ACIT, CORP CIR-2, COIMBATORE V. LAKSHANA CONSULTANTS & HOTELIERS PVT LTD, COIMBATORE

ITA 3503/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4133 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 26-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAILENDRA MAMIDI
• Keywords: Additional evidence
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , , ' BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.3503/CHNY/2018 /ASSESSMENT YEAR:2015-16 THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2, 63 RACE COURSE ROAD, COIMBATORE 641 018. VS. M/S.LAKSHANA CONSULTANTS & HOTELIERS PVT LTD ., 396,AVARAMPALYAM ROAD, NEW SIDDAPUDUR, COIMBATORE 641 044. [ PAN: AAACL 3895 P ] ( ) /APPELLANT) ( *+) /RESPONDENT) ) , / APPELLANT BY : MR.SAILENDRA MAMIDI,PCIT,DR *+) , /RESPONDENT BY : MR. N.VIJAY KUMAR,C.A , /DATE OF HEARING : 06.08.2019 , /DATE OF PRONOUNCEMENT : 19.08.2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, COIMBATORE DATED 11.10.2018 FOR ASSESSMENT YEAR 2015-16. ITA NO.3503/CHNY/2018 :- 2 -: 2. THE RESPONDENT, NAMELY LAKSHANA CONSULTANTS & H OTELLIERS PVT. LTD. IS A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE CO MPANIES ACT, 1956. IT IS ENGAGED IN THE BUSINESS OF RUNNING HOTELS AND CONSU LTANCY SERVICES. THE RETURN OF INCOME FOR THE AY 2015-16 WAS FILED ON 29 .09.2015 DISCLOSING TOTAL INCOME OF RS. 82,96,410/-. AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE ASSISTANT COMMISSIONER OF INCO ME TAX, CORPORATE CIRCLE-2, COIMBATORE (HEREINAFTER CALLED AO) VIDE ORDER DATED 30.12.2017 PASSED U/S. 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AT TOTAL INCOME OF RS.10,52,96,411/- AFTER MAKING ADDITION U /S.68 OF THE ACT ON ACCOUNT OF RECEIPT OF SHARE AMOUNT OF RS.9,70,00,00 0/- ON THE GROUND THAT THE ASSESSEE HAD FAILED TO PROVE THE GENUINENESS AND CR EDIT WORTHINESS OF THE INVESTORS. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE LD. CIT(A), ), WHO VIDE IMPUGNED ORDER DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION BASED ON THE INFORMATION FILED BEFORE HIM. BEING AG GRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 3. IT IS CONTENDED BY THE LD. SENIOR D.R THAT THE LD.CIT(A) HAS ACCEPTED NEW ADDITIONAL EVIDENCES IN VIOLATION OF PROVISIONS OF RULE 46A OF THE INCOME TAX RULES, 1962 AND ALLOWED THE APPEAL. THEREFORE, IT IS PRAYED THT THE MATTER HAS TO BE RESTORED TO THE FILE OF LD.CIT(A). 4. ON THE OTHER HAND, THE LD.AR RELIED ON THE ORDE R OF LD.CIT(A). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMITTEDLY, LD.CIT(A), CONSIDERING THE A DDITIONAL EVIDENCE FILED ITA NO.3503/CHNY/2018 :- 3 -: BEFORE HIM, GRANTED RELIEF TO THE ASSESSEE. THIS IS EVIDENT FROM READING OF PARA-7 OF THE C.I.T(A)S ORDER. THE VIOLATION OF PR OVISIONS OF RULE-46A IS MANIFEST AND THEREFORE, WE ARE OF THE OPINION THAT THE MATTER SHOULD BE REMITTED BACK TO THE FILE OF ASSESSING OFFICER FOR DENOVO ASSESSMENT IN ACCORDANCE WITH LAW AFTER AFFORDING DUE OPPORTUNITY OF BEING BEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 19 TH AUGUST, 2019 IN CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( ) ( INTURI RAMA RAO ) /ACCOUNTANT MEMBER /CHENNAI, 3 /DATED: 19 TH AUGUST, 2019. K S SUNDARAM , *45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. *+) /RESPONDENT 5. 5 * /DR 3. 7 ( ) /CIT(A) 6. /GF