Infinite Salts Worldwide, CHENNAI V. ITO Non Corporate Ward 3(4), CHENNAI

ITA 2683/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9652 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 19-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained expenditure
• Section: 69C

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.2683/CHNY/2018 ( )( / ASSESSMENT YEAR : 2015-16 M/S INFINITE SALTS WORLDWIDE, NO.8, RUTLAND GATE, 5 TH STREET, NUNGAMBAKKAM, CHENNAI - 600 006. PAN : AACFI 8355 G V. THE INCOME TAX OFFICER, NON CORPORATE WARD -3(4), CHENNAI. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI T. VASUDEVAN, ADVOCATE -.+, / 0 / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL.CIT 1 / 2$ / DATE OF HEARING : 13.06.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -4, CHENNAI, D ATED 17.07.2018 AND PERTAINS TO ASSESSMENT YEAR 2015-16. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ADDIT ION OF 67,47,436/- AS UNEXPLAINED EXPENDITURE UNDER SECTION 69C OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 2 I.T.A. NO.2683/CHNY/18 3. DURING THE COURSE OF HEARING, SHRI T. VASUDEVAN, THE LD.COUNSEL FOR THE ASSESSEE, SUBMITTED THAT A PART OF PAYMENT WAS MADE DURING THE EARLIER ASSESSMENT YEAR. PLACING RELIANCE ON THE S TATEMENT OF BANK ACCOUNTS, THE LD.COUNSEL SUBMITTED THAT THE FUNDS W ERE PHYSICALLY TRANSFERRED DURING THE EARLIER ASSESSMENT YEAR, THE REFORE, THERE CANNOT BE ANY ADDITION DURING THE YEAR UNDER CONSIDERATION. 4. WE HEARD SHRI R. CLEMENT RAMESH KUMAR, THE LD. D EPARTMENTAL REPRESENTATIVE ALSO. ACCORDING TO THE LD. D.R., EV EN THOUGH THE ASSESSEE CLAIMS THAT PART OF AMOUNT WAS PAID DURING THE EARLIER ASSESSMENT YEAR, THE FINANCIALS FILED BY THE ASSESS EE DISCLOSES THE PAYMENT DURING THE YEAR UNDER CONSIDERATION. THERE FORE, ACCORDING TO THE LD. D.R., THE ASSESSING OFFICER HAS TAKEN THE E XPENDITURE DURING THE YEAR UNDER CONSIDERATION. SINCE, NOW, THE ASSESSEE CLAIMS THAT THE PAYMENT WAS MADE IN THE EARLIER ASSESSMENT YEAR ON THE BASIS OF THE BANK STATEMENT, ACCORDING TO THE LD. REPRESENTATIVE , THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION. 5. HAVING HEARD THE LD.COUNSEL FOR THE ASSESSEE AND THE LD. D.R., WE HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE SPECIFICALLY CLAIMS THAT A PART OF PAYMENT WAS MADE DURING THE EARLIER ASSESSMENT YEAR ON THE BASIS OF THE STATEMENT OF BA NK ACCOUNT. IF THE FUNDS WERE PHYSICALLY TRANSFERRED DURING THE EARLIE R ASSESSMENT YEAR 3 I.T.A. NO.2683/CHNY/18 THROUGH BANKING CHANNEL, THIS TRIBUNAL IS OF THE CO NSIDERED OPINION THAT SUCH AMOUNT CANNOT BE UNEXPLAINED EXPENDITURE DURIN G THE YEAR UNDER CONSIDERATION. IT MAY BE UNEXPLAINED EXPENDITURE F OR THE EARLIER ASSESSMENT YEAR. HOWEVER, THERE CANNOT BE ADDITION DURING THE YEAR UNDER CONSIDERATION. SINCE THE ASSESSEE SPECIFICAL LY CLAIMS ON THE BASIS OF BANK STATEMENT, THIS TRIBUNAL IS OF THE CONSIDER ED OPINION THAT THE MATTER NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFF ICER. ACCORDINGLY, THE ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET AS IDE AND THE ISSUE OF ADDITION UNDER SECTION 69C OF THE ACT WITH REGARD T O UNEXPLAINED EXPENDITURE IS REMITTED BACK TO THE FILE OF THE ASS ESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER ON TH E BASIS OF THE BANK STATEMENT AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESS EE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 19 TH JUNE, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 19 TH JUNE, 2019. KRI. 4 I.T.A. NO.2683/CHNY/18 / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-4, CHENNAI-34 4. PRINCIPAL CIT-5, CHENNAI 5. 8; -2 /DR 6. <( = /GF.