Oswal Minerals Ltd., CHENNAI V. ACIT, CHENNAI

ITA 2317/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81186 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 27-08-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 31-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SASI KUMAR
• Assessee Lawyers: B RAMAKRISHNAN
• Keywords: Unexplained cash credit; Bad and doubtful debts
• Section: 234B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , !' #$ , % '&# '' BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ' ./ ITA NO. 2317/MDS/2013 % ( )( / ASSESSMENT YEAR : 2005-06 M/S OSWAL MINERALS LTD., 8/11, POLICE STATION ROAD, CHENNAI - 600 043. PAN : AACCM 6499 G V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE II(4), CHENNAI - 600 034. ($+/ APPELLANT) (-.$+/ RESPONDENT) $+ / ' / APPELLANT BY : SHRI B. RAMAKRISHNAN, FCA -.$+ / ' / RESPONDENT BY : SHRI A. SASI KUMAR, JCIT ' 0 / 12 / DATE OF HEARING : 27 TH AUGUST, 2014 34) / 12 / DATE OF PRONOUNCEMENT : 25 TH SEPTEMBER, 2014 / O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINS T THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-V, CHEN NAI, DATED 19.08.2013, RELEVANT TO THE ASSESSMENT YEAR 2005-06 . THE ASSESSEE HAS CHALLENGED THE FINDINGS OF THE CIT(APP EALS) ON FOLLOWING THREE COUNTS:- 2 I.T.A. NO. 2317/MDS/13 (I) CONFIRMING ADDITION OF ` 33,10,000/- AS UNEXPLAINED CASH CREDIT. (II) CONFIRMING ADDITION OF BAD DEBTS TO THE EXTENT OF ` 1,61,565/-. (III) LEVY OF INTEREST UNDER SECTION 234B OF THE INCOME-TAX ACT, 1961. 2. SHRI B. RAMAKRISHNAN, FCA, APPEARING ON BEHALF O F THE ASSESSEE, SUBMITTED THAT THE CIT(APPEALS) IN EX-PARTE ORDER WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND DOC UMENTS ON RECORD, HAS CONFIRMED THE ADDITION MADE BY THE ASSE SSING OFFICER. THE LD. A.R. CONTENDED THAT THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS BEFORE THE CIT(APPEALS). HOWEVER, THE SAME WERE NOT CONSIDERED WHILE PASSING THE IMPUGNED ORDER. THE L D. A.R. FURTHER SUBMITTED THAT AS REGARDS UNEXPLAINED CASH CREDIT, THE AMOUNT WAS RECEIVED TOWARDS ARREARS PERTAINING TO SHARE CAPITA L AND SHARE PREMIUM. SIMILAR ISSUE HAD COME UP DURING THE PREC EDING ASSESSMENT YEAR, AND THE SAME WAS ALLOWED BY THE CI T(APPEALS). ON THE ISSUE OF BAD DEBTS, THE LD. A.R. CONTENDED T HAT IT IS SQUARELY COVERED BY THE DECISION OF HON'BLE SUPREME COURT OF INDIA IN THE CASE OF TRF LTD. V. CIT (323 ITR 397). 3. SHRI A. SASI KUMAR, JCIT, REPRESENTING THE DEPAR TMENT, VEHEMENTLY OPPOSED THE CONTENTIONS OF THE LD. A.R. THE LD. D.R. SUBMITTED THAT THE ASSESSEE HAD FAILED TO FURNISH T HE DETAILS OF SUBSCRIBERS OF SHARES ALONG WITH THEIR ADDRESS, AMO UNT AND MODE OF 3 I.T.A. NO. 2317/MDS/13 RECEIPTS, ETC. THE ASSESSEE HAD RECEIVED ` 99,25,118/- TOWARDS CALLS IN ARREARS AND ` 72,78,419/- ON ACCOUNT OF SHARE PREMIUM. THE ASSESSEE HAD FURNISHED PARTIAL DETAILS. ON THE BAS IS OF THE INFORMATION FURNISHED BY THE ASSESSEE, RELIEF WAS G RANTED AND IN RESPECT OF AMOUNT TO THE TUNE OF ` 33,10,000/-, DETAILS WERE NOT FURNISHED. ACCORDINGLY, THE ADDITION WAS MADE. THE LD. D.R. VEHEMENTLY SUPPORTED THE IMPUGNED ORDER AND PRAYED FOR DISMISSING THE APPEAL OF ASSESSEE. 4. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BEL OW PERUSED. THE LD. A.R. OF THE ASSESSEE HAS CONTENDED THAT THE ASSESSEE CAN FURNISH THE DETAILS IN RESPECT OF AMOUNT OF ` 33,10,000/- WHICH HAS BEEN HELD TO BE UNEXPLAINED CASH CREDITS. THE SAID AMOUNT HAS BEEN ALLEGEDLY RECEIVED BY THE ASSESSEE TOWARDS SHA RE CALL MONEY AND SHARE PREMIUM. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE DEEM IT APPROPRIATE TO REMIT THE ISSUE BACK TO THE FILE OF THE A.O. THE ASSESSEE IS DIRECTED TO FURNISH THE DETAILS OF SHAREHOLDERS WHO HAVE DEPOSITED THE AMOUNT TOWARDS CALLS IN ARREARS, AND SHARE PREMIUM. THE ASSESSEE SHALL ALSO PRODUCE BOOKS OF ACCOUNTS SO AS TO ENABLE THE A.O. TO GRANT BENEFIT OF BAD DEBTS WRITTEN OFF. THE A.O. SHALL DECIDE BOTH THE ISSUES AFRESH AFTER CONS IDERING THE EVIDENCE FURNISHED BY THE ASSESSEE, IN ACCORDANCE W ITH LAW. 4 I.T.A. NO. 2317/MDS/13 5. IN RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THURSDAY, THE 25 TH OF SEPTEMBER, 2014 AT CHENNAI. SD/- SD/- ( ... ) ( !' #$ ) (DR. O.K. NARAYANAN) (VIKAS AWASTHY) /VICE-PRESIDENT % '&# /JUDICIAL MEMBER /CHENNAI, G& /DATED, THE 25 TH SEPTEMBER, 2014. KRI. &H / -%1I! J!)1 /COPY TO: 1. $+ /APPELLANT 2. -.$+ /RESPONDENT 3. 0 K1 () /CIT(A)-V, CHENNAI 4. 0 K1 /CIT-V, CHENNAI-34 5. !LM -%1% /DR 6. M( N /GF.