Awadh Crown Corks Pvt.Ltd., Lucknow V. Dy. Commissioner of Income Tax, Lucknow

ITA 345/LKW/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5683 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 06-02-2014
• Assessment Year: 2001-2002
• Appeal Filed On: 25-06-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Assessee Lawyers: ASHOK SETH F
• Keywords: Accommodation entries

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.345/LKW/2012 A.Y.:2001 - 2002 M/S AWADH CROWN CORKS PVT. LTD., A - 206, ADIL NAGAR, GANNE KA PURWA, SITAPUR ROAD, LUCKNOW. PAN:AACCA0234H VS. DY.C.I.T., RANGE - 1, LUCKNOW. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI ASHOK SETH, F.C.A. RESPONDENT BY SHRI ALOK MITRA, D.R. DATE OF HEARING 06/02/2014 DATE OF PRONOUNCEMENT 2 8 02/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDER OF LEARNED CIT ( A) - I, LUCKNOW DATED 07/03/2012 FOR ASSESSMENT YEAR 2001 - 2002. 2. THE ASSESSEE HAS RAISED AS MANY AS 9 GROUNDS BUT IN COURSE OF HEARING BEFORE US, IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT GROUND NO. 1,2,3,5,6 & 8 ARE NOT PRESSED AND GROUND NO. 9 IS GENERAL. ACCORDINGLY THESE GROUNDS ARE REJECTED AS NOT PRES SED. THE REMAINING GROUNDS BEING GROUND NO. 4 & 7 ARE REPRODUCED AS UNDER: 4. BECAUSE THE LD. CIT (APPEALS) - 1, LUCKNOW ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS . 5,00,000 / - MADE BY LD. ASSESSING OFFICER IN THE IMPUGNED ASSESSMENT ORDER DA TED 22/12/2008 ON ACCOUNT OF ALLEGED ACCOMMODATION ENTRY FROM M/S AAYUSHI STOCK BROKERS PVT LTD . 7. BECAUSE IN ABSENCE OF NOTICE UNDER SECTION 143(2) OF THE INCOME TAX ACT, 1961, THE ADDITION OF RS . 5,00,000/ - MADE 2 BY ASSESSING OFFICER ON ACCOUNT OF ALLEGED ACCOMMODATION ENTRY FROM M/S AAYUSHI STOCK BROKERS (P) LTD . IS ILLEGAL AND LIABLE TO BE DELETED AND WHOLE ASSESSMENT AND CONSEQUENT ASSESSMENT ORDER DATED 23/12/2008 IS LIABLE TO BE QUASHED. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE D ETAILS OF ENTIRE AMOUNT OF SHARE APPLICATION MONEY OF RS.65 LAC S , RECEIVED DURING THIS YEAR IS AVAILABLE ON PAGE NO. 13 OF THE PAPER BOOK, WHICH INCLUDES 5 COMPANIES BUT THERE IS NO COMPANY BY THE NAME OF M/S AAYUSHI STOCK BROKERS PVT. LTD. AND THEREFORE, THE ADDITION MADE BY THE ASSESSING OFFICER SHOULD BE DELETED. 4. THE LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND WE FIND THAT THE BALANCE SHEET IS AVAILABLE ON PAGE NO. 37 AND A S PER THE SAME, THE CLOSING BALANCE OF SHARE APPLICATION MONEY PENDING ALLOTMENT AS ON 31/03/2000 WAS RS.89.72 LAC AND IT HAD INCREASED TO RS.154.72 LAC AS ON 31/03/2001. HENCE, THERE IS INCREASE OF RS.65 LAC IN THE PRESENT YEAR. THE DETAILS OF THIS RECE IPT OF FRESH MONEY OF RS.65 LAC S DURING THE PRESENT YEAR IS AVAILABLE ON PAGE NO. 13 OF THE PAPER BOOK, WHICH INCLUDES FIVE COMPANIES AS PER THE DETAILS BELOW: (I) COMFORT BUILDERS PVT. LTD. 500,000.00 (II) SHREE PORTFOLIO & FINANCE PVT. LTD. 500,000. 00 (III) GURUKUL TECHNOLOGIES LTD. 500,000.00 (IV) SASA FOODS PVT. LTD. 500,000.00 (V) PRATIKAR FINLEASE PVT. LTD. 2,500,000.00 1,000,000.00 1,000,000.00 6,500,000.00 5.1 FROM THE ABOVE DETAILS OF THE SHARE APPLICATION MONEY RECEIVED, WE FIND THAT NAMES OF FIVE COMPANIES ARE GIVEN FROM WHOM RS. 45 LACS WERE RECEIVED AND IN THESE FIVE NAMES, THE NAME O F M/S AAYUSHI STOCK BROKERS PVT. LTD. IS NOT INCLUDED. BUT FOR RECEIPT OF THE BALANCE AMOUNT OF RS. 20 LACS, NO NAME IS PROVIDED BY THE ASSESSEE BUT THESE ARE TWO AMOUNTS OF RS. 10 LACS 3 EACH AND THE ADDITION MADE BY THE A.O. IS OF RS. 5 LACS ONLY. IT MAY BE THAT ON SAME DATE, TWO CHEQUES OF RS. 5 LACS EACH WERE RECEIVED AND THE ASSESSEE AS SHOWN COMPOSITE AMOUNT OF A DATE. THE ASSESSING OFFICER HAS MADE THE ADDITION IN RESPECT OF ALLEGED RECEIPT OF SHARE APPLICATION MONEY FROM M/S AAYUSHI STOCK BROKERS PVT. LTD. WE ALSO FIND THAT IT IS NOTED BY THE ASSESSING OFFICER ON PAGE NO. 2 THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS IN THE CASE OF M/S AAYUSHI STOCK BROKERS PVT. LTD. FOR ASSESSMENT YEAR 2002 - 2003, DIRECTOR OF THE COMPANY SHRI R. K. AGARWAL HAS ACCEPTED THAT ACCOMMODATION ENTRIES HAVE BEEN MADE. HENCE, IT APPEARS THAT THERE MAY BE SOME RECEIPT OF SHARE APPLICATION MONEY FROM THAT COMPANY IN FINANCIAL YEAR 2002 - 2003 AS WELL AS IN THE PRESENT YEAR ALSO. HENCE, WE FEEL THAT IN THE INTEREST OF JUSTICE, THE MATTER SHOULD GO TO THE A.O. FOR AFRESH DECISION. WE ORDER ACCORDI NGLY. THE A.O. SHOULD DECIDE THE ISSUE AFRESH AFTER OBTAINING FULL DETAILS ABOUT RECEIPT OF SHARE APPLICATION MONEY FROM THE ASSESSEE INCLUDING COPY OF SHARE APPLICATION FORM. HE SHOULD PASS NECESSARY ORDER AS PER LAW AFTER PROVIDING ADEQUATE OPPORTUNITY O F BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES . (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 8 /02/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR