EASTERN OCEANIC IMPEX P.LTD, MUMBAI V. ITO 4(1)(4), MUMBAI

ITA 316/MUM/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1345 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 26-12-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 20-01-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G NANTHAKUMAR
• Keywords: Search and seizure
• Section: 143(3); 142(1); 69; 148; 132

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI . . , , BEFORE SHRI C.N. PRASAD , JM AND SHRI RAJESH KUMAR , AM ITA NO. 316 /MUM/ 20 1 6 ( / ASSESSMENT YEAR: 20 08 - 09 ) M/S EASTERN OCEANIC IMPEX PVT LTD., 109, PARASRAM BUILDING, DR.BABASAHEB JAYAKAR MARG, MUMBAI - 400002 / VS. INCOME TAX OFFICER, 4(1)(4) , ROOM NO.6 37A, 6 TH FLOOR, AAYAKAR BHAVAN, M K ROAD , MUMBAI - 400020 ./ ./ PAN : AAACE0981B ( / APPELLANT) : ( / RESPONDENT ) / APPELLANT BY : NONE /RESPONDENT BY : SHRI G NANTHA KUMAR / DATE OF HEARING : 2 6 . 12.206 / DATE OF PRONOUNCEMENT : 29. 12. 2016 / O R D E R PER RAJESH KUMAR, A. M: THIS IS AN APPEAL FILED BY THE ASSESSEE CHALLENGING THE ORDER DATED 26.10.2015 PASSED BY THE LD.CIT(A) - 9 , MUMBAI FOR THE ASSESSMENT YEAR 20 08 - 0 9 . 2. THIS APPEAL WAS FIXED FOR HEARING ON 3.10.2016 AND AT THE TIME OF HEARING NEITHER THE ASSESSEE NOR HIS AUTHORIZED REPRESENTATIVE APPEARED TO ATTEND THE HEARING DESPITE SERVICE OF NOTICE THROUGH RPAD. THEREFORE, BENCH DIRECTED THE REGISTRY TO ISSUE N OTICE TO THE ASSESSEE AND ADJOURN THE 2 ITA NO. 316 /MUM/201 6 APPEAL FOR HEARING ON 26.12.2016. TODAY ALSO DESPITE SERVICE OF NOTICE, NEITHER THE ASSESSEE APPEARED BEFORE US NOR THERE IS ANY APPLICATION ON BEHALF OF THE ASSESSEE SEEKING ADJOURNMENT OR OTHERWISE. THEREFORE, WE PRO CEED TO ADJUDICATE THE APPEAL FILED BY THE ASSESSEE EX - PARTE AFTER HEARING THE LD.DR AND ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME ON 17.9.2008 DECLARING A LOSS OF RS.41,069/ - . THE AO, THEREAFTER RECEIVED IN INFORMATION FROM THE ADDL. DIT, UNIT - 1, MUMBAI VIDE LETTER DATED 12.09.2011 STATING THAT SEARCH AND SEIZURE ACTION UNDER SECTION 132 OF THE INCOME TAX ACT, 1961 WAS CONDUCTED IN THE CASE OF M/S MAHASAGAR SECURITIES PVT LTD (NOW KNOWN AS ALAG SECURITIES PVT LTD) AND ITS GROUP COMPANIES WHICH WERE FOUND TO BE ENGAGED IN THE BUSINESS OF ISSU ING BOGUS BILLS. UPON VERIFICATION OF THE SAID INFORMATION, THE AO FOUND THAT THE ASSESSEE HAS RECEIVED RS.15 LAKHS FROM M/S BUNIYAD CHEMICALS LTD AND RS.10 LAKHS FROM M/S TALENT INFOWAY LTD A GROUP CONCERN OF MR.MUKESH CHO K SHI, AS SHARE APPLICATION MONEY FOR EQUITY SHARES AND ACCORDINGLY DURING THE YEAR 2008 - 09, 3000 AND 2000 EQUITY SHARES WERE ISSUED TO M/S B UNIYAD CHEMICALS LTD AN D TALENT INFOWAY LTD. REPECTIVELY. ACCORDINGLY, THE AO CAME TO THE CONCLUSION THAT THERE WERE STRONG REASONS TO BELIEVE THAT RS.25 LAKHS RECEIVED FROM THESE COMPANIES WERE UNACCOUNTED MONEY ROUTED THROUGH THESE THOUGH SHARE APPLICATION MONEY ENTRIES P ROVIDED BY THE ABOVE SAID TWO COMPANIES. ACCORDINGLY, THE CASE 3 ITA NO. 316 /MUM/201 6 OF THE ASSESSEE WAS REOPENED BY ISSUING NOTICE UNDER SECTION 148 OF THE ACT DATED 27.3.2012 . I N RESPONSE THERETO THE ASSESSEE VIDE LETTER DATED 29.3.2012 FILED REPLY AND THEREAFTER STATUTORY NOTICES U/S 143(2) AND 142(1) WERE ISSUED AND SERVED UPON THE ASSESSEE . FINALLY, THE ASSESSMENT WAS COMPLETED BY MAKING ADDITION OF RS.25 LAKHS TO THE TOTAL INCOME OF THE ASSESSEE VIDE ASSESSMENT ORDER DATED 5.3.2013 BY ASSESSING THE INCOME OF THE AS SESSEE AT RS.24,56,358/ - PASSED UNDER SECTION 143(3) R.W.S.147 OF THE ACT. IN THE APPELLATE PROCEEDINGS, THE LD.CIT(A) ALSO UPHELD THE ACTION OF THE AO BY HOLDING THAT THE APPELLANT FAILED TO PROVE GENUINENESS OF THE TRANSACTION S IN RELATION TO APPLIC ATION MONEY OF RS.25 LAKHS AND THEREFORE UPH E LD THE ADDITION MADE BY THE AO U/S 69A OF THE ACT AFTER GIVING DETAILED AND COMPREHENSIVE OBSERVATION FROM PARA 3 AND 4 OF THE APPELLATE ORDER. 4 . WE HAVE CAREFULLY CONSIDERED THE CONTENTIONS OF THE LD.DR AND PERUSED THE MATERIAL AVAILABLE BEFORE INCLUDING THE ORDERS OF AUTHORITIES BELOW. WE FIND THAT THE ASSESSEE HAS RECEIVED RS.25 LAKHS FROM TWO COMPANIES AS SHARE APPLICATION MONEY WHO WERE ENGAGED IN ISSUING FRAUDULENT AND BOGUS BILLS AS FOUND DURING THE SE ARCH CONDUCTED BY THE ADD.ADIT, MUMBAI AND ASSESSEE WAS ONE OF THE BENEFICIAR IES OF THE SAID FRAUDULENT BILLING . T HEREAFTER THE CASE OF THE ASSESSEE WAS REOPENED AND ADDITION WAS MADE UNDER SECTION 69 OF THE ACT. IN THE FAA , THE LD. CIT(A) ALSO CONFIRME D THE ACTION OF THE AO BY GIVING DETAILED OBSERVATIONS. THE 4 ITA NO. 316 /MUM/201 6 ORDER OF FAA APPEARS TO BE CORRECT AND REASONED ORDER AS THE LD.FAA CONSIDERED ALL THE ASPECTS OF THE MATTER. MOREOVER, T HERE IS NO MATERIAL ON RECORD TO CONTROVERT THE FINDINGS OF THE REVENUE AUTHORITIES AND THEREFORE, WE ARE INCLINED TO UPHOLD THE ORDER OF LD.CIT(A) BY DISMISSING THE APPEAL OF THE ASSESSEE. 5 . IN T HE R ESULT, THE APPEAL OF T HE AS S E S SEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29TH DEC,2016 ( C.N. PRASAD ) ( RAJESH KUMAR) / J UDICIAL MEMBER / A CCOUNTANT MEMBER MUMBAI ; DATED : 29. 12. 201 6 SRL,SR.PS / COPY OF THE ORDER FORWARDED TO : 1. / TH E APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, T RUE COPY / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI