ACIT, CHENNAI V. Kotec Automotive Services India Pvt. Ltd., CHENNAI

ITA 3283/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4997 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Department
• Bench Allotted: D
• Next Hearing Date: 24-01-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 05-12-2016
• Court: TRIBUNAL
• Department Lawyers: R DURAIPANDIAN
• Assessee Lawyers: G BASKAR; S SRINIRANJANI
• Keywords: Unexplained cash credit; Assessment record
• Section: 143(3); 142(1); 115JB; 68

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 328 3 /MDS/2016 / ASSESSMENT YEAR :20 12 - 1 3 THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 4(2), CHENNAI 600 034. VS. M/S. KOTEC AUTOMOTIVE SERVICES INDIA PVT. LTD., NO. 109/161, C - 1, 3 RD FLOO R, RASMI APARTMENTS, ST. MARYS ROAD, ALWARPET, CHENNAI 600 018. [PAN: AADCK5007H] ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI R. DURAI PANDIAN, JCIT / RESPONDENT BY : SHRI G. BA SKAR & MS. S. SRINIRANJANI, ADVOCATES / DATE OF HEARING : 24 . 0 1 .201 7 / DATE OF P RONOUNCEMENT : 12 . 0 4 .201 7 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED A GAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 8 , C HENNAI DATED 3 0. 09 .201 6 RELEVANT TO THE ASSESSMENT YEAR 20 12 - 1 3 . THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE REVENUE IS THAT THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MA DE UNDER SECTION 68 OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] TOWARDS UNEXPLAINED CASH CREDIT. I.T.A. NO . 3283 /M/ 1 6 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012 - 13 ON 27 .09.2012 ADMITTING TOTAL INCOME OF . 3,75,68,940 / - . THE RETURN OF INCOME WAS REVISED ON 30.10.2012 ADMITTING A TOTAL INCOME OF .3,75,68,940/ - AND MAT UNDER SECTION 115JB OF THE ACT AT .3,10,86,775/ - . THE RETURN FILED BY THE ASSESSEE WAS SELECTED FOR SCRUTINY AND ISSUED NOTICE UNDER SECTI ON 143(2) OF THE ACT ON 06.08.2013 . THEREAFTER, NOTICE UNDER SECTION 142(1) OF THE ACT WAS ISSUED ON 09.01.2015 CALLING FOR DETAILS ALONG WITH QUESTIONNAIRE. IN RESPONSE THERETO, THE ASSESSEE FURNISHED ALL DETAILS BEFORE THE ASSESSING OFFICER. AFTER EXAMIN ING THE DETAILS FILED BY THE ASSESSEE AND CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED ON 18 .03.2015 ASSESSING TOTAL INCOME OF THE ASSESSEE AT . 4,40,95,640 / - AFTER MAKING VARIOUS ADDITIONS . 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER VERIFYING THE ASSESSMENT RECORDS AND CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) PARTLY ALLOWED THE APPEAL FILED B Y THE ASSESSEE. 4. ON BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST DELETION OF ADDITION OF .50,00,000/ - MADE UNDER SECTION 68 OF THE ACT . THE LD. DR HAS ARGUED THAT THE ASSESSEE HAS NOT SATISFACTORILY EXPLAINED THE SOURCE OF RE CEIPTS AND THE BURDEN LIES ON THE ASSESSEE TO I.T.A. NO . 3283 /M/ 1 6 3 PROVE THAT THE INCOME IS FROM PARTICULAR SOURCE. HOWEVER, THE ASSESSEE HAS NOT EXPLAINED SOURCE OR FILED CONFIRMATION FROM THE LOAN CREDITOR BEFORE THE ASSESSING OFFICER WITH REGARD TO THE LOAN OF .50 LAKHS DE SPITE SERVICE OF NOTICE UNDER SECTION 142(1) OF THE ACT. THUS, THE LD. DR HAS PLEADED THAT THE ADDITION MADE ON THIS ACCOUNT SHOULD BE SUSTAINED. 5. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE STRONGLY SUPPORTED THE ORDER PASSED BY THE LD. CIT(A ). 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WITH REGARD TO THE ISSUE OF DISALLOWANCE OF . 50.00 LAKHS MADE UNDER SECTION 68 OF THE ACT , ADMITTEDLY, THE ASSESSEE HAS FILED ALL DETAILS INCLUDING BANK STATEMENT BEFORE THE ASSESSING OFFICER FOR VERIFICATION. ON VERIFICATION OF DETAILS FILED BY THE ASSESSEE, THE ASSESSING OFFICER HAS OBSERVED THAT THE LOAN CREDITOR M/S. K1 AUTOTECH ENTERPRISES (P) LTD. DID NOT FILE THE CONFIRMATION LETTER WITH REGARD LOAN. HOWEVER, THOUGH THE ASSESSEE HAS FILED BANK ACCOUNT, THE ASSESSING OFFICER DID NOT RAISE ANY OBJECTION WITH REGARD TO THE TRANSACTIONS AND ACCEP TED THE CLOS ING BALANCE AS ON 31.03.2012 . AFTER VERIFYING THE BANK ACCOUNT AND BY EXTRACTING THE LEDGER ACCOUNT OF M/S. K1 AUTOTECH ENTERPRISE (P) LTD., THE LD. CIT(A) HAS OBSERVED THAT THE AMOUNT OF .50.00 LAKHS WAS PAID BACK TO THE CREDITOR THROUGH THE SAME RBS BANK ACCOUNT. ONCE THE ASSESSING OFFICER HAS ACCEPTED ALL THE OTHER TRANSACTIONS AS PER THE BANK I.T.A. NO . 3283 /M/ 1 6 4 ACCOUNT TO BE IN ORDER, THE LD. CIT(A) HELD THAT THE ASSESSING OFFICER WAS NOT CORRECT TO DISALLOW AS THE TRANSACTION IS NOT GENUINE AND DELETED THE A DDITION MADE ON THIS ACCOUNT. THUS, WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A) AND THEREFORE, THE GROUND RAISED BY THE REVENUE IS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED . ORDER PRONOUNCED O N THE 12 TH APRIL, 201 7 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 12 . 0 4 .201 7 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.