S F BUILDERS P LTD, CHENNAI V. ITO, CORP WARD -6(2), CHENNAI

ITA 3188/CHNY/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 6806 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 26-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R ANITA
• Assessee Lawyers: PRANAY J SHAH ACA

Judgement Text

, / SMC , IN THE INCOME TAX APPELLATE TRIBUNAL D/SMC BENCH, CHENNAI , , % BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 3188/CHNY/2018 / ASSESSMENT YEAR : 2013-14 M/S. S F BUILDERS P. LTD., CHENNAI CITY CENTER, 4 TH FLOOR, 10 &11, DR. RADHAKRISHNAN SALAI, MYLAPORE, CHENNAI 600 004. [PAN: AALCS 6491F] VS. INCOME TAX OFFICER, CORPORATE WARD 6(2), CHENNAI. ( / APPELLANT) ( &'( /RESPONDENT ) ( ) / APPELLANT BY : SHRI. PRANAY J. SHAH, ACA &'( ) / RESPONDENT BY : MS. R. ANITA, JCIT ) /DATE OF HEARING : 04.12.2019 ) /DATE OF PRONOUNCEMENT : 05.12.2019 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI IN ITA NO. 198/CIT(A)-16/2013-14 DATED 27.09.2018 FOR ASSESSME NT YEAR 2013-14. 2. M/S. S F BUILDERS PVT. LTD., THE ASSESSEE, IS EN GAGED IN DEVELOPMENT OF HOUSING PLOTS IN THE SUBURBS OF MAJO R CITIES IN TAMIL :-2-: ITA NO. 3188/CHNY/2018 NADU AS WELL AS BUDGET HOUSING UNITS. WHILE MAKING THE ASSESSMENT FOR ASSESSMENT YEAR 2013-14, THE AO NOTICED THAT THE AS SESSEE HAS SHOWN RS. 18 LAKHS AS CREDIT BALANCE, AS PAYABLE TO SHRI. D. MANOHARAN FOR THE PURCHASE OF THE PROPERTY. THE PROPERTY WAS REGISTE RED IN THE NAME OF THE ASSESSEE COMPANY ON 27.07.2011. THE ASSESSEE S UBMITTED THAT M/S. ETA STAR TECH CITY P. LTD., PAID AN AMOUNT DUE TO S HRI D. MANOHARAN FOR THE FINANCIAL YEAR 2011-12. HOWEVER, THE ASSESSEE COULD NOT PROVIDE THE PAYMENT DETAILS MADE BY M/S. ETA STAR TECH CITY P. LTD. TO SHRI. D. MANOHARAN NOR COULD NOT MATCH WITH THE PAYMENT DETA ILS AS PER RELEVANT SALE DEEDS. THE LETTER ISSUED BY THE AO TO SHRI D. MANOHARAN IN THE ADDRESS GIVEN BY THE ASSESSEE WAS RETURNED BY THE P OSTAL AUTHORITY WITH A REMARK AS INSUFFICIENT ADDRESS. THE AO FOUND T HAT THE ADDRESS GIVEN BY THE ASSESSEE IS NOTHING BUT A SITE ADDRESS OF M/ S. HI POWER V INFRASTRUCTURE LTD., A SISTER CONCERN OF THE ASSESS EE . IN THE FACTS AND CIRCUMSTANCES, THE AO HELD THAT THE ASSESSEE DID NO T PROVE THE CREDIT ENTRY AND HENCE ADDED RS. 18 LAKHS TO THE RETURNED INCOME AND COMPLETED THE ASSESSMENT. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE LD. CIT(A) DISMISSED THE AP PEAL. 3. AGGRIEVED AGAINST THAT ORDER THE ASSESSEE FILED THIS APPEAL. THE LD. AR SUBMITTED THAT THE ASSESSEE FILED CONFIRMATI ON LETTERS BEFORE THE AO DATED 25.02.2016 & 31.03.2016 AND THE TRANSACTIO NS ARE UNDERTAKEN THROUGH BANKING CHANNEL. THEREFORE, IT WAS PLEADED THAT THE APPEAL BE :-3-: ITA NO. 3188/CHNY/2018 ALLOWED. PER CONTRA, THE LD. DR SUBMITTED THAT THE ASSESSEE CONTENTED THAT IT HAS PURCHASED LAND FROM SHRI D. MANOHARAN A ND PAID THE SAME IN THE EARLIER YEAR I.E., DURING ASSESSMENT YEAR 2012 -13 ITSELF. HOWEVER, DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR 2 013-14, SHRI. D. MANOHARAN, WAS SHOWN AS A CREDITOR IN THE BALANCE S HEET. SINCE, THE ASSESSEE CONTENDED THAT THE PAYMENT WAS MADE BY A G ROUP CONCERN TO SHRI. D. MANOHARAN, IN THAT CASE NAME THE GROUP CON CERN SHOULD HAVE BEEN SHOWN IN THE BALANCE SHEET INSTEAD OF SHRI. D. MANOHARAN. IT HAS NOT DONE SO. FURTHER, PERUSAL OF THE BANK ACCOUNT OF M/S. ETA STAR TECH CITY P. LTD., DID NOT MENTION THE NAME OF SHRI. D. MANOHARAN. THE ASSESSEE ALSO COULD NOT PRODUCE ANY EVIDENCE WHICH CAN SHOW THAT RS. 18 LAKHS HAS BEEN PAID BY M/S. ETA STAR TECH CITY P . LTD. TO SHRI. D. MANOHARAN. CONSIDERING ALL THESE FACTS, THE LD. CI T(A) DISMISSED THE APPEAL AND HENCE THE LD. DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. THOUGH, THE IMPUGNED TRANSACTION WAS COM PLETED IN THE EARLIER ASSESSMENT YEAR ITSELF, THE ASSESSEE HAS SHOWN IN I TS BOOKS OF ACCOUNTS THAT RS. 18 LAKHS WAS PAYABLE TO SHRI. D. MANOHARAN . THE ASSESSEE COULD NOT PRODUCE THE REQUIRED EVIDENCES BEFORE THE LOWER AUTHORITIES. CONSIDERING THE ASSESSEES PLEA AND THE INABILITY O F THE ASSESSEE IN EXPLAINING THE TRANSACTION BEFORE THE LOWER AUTHORI TIES, WE DEEM IT FIT TO :-4-: ITA NO. 3188/CHNY/2018 REMIT BACK THIS ISSUE TO THE AO, WITH A DIRECTION T O THE ASSESSEE TO PRODUCE SHRI. D. MANOHARAN WITH RELEVANT MATERIAL B EFORE THE AO, FOR A FRESH EXAMINATION. THE ASSESSING OFFICER ON DUE EX AMINATION OF THE PARTIES AND AFTER CONSIDERING THEIR EXPLANATIONS, E VIDENCES/MATERIALS PLACED BY THEM IN RESPECT OF THEIR CONTENTIONS AND AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE, SHALL PASS TH E ORDER IN ACCORDANCE WITH LAW. THE AO IS ALSO FREE TO CONDUCT APPROPRIA TE ENQUIRY AS DEEMED FIT, BUT HE SHALL FURNISH ADEQUATE OPPORTUNITY TO THE ASSESSSEE ON THE MATERIAL ETC TO BE USED AGAINST IT AND DECIDE THE MATTER IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THURSDAY, THE 05 TH DECEMBER, 2019 AT CHENNAI. SD/- ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ! /ACCOUNTANT MEMBER /CHENNAI, 1 /DATED: 05 TH DECEMBER, 2019 JPV )&3454 /COPY TO: 1. ( / APPELLANT 2. &'( /RESPONDENT 3. 6 ) ( /CIT(A) 4. 6 /CIT 5. 4& /DR 6. /GF