ACIT, Ranchi V. M/s Urmila RCP Projects Pvt. Ltd., Ranchi

ITA 292/RAN/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0033 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2016
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 16-10-2014
• Court: TRIBUNAL
• Department Lawyers: S K PODDAR
• Assessee Lawyers: ABHAY KUMAR
• Keywords: Unexplained cash credit
• Section: 143(3); 68; 6

Judgement Text

1 ITA NO. 292/RAN/2014, AY 2010-11 URMILA RCP PROJECTS PVT. LTD. IN THE INCOME TAX APPELLATE TRIBUNAL: RANCHI BENCH, RANCHI [BEFORE SHRI N. V. VASUDEVAN, JM & SHRI M. BALAGAN ESH, AM] I.T.A NO. 292/RAN/2014 ASSESSMENT YEAR: 2010-11 ASSISTANT COMMISSIONER OF INCOME-TAX, VS. M/S. UR MILA RCP PROJECTS PVT. LTD. CIRCLE-3, RANCHI 1, RCP COMPLEX, KADRU, RANCHI - 834001. (PAN:AACCR5201P) (APPELLANT) (RESPONDENT) DATE OF HEARING: 06.09.2016 DATE OF PRONOUNCEMENT: 09.09.2016 FOR THE APPELLANT: S/SHRI S. K. PODDAR & DEVESH POD DAR, ADVOCATES FOR THE RESPONDENT: SHRI ABHAY KUMAR, DR ORDER PER SHRI M. BALAGANESH, AM: THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A), RANCHI VIDE APPEAL NO. 171/RAN/CO/12-13 DATED 28.07.2014. ASSESSMENT WAS FRAMED BY ACIT, CIRCLE-3, RANCHI U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR AY 2009-10 VIDE HIS ORDER DATED 05.0 3.2013. 2. THE ONLY ISSUE TO BE DECIDED IN THE APPEAL OF T HE REVENUE IS AS TO WHETHER THE LD. CIT(A) IS JUSTIFIED IN DELETING THE ADDITION OF RS.48 LACS TOWARDS CASH CREDIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 2.1. BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSESSE E RECEIVED A SUM OF RS.1,05,88,300/- AS UNSECURED LOAN DURING THE PREVI OUS YEAR AND THE AO OBSERVED THAT THE ASSESSEE COULD NOT PROVE THE IDENTITY, CRE DITWORTHINESS OF THE PARTIES AND GENUINENESS OF THE TRANSACTIONS IN RESPECT OF LOANS RECEIVED FROM SHRI BALESWAR MISHRA AND MUNDESHWARI ENGITECH PVT. LTD. ( IN SHOR T MUNDESHWARI CONSTRUCTION) TOTALING TO RS.48 LACS THE ASSESSEE WAS SHOW CAUSED AS TO WHY THE SAME SHOULD NOT BE TREATED AS UNEXPLAINED CASH CREDIT IN THE HANDS OF THE ASSESSEE. THE ASSESSEE SUBMITTED THE LOAN CONFIRMATION STATEMENT AND PAN A ND CREDITWORTHINESS OF MUNDESHWARI CONSTRUCTION AS REQUIRED BY THE AO FOR VERIFICATION AND ALSO REQUESTED FOR A SHORT DATE FOR SUBMITTING FURTHER D ETAILS AS THE AUTHORIZED 2 ITA NO. 292/RAN/2014, AY 2010-11 URMILA RCP PROJECTS PVT. LTD. REPRESENTATIVE WAS SUFFERING FROM FEVER. THE AO D ID NOT CONSIDER THE CONFIRMATION AND OTHER DETAILS FILED BEFORE HIM AND PROCEEDED TO TREAT THE LOAN CREDITORS AS UNEXPLAINED CASH CREDIT IN THE SUM OF RS.48 LACS AN D COMPLETED THE ASSESSMENT. BEFORE THE LD. CIT(A), THE ASSESSEE FILED THE ENTIR E DETAILS OF THE LOAN CREDITORS PROVING THEIR CREDITWORTHINESS, IDENTITY AND GENUIN ENESS THEREON. THE LD. CIT(A) CALLED FOR A REMAND REPORT FROM THE AO. THE LD. CI T(A) UPON OBTAINING THE REMAND REPORT FROM THE AO OBSERVED THAT A SUM OF RS . 20 LACS WAS GIVEN BY SHRI BALESHWAR MISHRA AS UNSECURED LOAN TO THE ASSESSEE VIDE CHEQUE NO. 793207 DATED 01.10.2009 AND A SUM OF RS.28 LACS WAS GIVEN BY MAA MUNDESHWARI ENGITECH PVT. LTD TO THE ASSESSEE AS UNSECURED LOAN VIDE CHEQUE N O. 400888 ON 28.01.2010. THE LD. CIT(A) OBSERVED THAT SHRI BALESHWAR MISHRA IS A SSESSED TO INCOME TAX WITH PAN: ACBPM7431N AND HAD ALSO FILED RETURN OF INCOME FOR AY 2010-11 DISCLOSING THESE TRANSACTIONS. SIMILARLY, HE ALSO FOUND THAT MUNDESHWARI CONSTRUCTION IS ALSO ASSESSED TO INCOME TAX HAVING PAN: AAFCM9702K WHICH HAD ALSO DISCLOSED THE AMOUNTS PAID TO THE ASSESSEE IN ITS BALANCE SHEET. THE LD. CIT(A) HAS ALSO GIVEN A CATEGORICAL FINDING THAT TH E AO HAD DULY VERIFIED THE VERACITY OF ALL THESE CREDITORS AND HAD NOT GIVEN A NY ADVERSE REMARKS IN HIS REMAND REPORT. BEING CONVINCED WITH THE IDENTITY, CREDITW ORTHINESS AND GENUINENESS OF THE CREDITORS AND THE TRANSACTIONS BEING PROVED BY THE ASSESSEE BEYOND DOUBT, THE LD. CIT(A) PROCEEDED TO DELETE THE ADDITION MADE U/S. 6 8 OF THE ACT. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US ON THE FOLLOWING GRO UND: THE LD. CIT(A) IS NOT JUSTIFIED IN DELETING THE AD DITION OF RS.48,00,000/-. THE LD. CIT(A) FAILED TO APPRECIATE THAT THE AO HAD GIVEN A MPLE OPPORTUNITY (VIDE QUESTIONNAIRE DATED 4.10.2012 AND SHOW CAUSE NOTICE DATED 01.02.2014) TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS AND TRAN SACTION, BUT THE ASSESSEE HAS FAILED TO DO SO IN THE AUDITED ACCOUNT, THE ASSESSE E HAS TAKEN UNSECURED LOAN FROM MUNDESHWARI CONSTRUCTION AMOUNTING TO RS.28,00,000/ -, BUT IN THE APPEAL UNDER THE LD. CIT(A) HAS MENTIONED THE UNSECURED LOAN FROM MA A MUNDESHWARI ENGINTECH PVT. LTD. (AAFCM9702K). 2.2. THE LD. DR VEHEMENTLY RELIED ON THE ORDER OF T HE AO. ON THE OTHER HAND, THE LD. AR VEHEMENTLY RELIED ON THE ORDER OF THE LD . CIT(A). 2.3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROU GH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE LD. CIT(A) HAD GIVEN A CATEGORICAL FINDING THAT THE 3 ITA NO. 292/RAN/2014, AY 2010-11 URMILA RCP PROJECTS PVT. LTD. ASSESSEE HAD DULY PROVED ALL THE THREE NECESSARY IN GREDIENTS OF SECTION 68 OF THE ACT I.E. THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTIONS AND NONE OF THESE FINDINGS WERE CONTROVERTED BY THE REVENUE BEF ORE US. UNDER THESE CIRCUMSTANCES, WE FIND NO JUSTIFIABLE REASON TO INT ERFERE IN THE ORDER OF THE LD. CIT(A) IN THIS REGARD AND THE SAME IS HEREBY UPHELD . ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED. 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 09.09.2016 SD/- SD/- (N. V. VASUDEVAN) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED :9 TH SEPTEMBER, 2016 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT 2 RESPONDENT 3 . THE CIT(A), 4. 5. CIT DR, ITAT, RANCHI / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .