DCIT, New Delhi V. M/s. Routes Car Rentals (I) Pvt. Ltd., New Delhi

ITA 2447/DEL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3029 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 13-07-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 21-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ATIQ AHMAD SENIOR
• Keywords: Additional evidence; Corroborative evidences
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.2447/DEL./2014 (ASSESSMENT YEAR : 2008-09) DCIT, CIRCLE 15 (1), VS. M/S. ROUTES CAR RENTALS (I )PVT. LTD., NEW DELHI. 508, JYOTI SHIKAR, DISTRICT CENTRE, JANAKPURI, NEW DELHI 110 058. (PAN : AACCR6877K) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI ATIQ AHMAD, SENIOR DR DATE OF HEARING : 21.03.2018 DATE OF ORDER : 23.03.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : APPELLANT, DEPUTY COMMISSIONER OF INCOME-TAX, CIRC LE 15(1), NEW DELHI (HEREINAFTER REFERRED TO AS THE R EVENUE), BY FILING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE I MPUGNED ORDER DATED 29.01.2014 PASSED BY THE COMMISSIONER OF INCO ME-TAX (APPEALS)-XVIII, NEW DELHI QUA THE ASSESSMENT YEAR 2008-09 ON THE GROUNDS INTER ALIA THAT :- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) ERRED IN DELETING THE ADDITION OF ITA NO.2447/DEL./2014 2 RS.4,38,86,460/ - MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF SHARE APPLICATION MONEY IGNORING TH E FACT THAT THE ASSESSEE HAS FAILED TO PRODUCED ENOUG H SUPPORTING EVIDENCE TO SUBSTANTIATE THE GENUINENESS OF THE CREDITORS. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD CIT(A) HAS ERRED IN ADMITTING FRESH EVIDENCE SUBMITTED BY THE ASSESSEE FAILING TO APPRECIATING T HE REMAND REPORT OF THE AO WHEREIN IT WAS MENTIONED TH AT REPEATED OPPORTUNITIES WERE PROVIDED TO BE ASSESSEE TO SUBMIT EVIDENCE IN SUPPORT OF THE ISSUES, SUBJECT M ATTER OF THE ADDITIONS. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : ASSESSEE COMPANY IS INTO THE BUSINESS OF CAR RENTAL SERVICES. ASSESSING OFFICER NOTICED THA T THE ASSESSEE COMPANY HAS RECEIVED SHARE APPLICATION MONEY AMOUNT ING TO RS.4,38,86,460/-. ON FAILURE OF THE ASSESSEE COMPA NY TO FILE CONFIRMATION AND PROVE THE CREDITWORTHINESS OF THE PERSONS EXTENDING SHARE APPLICATION MONEY, ADDITION OF RS.4 ,38,86,460/- HAS BEEN MADE UNDER SECTION 68 OF THE INCOME-TAX AC T, 1961 (FOR SHORT THE ACT). 3. ASSESSEE CARRIED THE MATTER BY WAY OF FILING AN APPEAL BEFORE THE LD. CIT (A) WHO HAS CONFIRMED THE ADDITION OF R S.44,12,500/- OUT OF THE TOTAL ADDITION OF RS.4,38,86,460/- BY PA RTLY ALLOWING THE APPEAL. FEELING AGGRIEVED, THE REVENUE HAS COME UP BEFORE THE TRIBUNAL BY FILING THE PRESENT APPEAL. ITA NO.2447/DEL./2014 3 4. ASSESSEE HAS NOT PREFERRED TO PUT IN APPEARANCE ON 02.01.2018 AND 21.03.2018 AND CONSEQUENTLY, WE PROC EEDED TO DECIDE THE PRESENT APPEAL WITH THE ASSISTANCE OF TH E LD. DR AS WELL AS ON THE BASIS OF DOCUMENTS AVAILABLE ON THE FILE. 5. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E FOR THE REVENUE TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 6. UNDISPUTEDLY, DURING THE APPELLATE PROCEEDINGS, THE LD. CIT (A) CALLED REMAND REPORT FROM THE AO WHICH WAS SUBM ITTED VIDE LETTER DATED 25.05.2012. PERUSAL OF THE REMAND REP ORT, REPRODUCED BY LD. CIT (A) AT PAGES 8, 9 & 10 OF THE IMPUGNED O RDER, GOES TO PROVE THAT IN CASE OF SANJAY MALHOTRA WHO HAS MADE INVESTMENT OF RS.9,00,000/- IN THE COMPANY FILED THE CONFIRMATION LETTER. HOWEVER, AS PER THE TRANSACTION ENQUIRY OF ACCOUNT NO.75444104820550 SHOWS THAT THE CHEQUE FURNISHED F OR CONFIRMATION IS NOT LEGIBLE. MOREOVER, FORM THE BA NK STATEMENT OF SANJAY MALHOTRA THAT IT HAS COME ON RECORD FROM 12. 07.2007 TO 30.11.2010, THERE IS ONLY ONE TRANSACTION REFLECTED OF THE SUBSTANTIAL AMOUNT OF RS.9,00,000/- AND NO OTHER TR ANSACTION IS THERE. ITA NO.2447/DEL./2014 4 7. IT IS ALSO MENTIONED IN THE REMAND REPORT THAT I N CASE OF TRANSACTION OF CANADIAN $ 50,000 (RS.20,12,500/-) Q UA WHICH ASSESSEE COMPANY FILED CONFIRMATION BUT FAILED TO P ROVIDE DD NO.915186 NOR THE ASSESSEE COMPANY HAS FILED FIRC I N THIS REGARD. SIMILARLY, IN CASE OF AMOUNT OF RS.15,00,000/- INVE STED BY BAWINDER SINGH IN THE ASSESSEE COMPANY IS CONCERNED , ONLY PHOTOCOPY OF THE CONFIRMATION HAS BEEN FILED WHEREI N ADDRESS MENTIONED THEREIN IS DIFFERENT FROM ACTUAL ADDRESS OF BAWINDER SINGH AND MOREOVER NO SUFFICIENT BALANCE WAS THERE IN THE ACCOUNT AS PER BANK STATEMENT BROUGHT ON RECORD. 8. SO FAR AS DISALLOWANCE OF AMOUNT OF RS.91,76,960 /- ON ACCOUNT OF SHARE TRANSFERRED FROM ERSTWHILE GROUP O F SHAREHOLDERS IS CONCERNED, AO REPORTED THAT NO EVIDENCE OF ANY K IND HAS BEEN SUBMITTED BY THE ASSESSEE COMPANY DURING THE REMAND PROCEEDINGS. 9. PERUSAL OF PARA 8.7 OF THE IMPUGNED ORDER PASSED BY LD. CIT (A) GOES TO PROVE THAT THE LD. CIT (A) WHILE DISCUS SING THE OBJECTIONS RAISED BY AO IN THE REMAND REPORT PROCEE DED TO DELETE THE ADDITION BY FURTHER ENTERTAINING THE ADDITIONAL EVIDENCE TO WHICH THE AO HAS NOT BEEN GIVEN ANY OPPORTUNITY TO EXAMINE. IN THESE CIRCUMSTANCES, WE ARE OF THE CONSIDERED VIEW THAT IMPUGNED ORDER PASSED BY THE LD. CIT (A) IS NOT SUSTAINABLE IN THE EYES OF LAW AND AS SUCH IS LIABLE TO BE SET ASIDE. IN THE LIGH T OF THE FACTS AND ITA NO.2447/DEL./2014 5 CIRCUMSTANCES OF THIS CASE, WE DEEM IT NECESSARY TO REMAND THE CASE BACK TO THE AO TO DECIDE AFRESH ON THE BASIS O F ADDITIONAL EVIDENCE ENTERTAINED BY THE LD. CIT (A) AS WELL AS OBJECTIONS RAISED DURING REMAND PROCEEDINGS AFTER PROVIDING AN OPPORT UNITY OF BEING HEARD TO THE ASSESSEE. CONSEQUENTLY, THE APPEAL FI LED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 23 RD DAY OF MARCH, 2018. SD/- SD/- (R.K. PANDA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 23 RD DAY OF MARCH, 2018 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XVIII, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.