Tamilnadu Sugar Corporation Ltd. , CHENNAI V. ACIT Corporate Circle 3(1) , CHENNAI

ITA 318/CHNY/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5328 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 07-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Corroborative evidences; Validity of assessment
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण ’ए ’Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ŵी महावीर िसंह, उपाȯƗ एवं माननीय ŵी मनोज कु मार अŤवाल ,लेखा सद˟ के समƗ। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ITA Nos. 318 & 319/Chny/2019 (िनधाŊरणवषŊ / Assessment Years: 2008-09 & 2009-10) M/s. Tamil Nadu Sugar Corporation No 690, EVR Periyar Building, Anna Salai,Nandanam, Chennai – 600 035. बनाम / Vs. ACIT Corporate Circle 3(1), Chennai. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAACT-1308-B (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Ms. N.V. Lakshmi (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Mr. ARV Sreenivasan (Addl. CIT) – Ld. DR सुनवाईकीतारीख/ Date of Hearing : 04-04-2022 घोषणाकीतारीख / Date of Pronouncement : 04-04-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Years (AY) 2008- 09 & 2009-10 arises out of the separate orders passed by learned Commissioner of Income Tax (Appeals)-7, Chennai [CIT(A)] dated 27.11.2018.The facts as well as the issues in both the appeals are substantially the same. 2. The Ld. AR, drawing attention to the reasons recorded, assailed the validity of assessment proceedings. On merits, Ld. AR submitted that ITA Nos.318 & 319/Chny/2019 - 2 - there was no unexplained cash credit in the books of the assessee as alleged by Ld. AO. The Ld. Sr. DR, on the other hand, justified the reassessment proceedings as well as the quantum additions. Having heard rival submissions, our adjudication would be as given in succeeding paragraphs. The assessee is a Tamil Nadu State Government owned Public Sector Company. 3. For AY 2008-09, the regular return was scrutinized u/s 143(3) on 03.11.2010. However, the case was reopened on the allegation that the assessee received unexplained cash credit of Rs.1 Lacs (Para-1 of the assessment order). The said transactions were alleged to be carried out by the assessee with M/s Praj Industries, M/s Steel Aids India, M/s Steel Aids India Pvt. Ltd., Shri Suresh Bokadia and Shri Anirudha Phadke. The assessee failed to file specific replies to the questionnaire issued by Ld. AO and accordingly, the amount of Rs.1 Lacs was added to the income of the assessee. 4. During appellate proceedings, the assessee submitted that there were no such transactions carried out by assessee with M/s Praj Industries as alleged by Ld. AO. Therefore, in such a case, no additions could be made u/s 68. The assessee also assailed the validity of reassessment proceedings which were rejected by Ld. CIT(A) on the ground that the case was reopened on the basis of receipt of information from investigation wing which was not available to Ld. AO at the time of framing of assessment. On merits, Ld. CIT(A) observed that as per information culled out from the laptop computer of one Shri Anirudha Phadke of M/s Praj Industries, entries of alleged cash payment to the assessee to the tune of Rs.1 Lacs was found to have been entered. As per letter received from DDIT (Inv.) Pune, instances of cash received by ITA Nos.318 & 319/Chny/2019 - 3 - the assessee for Rs.9 Lacs during FYs 2007-08 & 2008-09 were noted. On the basis of same, Ld. CIT(A) concluded that there were corroborative evidences in the form of documents impounded from Shri Anirudha Phadke which could not be simply brushed aside. Going by the findings of the investigation wing, the additions were to be confirmed. Aggrieved, the assessee is in further appeal before us. 5. Upon careful consideration of factual matrix, we find that except for investigation wing letter, there is absolutely no material with revenue to hold that the assessee received any cash from M/s Praj Industries. The assessee has altogether denied having entered into any transaction with any of the entity as searched by the investigation wing. There are no findings that there is any cash credit in the books of the assessee. The additions are purely on mere allegations which have no legs to stand. No investigation, whatsoever, has been carried out by lower authorities to establish the case of the revenue. On legal grounds also the assessee succeeds. Upon perusal of reasons recorded (page-5 of the paper- book), Ld. AO has alleged that there are cash receipts to the tune of Rs.9 Lacs which represent unexplained cash credit and the same had to be brought to tax. However, the body of assessment order alleges that the assessee has received unexplained cash credit of Rs.1 Lacs. Thus, there is ambiguity in the reasons recorded to reopen the case of the assessee. Nowhere, it has been established by Ld. AO that cash credits have been received by the assessee either in the books of accounts or out of books of accounts. Therefore, we delete the impugned additions and allow the appeal of the assessee. 6. Similar are the facts in AY 2009-10. It has been alleged that the assessee has received unexplained cash credit of Rs.8 Lacs and the ITA Nos.318 & 319/Chny/2019 - 4 - same has been added to the income of the assessee. The impugned order is on similar lines which has confirmed the impugned additions. Aggrieved, the assessee is in further appeal before us. Facts being pari- materia the same, our adjudication as for AY 2008-09 shall mutatis- mutandis apply to this year also. The impugned additions stand deleted and the appeal stands allowed. 7. Both the appeals stand allowed in terms of our above order. Order pronounced on 04 th April, 2022. Sd/- (MAHAVIR SINGH) उपाȯƗ /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखासद˟ /ACCOUNTANT MEMBER चेɄई/ Chennai; िदनांक/ Dated : 04-04-2022 JPV आदेशकीŮितिलिपअŤेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकरआयुᲦ (अपील)/CIT(A) 4. आयकरआयुᲦ/CIT 5. िवभागीयᮧितिनिध/DR 6. गाडᭅफाईल/GF