ITO WD 1(1), KALYAN V. CHARDHAM TRADING P.LTD, BHIWANDI

ITA 3292/MUM/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3750 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 05-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DECIDED
• Keywords: Unexplained cash credit
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 3292/MUM/17 2011-12 INCOME TAX OFFICER, WARD-1(1), KALYAN M/S. CHARDHAM TRADING PVT. LTD., B6/B7/B8, ADDL KALYAN-BHIWANDI INDUSTRIAL AREA, VILLAGE: KON BHIWANDI [PAN : AADCC9744K] 3294/MUM/17 2011-12 M/S. CRAFT TRADING PVT. LTD., B9/B10, ADDL KALYAN- BHIWANDI INDUSTRIAL AREA, VILLAGE: KON BHIWANDI [PAN : AADCC9745J] 3296/MUM/17 2011-12 INCOME TAX OFFICER, WARD-1(3), KALYAN M/S. PATIO MERCANTILE PVT. LTD., E-7, ADDITIONAL KALYAN- BHIWANDI INDUSTRIAL AREA, VILLAGE: KON BHIWANDI [PAN : AAFCP4706J] 3298/MUM/17 2011-12 M/S. PARITYAG TRADING PVT. LTD., E-5/6, ADDL KALYAN- BHIWANDI INDUSTRIAL AREA, VILLAGE: KON BHIWANDI [PAN : AAFCP4705M] APPELLANT B Y : SHRI ARVIND KUMAR , D R RESPONDENT B Y : SHRI VIRAL DOSHI, A R DATE OF HEARING : 18 - 06 - 201 9 DATE OF PRONOUNCEMENT : 20 - 0 8 - 201 9 O R D E R PER RAJESH KUMAR, A.M: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGA INST THE ORDER(S) OF THE COMMISSIONER OF INCOME TAX(APPE ALS)-2, AURANGABAD, ALL DATED 24-02-2017. SINCE COMMON ISSU ES ARE INVOLVED IN ALL THESE APPEALS, EXCEPT THE AMOUNTS M ENTIONED ITA NOS. 3292, 3294, 3296 & 3298/MUM/2017 : 2 : THEREIN, THESE APPEALS ARE HEARD TOGETHER AND DECID ED BY THIS COMMON ORDER. FOR THE SAKE OF CONVENIENCE, APPEAL IN ITA NO.3294/MUM/2017 IS DISCUSSED HERE UNDER: 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS APP EAL IS AGAINST THE DELETION OF ADDITION OF CIT(A), AS MAD E BY THE ASSESSING OFFICER (AO) TOWARDS UNSECURED LOANS OF RS.1,15,06,840/- AND ANOTHER ADDITION OF RS.1,55,27 ,426/-, MADE ON ACCOUNT OF UNEXPLAINED CREDITORS. 3. THE FACTS IN BRIEF ARE THAT, ASSESSEE FILED RETU RN OF INCOME DURING THE YEAR 27-09-2012, DECLARING INCOME AT NIL. THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY THRO UGH CASS AND STATUTORY NOTICE WAS ISSUED AND SERVED UPON TH E ASSESSEE. THE ASSESSEE DID NOT ATTEND THE ASSESSME NT PROCEEDINGS DESPITE SEVERAL OPPORTUNITIES AND THER EFORE, THE AO FRAMED EX-PARTE ORDER U/S.144 OF THE ACT, MAKING ADDITIONS OF RS.1,15,06,840/- ON ACCOUNT OF UN-SECU RED LOANS AND RS.1,55,53,429/- IN RESPECT OF SUNDRY CREDITORS . 4. IN THE APPELLATE PROCEEDINGS, LD. CIT(A) ALLOWED THE APPEAL OF ASSESSEE, AFTER CALLING A REPORT FROM AO. DURING THE REMAND PROCEEDINGS BEFORE THE AO, ASSESSEE FURNISHE D ALL THE EVIDENCES AND DETAILS, WHICH WERE DULY VERIFIED BY THE AO. HOWEVER, AO DECIDED THAT SINCE THE ASSESSEE HAS NOT PRODUCED ALL THE RELEVANT INFORMATION AT THE TIME O F ORIGINAL ASSESSMENT, IT CANNOT BE TAKEN INTO CONSIDERATION A T THIS TIME. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING MATE RIAL ON RECORD, WE OBSERVE THAT LD. CIT(A) HAS ALLOWED THE APPEAL OF ASSESSEE PARTLY, AFTER CALLING THE REMAND REPORT FR OM THE AO. IN THE SAID REMAND REPORT, AO STATED THAT ASSESSEE HAS FILED ALL THE DETAILS QUA UNSECURED SUNDRY CREDITORS, HOWEVER, ITA NOS. 3292, 3294, 3296 & 3298/MUM/2017 : 3 : STATED THESE COULD NOT BE ALLOWED TO BE FILED AT T HIS STAGE AS THE ASSESSEE HAS FAILED TO FILE THESE EVIDENCES IN THE ORIGINAL ASSESSMENT PROCEEDINGS. HOWEVER, CIT(A) SPECIFICAL LY NOTED THAT THE GENUINENESS OF THE UNSECURED LOANS WAS PRO VED BY THE ASSESSEE DURING THE COURSE OF REMAND PROCEEDING S AND SIMILARLY IN RESPECT OF SUNDRY CREDITORS OF RS.1,5 5,27,426/-, LD. CIT(A) OBSERVED THAT THE GENUINENESS OF THE CRE DITORS HAVE BEEN ACCEPTED, AFTER DUE VERIFICATION THEREOF. WE FURTHER NOTE THAT THE AO ALSO SUBMITTED SECOND REPORT BEFORE CIT (A), SUBMITTING THEREIN THAT ASSESSEE-COMPANY HAD PURCHA SED EQUITY SHARES OF M/S.ASMEETA INFRATECH PRIVATE LIMI TED, KANCHAN DEVELOPERS PRIVATE LIMITED AND FROM MALAV S HAH. IT WAS STATED IN THE SAID REPORT THAT THOUGH THE SHARE S HAD BEEN PURCHASED, THE SAME ARE NOT SUPPORTED BY THE VALUA TION REPORT. BY REFERRING TO THE PROVISIONS OF SECTION 56(2)(VIIA) OF THE ACT AND STATED THAT THE ISSUE OF APPLICABILITY OF THIS SECTION COULD NOT BE VERIFIED. HOWEVER, LD. CIT(A) ALLOWED THE APPEAL OF ASSESSEE, BY HOLDING THAT THERE IS NO NEED TO GO INTO THE TECHNICAL ISSUE AT THIS STAGE AND THUS ALLOWED THE APPEAL. AFTER PERUSING THE EVIDENCES ON RECORD AND RIVAL SUBMISSI ONS, WE DO NOT FIND ANY INFIRMITY OR DEFECT IN THE ORDER PASSE D BY THE LD. CIT(A) AND ACCORDINGLY UPHOLD THE SAME BY DISMISSIN G THE GROUNDS RAISED BY THE REVENUE. 6. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ITA NOS. 3292/MUM/17, 3296/MUM/17 & 3298/MUM/17 : 7. AS FAR AS THESE APPEALS ARE CONCERNED, THE ISSUE AND FACTS ARE COMMON IN THESE APPEALS ALSO AS DECIDED B Y US IN ITA NO. 3294/MUM/17, ACCORDINGLY FOLLOWING OUR DECI SION IN ITA 3294/MUM/17, WE UPHOLD THE ORDER OF CIT(A) BY ITA NOS. 3292, 3294, 3296 & 3298/MUM/2017 : 4 : DISMISSING THE GROUNDS RAISED BY THE REVENUE IN THE SE APPEALS. HENCE, THESE APPEALS OF REVENUE ARE ALSO D ISMISSED. 8. TO SUM-UP, ALL THE APPEALS OF REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.08.2019 SD/- SD/- (MAHAVIR SINGH) (RAJESH KUMAR) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /MUMBAI; /DATED : 20.08.2019 TNMM / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A), MUMBAI 4. / CIT, MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, //TRUE COPY// / (DY./ASST. REGISTRAR) , / ITAT, MUMBAI