE MAY CHOOSE TO FILE AT THE TIME OF HEARING OF THE APPEAL. IN THAT VIEW OF THE MATTER, ASSESSEES APPEAL IS ALLOWED FOR STATIS TICAL PURPOSE. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. THIS ORDER PRONOUNCED IN OPEN COURT ON 01/07/2019 SD/- SD /- ( AMARJIT SINGH ) ( MS. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 01/07/2019 PRITI YADAV, SR.PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A)-2, AHMEDABAD. 5. , , / DR, ITAT, AHMEDABAD 6. !' #$ / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT.REGISTRAR) , !' / ITAT, AHMEDABAD 1. DATE OF DICTATION 24.06.2019 (DICTATION PAGES 5) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 26.06.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 26.06.2019 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER