Sri Parameswari Projects P Ltd, Visakhapatnam V. The ACIT Circle-4(1) Visakhapatnam, Visakhapatnam

ITA 307/VIZ/2011

• Counselvise Citation: 30725314 RSA 2011
• Duration Of Justice: 2 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-07-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 24-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D MANOJ KUMAR
• Assessee Lawyers: Y ANIL KUMAR
• Keywords: Unexplained investment; Opportunity of being heard; Corroborative evidences

Judgement Text

ITA NO.307/VIZAG/2011 SRI PARAMESWARI PROJECTS (P) LTD., VSKP IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 307 /VIZAG/ 2011 ASSESSMENT YEAR : 2006-07 SRI PARAMESWARI PROJECTS P LTD. VISAKHAPATNAM VS. ACIT CIRCLE-4(1) VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO.AAICS 3336E ASSESSEE BY: SHRI Y. ANIL KUMAR, CA REVENUE BY: SHRI D. MANOJ KUMAR, ADDL. CIT DATE OF HEARING : 10.07.2014 DATE OF PRONOUNCEMENT : 10.07.2014 ORDER PER BENCH:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST T HE ORDER OF THE CIT(A), VISAKHAPATNAM DATED 19.7.2011 PERTAINING T O THE ASSESSMENT YEAR 2006-07. 2. BRIEFLY THE FACTS ARE, THE ASSESSEE FOR THE IMPU GNED ASSESSMENT YEAR FILED ITS RETURN OF INCOME DECLARING LOSS OF RS. 14 ,55,069/-. DURING THE ASSESSMENT PROCEEDING, THE AO NOTICED THAT THE ASSE SSEE HAS RECEIVED SHARE CAPITAL OF RS.19,17,050/- OUT OF WHICH AN AMOUNT OF RS.27,24,982/- WAS INTRODUCED DURING THE ASSESSMENT YEAR UNDER CONSIDE RATION. OUT OF THE SAID AMOUNT, AN AMOUNT OF RS.8,80,000/- STATED TO HAVE B EEN RECEIVED FROM 18 PERSONS WAS NOT ACCEPTED BY THE ASSESSING OFFICER W HO TREATED THE SAME AS UNEXPLAINED INVESTMENT AND ADDED IT TO THE INCOME O F THE ASSESSEE. THE ASSESSING OFFICER HELD THAT AS THE ASSESSEE HAS FAI LED TO SUBSTANTIATE WITH SUPPORTING EVIDENCE REGARDING THE IDENTITY, CREDITW ORTHINESS AND GENUINENESS OF THE TRANSACTION, THE SAME CANNOT BE ACCEPTED. ITA NO.307/VIZAG/2011 SRI PARAMESWARI PROJECTS (P) LTD., VSKP 2 3. BEING AGGRIEVED OF THE ASSESSMENT ORDER SO PASSE D, THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A). THE CIT(A) AFT ER EXAMINING CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND EXAMINING THE M ATERIALS ON RECORD ACCEPTED CREDITS TO THE EXTENT OF RS.7,80,000/- AND RESTRICTED THE ADDITION TO RS.1 LAKH REPRESENTING THE SHARE CAPITAL STANDING I N THE NAME OF SHRI P. UMA MAHESWARA RAO AND P. SRINIVASA RAO. 4. BEING AGGRIEVED OF THE AFORESAID ORDER OF THE CI T(A), THE ASSESSEE IS BEFORE US. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIE S AND PERUSED THE MATERIALS ON RECORD. THE SOLE CONTENTION OF THE LD . A.R. BEFORE US IS THAT THE CREDITS RELATING TO THE AFORESAID CREDITORS WERE DI SBELIEVED ON ACCOUNT OF FAILURE ON THE PART OF THE ASSESSEE IN DISCHARGING THE ONUS OF PROVING THE CREDITS. IN THIS CONTEXT, IT WAS SUBMITTED THAT BE FORE THE ASSESSING OFFICER ITSELF, THE ASSESSEE HAS FILED LETTERS REQUESTING T HE ASSESSING OFFICER TO SUMMON THOSE PERSONS AS THEY WERE NOT COOPERATING W ITH THE ASSESSEE. IT WAS SUBMITTED THAT IGNORING SUCH PLEA OF THE ASSESS EE, THE ASSESSING OFFICER HAS COMPLETED THE ASSESSMENT BY TREATING THE AMOUNT S RELATING TO THE AFORESAID TWO PERSONS AS UNEXPLAINED WHICH THE CIT( A) HAS ALSO CONFIRMED WITHOUT CONSIDERING ASSESSEES REQUEST FOR SUMMONIN G THOSE CREDITORS. HE THEREFORE SOUGHT A DIRECTION TO THE ASSESSING OFFIC ER TO ISSUE SUMMONS TO THOSE PERSONS AND DECIDE THE ISSUE ACCORDINGLY. CO NSIDERING THE LIMITED GRIEVANCE OF THE ASSESSEE AND AFTER PERUSING THE LE TTERS WRITTEN TO THE ASSESSING OFFICER REQUESTING FOR SUMMONING THE TWO PERSONS, COPIES OF WHICH ARE AT PAGES 29 AND 32 OF THE PAPER BOOK, WE REMIT THE MATTER RELATING TO THE ADDITION OF RS.1 LAKH TO THE FILE OF THE ASSESS ING OFFICER AND DIRECT HIM TO CONSIDER ASSESSEES APPLICATION FOR ISSUING SUMMONS TO THE CONCERNED ITA NO.307/VIZAG/2011 SRI PARAMESWARI PROJECTS (P) LTD., VSKP 3 PERSONS AND THERE AFTER DECIDE THE ISSUE IN ACCORDA NCE WITH LAW AND AFTER GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSE E IN THE MATTER. 6. IN THE RESULT, ASSESSEES APPEAL IS CONSIDERED TO BE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 10 TH JULY14 SD/- SD/- (J. SUDHAKAR REDDY) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 10 TH JULY, 2014 COPY TO 1 M/S. ROWE & PAL, CHARTERED ACCOUNTANTS, 14-36-1, KRISHNA NAGAR, VISAKHAPATNAM 2 ACIT, CIR CLE - 4(1), VISAKHAPATNAM 3 THE CIT, VISAKHAPATNAM 4 THE CIT(A), VISAKHAPATNAM. 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM