AESTERION STEELS P.LTD, MUMBAI V. ITO 5(1)(1), MUMBAI

ITA 3422/MUM/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0239 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 11-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATISH CHANDRA RAJOREI LD
• Assessee Lawyers: RAJ KUMAR SINGH LD
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

ITA NO. 3422/MUM/2017 AESTEIRON STEELS PRIVATE LIMITED ASSESSMENT YEAR-2012-13 IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.3422/MUM/2017 ( / ASSESSMENT YEAR: 2012-13) AESTEI R ON STEELS PRIVATE LIMITED C/O D.C.BOTHRA & CO. LLP (CA) 297, TARDEO ROAD, WILLE MANSION FF, OPP. BANK OF INDIA NANA CHOWK, MUMBAI 400 007 / VS. INCOME TAX OFFICER 5(1)(1) 5 TH FLOOR, AAYKAR BHAVAN M.K.ROAD MUMBAI 400 020 ./PAN : AAGCA-4397-A ( /APPELLANT ) : ( ! / RESPONDENT ) A SSESSEE BY : RAJ KUMAR SINGH, LD. AR RE VENUE BY : SATISH CHANDRA RAJOREI, LD. DR / DATE OF HEARING : 19/11/2018 / DATE OF PRONOUNCEMENT : 05/12/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2012-13 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) 10, ITA NO. 3422/MUM/2017 AESTEIRON STEELS PRIVATE LIMITED ASSESSMENT YEAR-2012-13 2 MUMBAI [CIT(A)], APPEAL NO.CIT(A)-10/ITO-5(1)(1)/133/2015-16 DATED 27/03/2017 QUA CONFIRMATION OF CERTAIN ADDITION U/S 68 FOR RS.45.2 9 LACS. 2.1 FACTS LEADING TO THE SAME ARE THAT THE ASSESSEE BEING RESIDENT CORPORATE ENTITY ENGAGED AS DEALER IN METALS WAS ASSESSED IN SCRUTINY ASSESSMENT U/S 143(3) ON 24/03/2015 BY LD. INCOME TAX OFFICER-5(1)(1), MUMBAI [AO] WHEREIN THE INCOME OF THE ASSESSEE WAS ASSESSED AT RS.55.35 LACS AFTER CERTAIN ADDITIONS AS AGAINST RE TURNED INCOME OF RS.9.16 LACS E-FILED BY THE ASSESSEE ON 29/09/2012. 2.2 DURING ASSESSMENT PROCEEDINGS, UPON PERUSAL OF ANNUAL INFORMATION RETURN [AIR] , IT TRANSPIRED THAT THE ASSESSEE MADE CASH DEPOSITS AGGREGATING TO RS.45.29 LACS ON VARIOUS DA TES IN ONE OF THE BANK ACCOUNT MAINTAINED WITH KOTAK MAHINDRA BANK LIMITED. THE DETAILS OF THE DEPOSITS HAVE ALREADY BEEN EXTRACTED AT PARA-6.1 OF THE QUANTUM ASSESSMENT ORDER. ACCORDINGLY, THE ASSESSEE WAS REQ UIRED TO JUSTIFY THE SAME. THE ASSESSEE SUBMITTED THAT THE CASH DEPOSITS AND WITHDRAWALS WERE IN NORMAL COURSE OF BUSINESS. SINCE THE ASSESS EE COULD NOT EXPLAIN THE SOURCE THEREOF TO THE SATISFACTION OF LD. AO, T HE SAME WAS TREATED AS UNEXPLAINED CASH CREDIT U/S 68 AND ADDED TO THE INC OME OF THE ASSESSEE. 3. BEFORE LD. CIT(A), THE ASSESSEE EXPLAINED THAT T HE CASH DEPOSIT WAS SOURCED OUT OF EARLIER WITHDRAWALS, RECEIPTS FR OM PROPRIETARY CONCERNS OF THREE DIRECTORS & LOANS RECEIVED FROM 3 RELATIVES. THE DETAILS OF THE SAME HAS BEEN EXTRACTED AT PARA 4.2 OF THE IMPUGNED ORDER. HOWEVER, NOT CONVINCED WITH ASSESSEES EXPLANATION, THE LD. CIT(A) CONFIRMED THE STAND OF LD. AO, AGAINST WHICH THE AS SESSEE IS IN FURTHER APPEAL BEFORE US. ITA NO. 3422/MUM/2017 AESTEIRON STEELS PRIVATE LIMITED ASSESSMENT YEAR-2012-13 3 4. RIVAL CONTENTIONS HAVE BEEN HEARD AND PERUSED. U PON DUE CONSIDERATION, WE FIND THAT THE ASSESSEE IS A CORPO RATE ENTITY AND WAS REQUIRED TO MAINTAIN COMPREHENSIVE ACCOUNTS UNDER L AW AND WAS SUBJECTED TO AUDITS UNDER THE COMPANIES ACT AS WELL AS UNDER THE INCOME TAX ACT. THE TURNOVER OF THE ASSESSEE WAS MO RE THAN RS.13.86 CRORES. NOTHING ON RECORD SUGGEST THAT THE SAID BAN K ACCOUNT WAS UNDISCLOSED ACCOUNT. THE CASH BOOK FOR THE IMPUGNED AY HAS BEEN PLACED ON PAGE NUMBERS 5 TO 9 OF THE PAPER-BOOK. UPON PERUSAL OF THE SAME, WE FIND THAT OPENING AND CLOSING CASH BALANCE REFLECTED THEREIN TALLIES WITH THE CASH BALANCE REFLECTED IN THE BALANCE SHEET. ALL THESE FACTS FORTIFY THE STAND OF THE ASSESSEE. APPARENTLY , THE ISSUE HAS NOT BEEN APPRECIATED IN THE RIGHT PERSPECTIVE BY LOWER AUTHORITIES. THEREFORE, WITHOUT DELVING MUCH DEEPER INTO THE SAME, WE REMIT THE MATTER TO THE FILE OF LD. AO TO RE-APPRECIATE THE ASSESSEES SUBM ISSIONS IN THE CORRECT PERSPECTIVE AND RE-ADJUDICATE THE SAME AS PER LAW. THE ASSESSEE, IN TURN, IS DIRECTED TO DEMONSTRATE THE SOURCE OF CASH DEPOSIT IN THE SAID BANK ACCOUNT. 5. THE APPEAL STANDS ALLOWED FOR STATISTICAL PURPOS ES. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH DECEMBER, 2018 SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED :05/12/2018 SR.PS:-JAISY VARGHESE ITA NO. 3422/MUM/2017 AESTEIRON STEELS PRIVATE LIMITED ASSESSMENT YEAR-2012-13 4 ! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT 3. ( ( ) / THE CIT(A) 4. ( / CIT CONCERNED 5. )* #+ , + , / DR, ITAT, MUMBAI 6. *,-. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.