M/s. Allwin Cargo Services, CHENNAI V. ACIT, CHENNAI

ITA 2599/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4478 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 22-02-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 06-09-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: T VASUDEVAN
• Section: 143(3); 133(6); 12; 11

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , J UDICIAL MEMBER ./ I.T.A.NO. 2599 /MDS/2016 / ASSESSMENT YEAR :20 11 - 12 M / S. ALLWIN CARGO SERVICES, NO. 158, OLD NO. 184, 1 ST FLOOR, GOVINDAPPAN NAICKEN STREET, MANNADY, CHENNAI 600 001 [PAN: A A OFA9918K ] VS. THE ASSISTANT COMMISSIONE R OF INCOME TAX , BUSINESS CIRCLE VIII , CHENNAI 600 034 . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI T. VASUDEVAN , ADVOCATE / RESPONDENT BY : SHRI SHIVA SRINIVAS , J CIT / DATE OF HEARING : 22 . 0 2 .201 7 / DATE OF P RONOUNCEMENT : 16 . 0 5 .201 7 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOM E TAX (APPEALS) 1 3 , CHENNAI DATED 0 6 . 0 5 .201 6 RELEVANT TO THE ASSESSMENT YEAR 20 11 - 12 , WHEREIN , VARIOUS GROUNDS IN ITS APPEAL HAVE BEEN RAISED . I.T.A. NO. 2 599 /M/16 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CLEARING AND SHIPPING OF CARG O AND FILED ITS RETURN OF INCOME ON 0 1 . 1 0 .20 11 ADMITTING INCOME OF . 22,98,815 / - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND AFTER DETAILED SCRUTINY, THE ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] DATED 27.03.2014 WAS COMPLETED BY ASSESSING TOTAL INCOME OF THE ASSESSEE AT .1, 53,83,820/ - AFTER MAKING VARIOUS ADDITIONS . 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND CONSIDERING THE FACTS OF THE CASE, THE LD. CIT(A) HAS DISMISSED THE APPEAL FILED BY THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL . IN ITS APPEAL, THE ASSESSEE HAS RAISED THREE GROUNDS VIZ., CONFIRMATION OF ADDITION OF .8,50,000/ - WITH REGARD TO ALLEGED DEPOSIT IN THE BANK, (II) CONFIRMATION OF ADDITION IN RESPECT OF CONFIRMATION LETTER NOT FILED FROM THE SUNDRY CREDITORS AND (III) CONFIRMATION OF ADDITION OF .9,50,000/ - TOWARDS LOAN AMOUNTS RECEIVED FROM THREE PARTIES . 5. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AS PER AIR INFORMATION, THE ASSESSING OFFICER HAS NOTICED THAT THE ASSESSEE WAS DEPOSITED CASH IN IDBI BANK ON 25.08.2010 OF .3.5 LAKHS AS WELL AS ON I.T.A. NO. 2 599 /M/16 3 15.12.2010 OF .5 LAKHS. BY FILING DETAILS OF IDBI BANK ACCOUNT, THE CASE OF THE ASSESSEE IS THAT THE SAID BANK ACCOUNT WAS OPENED ONLY ON 16.12.2011 AND CLAIMED THAT THERE WAS NO ACCOUNT PRIOR TO THIS DATE WITH IDBI BANK. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT WHEN THE ASSESSEE HAS PROD UCED BANK DETAILS BEFORE THE ASSESSING OFFICER AND WITHOUT VERIFYING THE DETAILS WITH THE IDBI BANK, THE ASSESSING OFFICER SIMPLY MADE ADDITION AS UNEXPLAINED CASH DEPOSITS AND PRAYED THAT THE ASSESSING OFFICER MAY BE DIRECTED TO VERIFY THE DETAILS WITH TH E BANK AND DECIDE THE ISSUE AFRESH. FOR ADDITIONS WITH REGARD TO SUNDRY CREDITORS AND LOAN CREDITORS, SINCE THE ASSESSEE WAS NOT HAVING THE DETAILS INSTANTLY, THE ASSESSEE WAS UNABLE TO APPEAR AND FILE THE SAME BEFORE THE AUTHORITIES BELOW AND PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE FOR FILING THE CONFIRMATION OF SUNDRY CREDITORS AND LOAN CREDITORS BEFORE THE ASSESSING OFFICER FOR DECIDING THE ISSUES AFRESH. 6. ON THE OTHER HAND, THE LD. DR STRONGLY OBJECTED TO THE SUBMISSIONS OF TH E LD. COUNSEL FOR THE ASSESSEE. BOTH THE AUTHORITIES BELOW HAVE GIVEN SUFFICIENT OPPORTUNITIES TO THE ASSESSEE AND THE ASSESSEE HAS NOT UTILIZED THE SAME. HE FAIRLY CONCEDED THAT THE ASSESSING OFFICER SHOULD HAVE CALLED FOR DETAILS WITH THE BANK UNDER SECT ION 133(6) OF THE ACT BEFORE DECIDING THE ISSUE. I.T.A. NO. 2 599 /M/16 4 7. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, IT WAS THE SUBMISSION OF THE ASSESSEE THAT PRIOR TO THE DATE OF 16. 12.2011, THE ASSESSEE HAS NOT MAINTAINED ANY BANK ACCOUNT WITH IDBI BANK, BUT THE ASSESSING OFFICER FOUND THROUGH AIR INFORMATION THAT THE ASSESSEE HAS MADE DEPOSITS ON TWO OCCASIONS TOTALLING TO .8.50 LAKHS. IT IS ALSO A FACT THAT WITHOUT OBTAINING DETAI LS OF BANK ACCOUNT FROM THE IDBI BANK UNDER SECTION 133(6) OF THE ACT, BASED ON THE AIR INFORMATION, THE ASSESSING OFFICER HAS PROCEEDED TO MADE ADDITION IS NOT SUSTAINABLE UNDER THE EYES OF LAW. THUS, WE SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO OBTAIN DETAILS UNDER SECTION 133(6) OF THE ACT FROM THE BANK AND AFTER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE, THE ISSUE SHALL BE DECIDED AFRESH IN ACCORDANCE WITH LAW BY M AKING DETAILED VERIFICATION. 8. WITH REGARD TO THE ADDITIONS TOWARDS NON - FILING OF CONFIRMATIONS FROM THE SUNDRY CREDITORS AND LOAN CREDITORS, SINCE THE LD. COUNSEL FOR THE ASSESSEE HAS PLEADED TO GIVE ONE MORE OPPORTUNITY, TO MEET THE ENDS OF JUSTICE, WE REMIT THE ISSUES BACK TO THE ASSESSING OFFICER TO DECIDE AFRESH AFTER VERIFICATION OF THE DETAILS AS MAY BE FILED BY THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FILE THE CONFIRMATIONS OF SUNDRY CREDITORS AND I.T.A. NO. 2 599 /M/16 5 LOAN CREDITORS BEFORE THE ASSESSING OFFICE R FOR VERIFICATION. THUS, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 9 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THE 16 TH MAY , 201 7 AT CHENNAI. SD/ - SD/ - ( CH ANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 16 . 0 5 .201 7 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.