M/S WINGS ECO HOMES (P) LTD, Mumbai V. DCIT-11(3)(2), Mumbai

ITA 2434/MUM/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9583 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 17-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 68; 143(3); 142(1); 133(6); 250; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No.2434/Mum/2019 (Assessment Year 2011-12) M/s Wings Eco Homes (P) Ltd. 110/114, Building No.4 Mittal Industrial Estate Marol Naka, Andheri (East) Mumabi-400059 Vs. Dy. CIT Circle-11(3)(2), M.K.Road, Mumbai-400020. PAN/GIR No. : AAACW4605N Appellant .. Respondent Appellant by : Shri Dhaval Shah.AR Respondent by : Shri Hemant Kumar Chimanlal Leava.CIT-DR Date of Hearing 05.07.2022 Date of Pronouncement 07.07.2022 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-18, Mumbai passed u/s 143(3) and 250 of 2. ITA.No.2434/Mum/2019- M/s Wings Eco Homes (P) Ltd.v.DCIT the Income Tax Act, 1961. The assessee has raised the following grounds of appeal: “1. On the facts and circumstances of the case and in law the Ld. CIT(A) erred in upholding the addition made by the AO u/s 68 of Rs.29,00,000/- in respect of Unsecured Loans of 7 parties on the grounds that the parties have not responded to the notices or that the notices have returned un served. 2. On the facts and circumstances of the case and in law the Ld. CIT(A) erred in upholding the addition made by the AO of Rs.2,78,250/- in respect of interest paid on unsecured loans of the said 7 parties. 3. The appellant reserves its right to add, amend alter or delete any of the grounds of appeal.” 2. The brief facts of the case are that, the assessee company is engaged in the business of manufacturing of garments and trading. The assessee has filed the return of income electronically for Asst.Year 2011-12 on 31.10.2011 disclosing a total income of Rs.69,21,280/- and the return of income was processed u/s143(1) of the Act. Subsequently, the case was selected for scrutiny under CASS and 3. ITA.No.2434/Mum/2019- M/s Wings Eco Homes (P) Ltd.v.DCIT notice u/s 143(2) and 142(1) of the Act were issued. In compliance of the notice, the AR of the assessee appeared from time to time and submitted the details. The Assessing Officer (A.O.) on perusal of the financial statements found that the assessee has obtained the share capital, share premium and unsecured loan in the current year and the details were called with supporting documents. The assessee was required to produce details, confirmations, PAN, and the reasons for increase in the share capital, share premium and unsecured loans and the direct and indirect expenses connected. The assessee has filed the submissions on 14.03.2014 dealt at para3.2 of the order. The Assessing Officer has discussed on the various aspects of evidences on the share capital and unsecured loans and relied on the judicial decisions. Finally the Assessing Officer has made addition as unexplained credits U/sec68 of the Act towards share capital of Rs28,00,000/-Sharepremium of Rs.6,72,00,000/,unsecuredloanofRs.3,12,35,608/.ad ditions in respect of share issue expenses of Rs.15.000/-,disallowance U/sec40(a)(ia) of the Act Rs.8,75,000/- and disallowance of depreciation of Rs.1,37,546/- and assessed the total income of 4. ITA.No.2434/Mum/2019- M/s Wings Eco Homes (P) Ltd.v.DCIT Rs.11,30,04,121/- and passed the order u/sec143(3) of the Act dated 25-03-2014. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A). whereas the CIT(A) has considered the grounds of appeal, findings of the assessing officer and the submissions of the assessee along with the documents in support of the claims. The CIT(A) has called for comments of the Assessing Officer. The Asseessing officer in the remand proceedings has called for various details, clarifications and issued summons u/sec131 and notice u/sec 133(6) of the Act on the investors and loan creditors and statements were recorded. The Asseessing officer has forwarded the remand report dated 24-09-2018. The CIT(A) considered the comments of the A.O. in the remand report and the assessee objections and is of the opinion that, since the assessee could not produce the parties nor the response was received and the notices could not be served has sustained the addition of unsecured loans in respect of 7 parties aggregating to Rs.29,00,000/- and granted relief in the other grounds of appeal and partly allowed the appeal. 5. ITA.No.2434/Mum/2019- M/s Wings Eco Homes (P) Ltd.v.DCIT Aggrieved by the CIT(A) order, the assesee has filed the appeal with the Honble Tribunal. 4. At the time of hearing, the Ld.AR of the assessee submitted that the CIT(A) has erred in sustaining addition of Unsecured loan creditors of Rs29,00,000/- overlooking the facts that the assessee has submitted the information of the seven parties in the remand proceedings on the identity, genuineness, and credit worthiness of the parties and the assessee could not produce the parties for confirmation due to non availability of persons at the address. The assessee has a good case on merits and is filing application for the admission of additional evidence and prayed to consider the additional evidence and allow the assesse appeal. Contra, the Ld. DR supported the order of the CIT(A) and submitted that the assessee has not complied with the directions of the AO & CIT(A) and the additional evidence should be rejected. 5. We heard the rival submissions and perused the material on record. The sole crux of the disputed 6. ITA.No.2434/Mum/2019- M/s Wings Eco Homes (P) Ltd.v.DCIT issue as envisaged by the Ld. AR that the assessee for various reasons could not submit the information before the AO in the remand proceedings and in the appellate proceedings before the CIT(A) with the details of unsecured loan creditors. The assessee has filed an application for admission of additional evidence on the identity, geninuneness and credit worthiness of the parties by way of ledger account copies, Annual report and Bank statements before the Honble Tribunal. The Ld. AR prayed that this additional evidence play a vital role in the decision making of the case and prayed for an opportunity to substantiate before the lower authorities. We considering the facts, circumstances, provisions of law and to meet the ends of justice shall provide one more opportunity to the assessee to substantiate with the evidences. Accordingly, we admit the additional evidence and restore the entire disputed issues to the file of the A.O. to verify and examine the material information and decide on merits. Further the interest on unsecured loan pertaining to above parties is consequential, and this disputed issue is also restored to the file of the Assessing Officer. The assessee should be provided the adequate opportunity of hearing and shall cooperate 7. ITA.No.2434/Mum/2019- M/s Wings Eco Homes (P) Ltd.v.DCIT in submitting the information. And the grounds of appeal of the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 07.07.2022 Sd/- Sd/- ( PRASHANT MAHARISHI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 07.07.2022 PK, Sps /Copy of the Order forwarded to : 1. / The Appellant 2. / The Respondent. 3. आ आ / The CIT(A) 4. आ आ ( ) / Concerned CIT 5. ! !" , आ $ %, हमद द / DR, ITAT, Mumbai 6. () * + / Guard file. ान ु सार/ BY ORDER, ! //True Copy// 1. (Asst. Registrar) ITAT, Mumbai