Rajgopal Processing Mills Pvt. Ltd., Ahmedabad V. Income Tax Officer, Ward 3(1)(3), Ahmedabad

ITA 2647/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4465 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 30-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: G C PIPARA
• Keywords: Unexplained cash credit; Set aside
• Section: 133(6); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER ./ITA NO. 2647/AHD/2017 ( / ASSESSMENT YEAR : 2012-13) RAJGOPAL PROCESSING MILLS PVT.LTD. JINDAL & JINDAL B-810, FAIRDEAL HOUSE NR.SWASTIK CHAR RASTA NAVRANGPURA, AHMEDABAD-9 / VS. THE INCOME TAX OFFICER WARD-3(1)(3), AHMEDABAD ./ ./ PAN/GIR NO. : AAACR 9120 P ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI G.C. PIPARA, AR / RESPONDENT BY : MS. SONIA KUMAR, SR.DR / DATE OF HEARING 05/05/2019 !'# / DATE OF PRONOUNCEMENT 31/05/2019 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)7, AHMEDABAD [CIT(A) IN SHORT] VIDE APPEAL NO.CIT(A)-7 /287/16-17 DATED 11/10/2017 ARISING IN THE ASSESSMENT ORDER PASSED U NDER S.143(3) R.W.S.147 OF THE INCOME TAX ACT, 1961(HEREINAFTER R EFERRED TO AS 'THE ACT') DATED 23/12/2016 RELEVANT TO ASSESSMENT YEA R (AY) 2012-13. THE ASSESSEE HAS RAISED THE REVISED GROUNDS OF APPE AL VIDE LETTER DATED 1 ST MAY 2019 WHICH ARE REPRODUCED AS UNDER: ITA NO.2647/AHD/2017 RAJGOPAL PROCESSING MILLS P.LTD. VS. ITO ASS T.YEAR 2012-13 - 2 - 1. THE LEARNED COMMISSIONER OF INCOME TAX APPEAL-7 AH MEDABAD ERRED IN LAW AS WELL IN FACTS OF THE CASE OF THE APPELLANT C OMPANY IN CONFIRMING THE ADDITION OF RS.24 LACS MADE BY THE INCOME TAX OFFIC ER IN THE RETURN INCOME OF THE APPELLANT COMPANY BY TREATING THE EQUITY SHA RE CAPITAL AS UNEXPLAINED CASH CREDIT U/S.68. 2. THE LEARNED COMMISSIONER OF INCOME TAX APPEAL-7 AH MEDABAD ERRED IN LAW AS WELL AS IN FACTS OF CASE OF THE APPELLANT CO MPANY IN NOT DECLARING THE REOPENING & REASSESSMENT U/S 147 OF THE COMPLET ED ASSESSMENT AS BAD IN LAW AND WITHOUT JURISDICTION. 3. ANY OTHER GROUNDS OF APPEAL AS MAY BE RAISED BEFORE OR AT THE TIME OF HEARING OF THIS APPEAL. 2. AT THE OUTSET, THE LEARNED AR FOR THE ASSES SEE BEFORE US SUBMITTED THAT THE FINDING GIVEN BY THE AO IS CONTRARY TO THE FACTS AVAILABLE ON RECORDS. THE DISCREPANCIES AS BROUGHT TO OUR NOTICE BY THE LEARNED COUNSEL FOR THE ASSESSEE STAND AS UNDER: (1) REGARDING THE CASH CREDIT OF 6 LAKHS FROM M/S PRINTEAGE OFFSET PVT. LTD. THE AO HAS INTER-ALIA ALLEGED THAT THERE WAS A CASH DEPOSIT OF 6.30 LAKHS IN THE BANK ACCOUNT OF THE COMPANY BEFOR E TRANSFERRING THE FUND TO THE ASSESSEE. BUT THE LEAR NED AR CLAIMED THAT NO SUCH CASH WAS DEPOSITED IN THE BANK ACCOUNT OF THE PARTY. THE LEARNED AR IN SUPPORT OF HIS CLAIM D REW OUR ATTENTION TO THE BANK STATEMENT OF THE PARTY PLACED ON PAGES 31 TO 37 OF THE PAPER BOOK. (2) REGARDING THE CASH CREDIT OF 6 LAKHS FROM M/S ADITYA FASHIONS PVT. LTD. THE AO HAS INTER-ALIA ALLEGED THAT THERE WAS A CASH DEPOSIT OF 25.51 LAKHS IN THE BANK ACCOUNT OF THE COMPANY BEFO RE ITA NO.2647/AHD/2017 RAJGOPAL PROCESSING MILLS P.LTD. VS. ITO ASS T.YEAR 2012-13 - 3 - TRANSFERRING THE FUND TO THE ASSESSEE. BUT THE LEAR NED AR CLAIMED THAT NO SUCH CASH WAS DEPOSITED IN THE BANK ACCOUNT OF THE PARTY. THE LEARNED AR IN SUPPORT OF HIS CLAIM D REW OUR ATTENTION TO THE BANK STATEMENT OF THE PARTY PLACED ON PAGES 68 TO 72 OF THE PAPER BOOK. (3) REGARDING THE CASH CREDIT OF 6 LAKHS FROM M/S RANGOLI COMMERCE PVT. LTD. THE AO HAS INTER-ALIA ALLEGED THAT - A. THERE WAS A CHEQUE DEPOSIT OF 25.00 LAKHS IN THE BANK ACCOUNT OF THE COMPANY BEFORE TRANSFERRING THE FUND TO THE ASSESSEE. B. THE TOTAL INCOME OF THE COMPANY IS OF RS. 96,910.00 DESPITE THE FACT THERE WERE VOLUMINOUS TRANSACTIONS IN THE ACCOUNT OF THE COMPANY. C. THERE IS A MISMATCH IN THE ADDRESSES AND THE SIGNAT URES OF THE COMPANY. (4) REGARDING THE CASH CREDIT OF 6 LAKHS FROM M/S ALASKA COMMERCE PVT. LTD. THE AO HAS INTER-ALIA ALLEGED THAT - A. THERE WAS A CHEQUE DEPOSIT OF 6.50 LAKHS IN THE BANK ACCOUNT OF THE COMPANY BEFORE TRANSFERRING THE FUND TO THE ASSESSEE. B. THE TOTAL INCOME OF THE COMPANY IS OF RS. 16,85,570 .00 DESPITE THE FACT THERE WERE VOLUMINOUS TRANSACTIONS IN THE BANK ACCOUNT OF THE COMPANY. ITA NO.2647/AHD/2017 RAJGOPAL PROCESSING MILLS P.LTD. VS. ITO ASS T.YEAR 2012-13 - 4 - C. THERE IS A MISMATCH IN THE ADDRESSES AND THE SIGNAT URES OF THE COMPANY. IN ADDITION TO THE ABOVE, THE AO ALSO OBSERVED THAT THE PARTIES ABOVE MENTION AT SERIAL NO. 1, 3 AND 4 HAVE REPLIED THE A O IN RESPONSE TO THE NOTICE ISSUED UNDER SECTION 133(6) OF THE ACT IN A SINGLE ENVELOPE. HOWEVER, THE LEARNED AR FOR THE ASSESSEE BEFORE US SUBMITTED THAT ALL THE PARTIES MADE A REPLY IN THE SEPARATE ENVELOPES. REG ARDING THIS, THE LEARNED AR DREW OUR ATTENTION ON PAGES 149 TO 154 O F THE PAPER BOOK. THE LEARNED AR FURTHER SUBMITTED THAT THE ASSESSEE IN THE REVISED GROUND OF APPEAL HAS ALSO CHALLENGED THE LEGALITY OF THE A SSESSMENT FRAMED UNDER SECTION 147 OF THE ACT ON THE GROUND THAT NO PROPER REASON HAS BEEN RECORDED. 3. IN VIEW OF THE ABOVE, THE LEARNED AR FOR THE ASSESSEE BEFORE US PRAYED TO RESTORE THE MATTER TO THE FILE OF THE AO FOR THE FRESH ADJUDICATION AS PER THE PROVISIONS OF LAW AS THERE ARE CERTAIN FACTUAL DIFFERENCES AS DISCUSSED ABOVE WHICH NEEDS TO BE VE RIFIED AFRESH. 4. ON THE OTHER HAND, THE LEARNED DR DID NOT RA ISE ANY OBJECTION ON THE PRAYER OF THE LEARNED AR FOR THE ASSESSEE BUT REQUE STED US TO RESTORE THE MATTER TO THE FILE OF THE LEARNED CIT (A). 5. HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. FROM THE PRECEDING DISCUSSION, IT IS CLEAR THAT THERE ARE CERTAIN FACTUAL DIFFERENCES BETWEEN THE FINDING OF THE AO ITA NO.2647/AHD/2017 RAJGOPAL PROCESSING MILLS P.LTD. VS. ITO ASS T.YEAR 2012-13 - 5 - VIS- A-VIS THE PIECES OF INFORMATION AVAILABLE ON R ECORD. THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY, WE ARE INCLINED TO RESTORE THIS ISSUE TO THE FILE OF THE AO FOR FRESH ADJUDICATION AS PER THE PR OVISIONS OF LAW AND IN THE LIGHT OF THE ABOVE-STATED DISCUSSION. WE ARE SETTING ASIDE THE ISSUE TO THE FILE OF THE A O BY OBSERVING THAT THE ENTIRE MATTER NEEDS TO BE LOOKED AFRESH BY THE AO. EVEN IF WE SET ASIDE THE FILE THE LEARNED CIT-A, THEN ALSO REMAND REPORT IS REQUIRED FROM THE AO. THEREFORE, TO CUT SHORT THE TIME IN THE PROCESS ING OF THE FILE, WE REMIT THE MATTER BACK TO THE AO INSTEAD OF LEARNED CIT-A. HENCE THE GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STA TISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S ALLOWED FOR THE STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 31/05/2019 SD/- SD/- (MS. MADHUMITA ROY) (WASEEM A HMED) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 31/05/2019 &.. , .(.. / T.C. NAIR, SR. PS ITA NO.2647/AHD/2017 RAJGOPAL PROCESSING MILLS P.LTD. VS. ITO ASS T.YEAR 2012-13 - 6 - / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-7, AHMEDABAD 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) $%, / ITAT, AHMEDABAD 1. DATE OF DICTATION 29.5.19 (WORD PROCESSED BY HON BLE AM IN HIS COMPUTER BY DRAGON) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30.5.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 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.31.5.19 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 31.5.19 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