EVERGREEN INFRASTRUCTURES , MUMBAI V. ACIT, CIRCLE 31(1), MUMBAI

ITA 3170/MUM/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 5563 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 06-08-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 12-06-2024
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 147; 68; 148; 69C; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No.3171 & 3170/M/2024 Assessment Years: 2012-13 & 2013-14 M/s. Evergreen Infrastructures, 12 th Floor, E.E. Heights, 12 th Floor, Beside KFC, SV Road, Jogeshwari West, Mumbai, Maharashtra-400 102 PAN: AACFE6568R Vs. Asst. Commissioner of Income Tax, Circle-31(1), C-11, 7 th Floor, Pratyakshakar Bhavan, Bandra Kurla Complex(E), Mumbai – 400 051 (Appellant) (Respondent) Present for: Assessee by : None Revenue by : Shri Biswanath Das, CIT-DR Shri P.D. Chougule, D.R. Date of Hearing : 07 . 08 .2024 Date of Pronouncement : 19 . 08 .2024 O R D E R Per : Narender Kumar Choudhry, Judicial Member: These appeals have been preferred by the Assessee against the orders even dated 21.05.2024, impugned herein, passed by the Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2012-13 & 2013-14. ITA No.3171 & 3170/M/2024 M/s. Evergreen Infrastructures 2 2. Notice for date of hearing on 07. 08 .2024 sent through post at the address mentioned in Form-36, has been returned back by the Postal Department with remarks “insufficient Address”. The Registry do not have any alternate postal address. Even otherwise the assessee neither appeared not filed any adjournment application, hence we are constrained to decide these appeals by this ex-parte order. 3. First, we will decide ITA No.3171/M/2024 as a lead case. In this case, the case of the Assessee was reopened by recording reasons for reopening u/s 147 of Act and consequently notice dated 13.06.2014 u/s 148 of the Act was issued, in response to which the Assessee has filed its return of income declaring income of Rs.2,08,29,240/- on 13.06.2014 along with computation of income. 3.1 Thereafter, statutory notices were issued to the Assessee, however the Assessee made no compliance and therefore on perusing the bank statement of DCB Bank, Jogeshwari (W) it was seen by the AO that the Assessee has received certain amounts and deposited cash in this account. Therefore, in order to verify, the AO issued show cause notice dated 09.03.2016, along with details of the deposits. However, the Assessee made still no compliance and therefore the AO by observing that it is established that the Assessee failed to prove all the three conditions laid down u/s 68 of the Act, hence the amount of Rs.2,76,86,000/- is added as unexplained cash credit u/s 68 of the Act. ITA No.3171 & 3170/M/2024 M/s. Evergreen Infrastructures 3 3.2 The AO also observed from the bank statement received from Bank of Baroda that during the year under consideration partner of the Assessee firm has introduced Rs.7,50,000/- as capital by depositing in the bank account of the firm and therefore the Assessee was show caused vide notice dated 09.03.2016. However, the Assessee has not furnished any of the details of source of the capital brought by the partner, which also could not be verified, as the Assessee has not filed return of income for the year under consideration. It is established that the Assessee failed to prove creditworthiness as well as genuineness of the said transaction laid down in section 68 of the Act in respect of capital brought by the partner, hence the amount of Rs.7,50,000/- is treated as an explained cash credit in the hands of the Assessee and added to the total income of the Assessee u/s 68 of the Act. 3.3 In effect, the AO made the total addition of Rs. 2,84,36,000/- (Rs.2,76,86,000/- + Rs.7,50,000/-). 4. The Assessee, being aggrieved, though challenged the aforesaid additions before the Ld. Commissioner but in spite of sending various notices, made no compliance and therefore in the constrained circumstances, the Ld. Commissioner specifically in the absence of any submission and documents, decided the issues on the basis of material available before him and ultimately affirmed the aforesaid additions of Rs.27,68,600/- + Rs.7,50,000/- mainly on the ground that the Assessee has neither filed any submission in respect of the matter/ground nor ITA No.3171 & 3170/M/2024 M/s. Evergreen Infrastructures 4 any documentary evidence to explain the sources of the credits in the bank accounts maintained by the Assessee. 5. We have given thoughtful considerations to the peculiar facts and circumstances of the case and observed that before both the authorities below the Assessee has not only failed to demonstrate/substantiate its deposits in its bank accounts but also failed to file any documentary evidence and therefore the authorities below have correctly made and affirmed the addition. Even otherwise we do not find any material and/or reason to contradict the findings of the Ld. Commissioner specifically. Hence, the appeal i.e. ITA No.3171/M/2024 filed by the Assessee is liable to be dismissed. 6. Coming to the ITA no.3170/M/2024, we observe that in this case, identical additions as involved in ITA No.3171/M/2024 relevant to the A.Y. 2012-13 have also been made by the AO, on failure of the Assessee to submit the relevant admissions/documents and for not substantiating the deposits made by the Assessee. In addition to aforesaid additions on account of deposits made in the bank accounts the AO also made the addition of Rs.5,19,000/- on account of disallowance of expenses incurred in cash on travelling u/s 69C of the Act. 6.1 The Assessee though challenged the aforesaid additions before the Ld. Commissioner, however, in spite of sending various notices made no compliance. Therefore, the Ld. Commissioner in the absence of relevant submissions/documents ITA No.3171 & 3170/M/2024 M/s. Evergreen Infrastructures 5 with regard to the aforesaid additions and in the constrained circumstances affirmed the aforesaid additions. We also do not find any material/reason contrary to the findings of the Ld. Commissioner, hence, inclined not to interfere in the decision of the Ld. Commissioner in affirming the additions under challenge. Accordingly, the appeal filed by Assessee is liable to be dismissed. 7. In the result, both the appeals under consideration stands dismissed, however with liberty to the Assessee to seek recalling of this order by substantiating the reason for non-appearance before the Tribunal. Order pronounced in the open court on 19.08.2024. Sd/- Sd/- (RATNESH NANDAN SAHAY) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai.