M/s Srithik Ispat Private Limited, Sanguem V. Assistant Commissioner of Income Tax, Circle - 2(1), Panaji

ITA 278/PAN/2019

AI Insights

The case involves M/s. Srithik Ispat Private Limited, a company engaged in steel manufacturing, which filed an appeal against the order of the Commissioner of Income Tax (Appeals)-1, Panaji. The appeal pertained to the assessment year 2015-16, where the company declared a loss in its return of income. The Assessing Officer made several disallowances and additions, including a significant addition of Rs.2,00,00,000 as unexplained cash credit under section 68 read with section 115BBE, which was confirmed by the CIT(A). The Tribunal dismissed the appeal, supporting the findings of the lower authorities.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136987 (ITAT-PANAJI)
• Duration Of Justice: 3 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: WT(D)
• Next Hearing Date: 13-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 20-10-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Accommodation entries
• Section: 68; 43B; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI – VIRTUAL COURT BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.278/PAN/2019 िनधाᭅरण वषᭅ / Assessment Year : 2015-16 M/s. Srithik Ispat Private Limited, Plot No.3, Sanguem Industrial Estate, Sanguem, Goa- 403704. PAN : AAICS1765P Vs. ACIT, Circle-2(1), Panaji. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)-1, Panaji [‘the CIT(A)’] dated 30.08.2019 for the assessment year 2015-16. 2. Briefly, the facts of the case are that the appellant is a Private Limited Company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of Assessee by : None Revenue by : Shri N. Shrikanth Date of hearing : 14.07.2023 Date of pronouncement : 18.07.2023 ITA No.278/PAN/2019 2 manufacturing of steel. The Return of Income for the assessment year 2015-16 was filed on 28.11.2015 declaring a loss of Rs.4,05,16,885/-. Against the said return of income, the assessment was completed by the Asstt. Commissioner of Income Tax, Circle- 2(1), Panaji (‘the Assessing Officer’) vide order dated 29.12.2017 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at a total loss of Rs.3,70,83,306/-. While doing so, the Assessing Officer made disallowance u/s 43B of Rs.25,05,139/- being statutory dues unpaid. Similarly, the Assessing Officer made disallowance u/s 40(a)(ia) for failure of the assessee to deduct tax at source on the payment of Rs.30,94,800/- by disallowing at 30% amounting to Rs.9,28,440/-. Similarly, the Assessing Officer made addition of Rs.2,00,00,000/- by holding that the appellant is a beneficiary of accommodation entries received from M/s. Vedarambh Properties LLP. In this connection, the Assessing Officer also recorded the statement from one Mrs. Girija Agarwal and also brought on record the Investigation Report of Income Tax Department, Bombay, wherein, the same M/s. Vedarambh Properties LLP had admitted that it is an accommodation entries provided to the assessee. The ITA No.278/PAN/2019 3 Assessing Officer brought to tax on the said sum under the provisions of section 68 r.w.s. 115BBE under head “Income from other sources”. Even on appeal before the ld. CIT(A), the addition of Rs.2,00,00,000/- was confirmed. However, the addition made u/s 43B was set-aside to the Assessing Officer for verification. 3. Being aggrieved, the appellant is in appeal before us in the present appeal. 4. When the appeal was called on, none appeared on behalf of the assessee despite due service of notice of hearing. On the other hand, ld. Sr. DR relied on the orders of the lower authorities. 5. We heard the ld. Sr. DR and perused the material on record. We had carefully gone through the assessment order, wherein, the Assessing Officer clearly brought out the true nature of transactions of the money credited in the books of accounts in the name of M/s. Vedarambh Properties LLP of Rs.2,00,00,000/-. The material on record clearly indicates that it is nothing but an accommodation entries provided by the said company. The Assessing Officer had rightly invoked the provisions of section 115BBE that the assessee ITA No.278/PAN/2019 4 had not offered any explanation as to the source of this unaccounted money brought into the books of accounts as accommodation entries provided by the said company. Thus, we do not find any merit in the appeal filed by the assessee. 6. In the result, the appeal filed by the assessee stands dismissed. Order pronounced on this 18 th day of July, 2023. Sd/- Sd/- (S. S. GODARA) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 18 th July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-1, Panaji. 4. The Pr. CIT, Panaji. 5. DR, ITAT, Panaji. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.