The ACIT- 1(1), Bhopal V. M/s Bhopal Financial Services Pvt. Ltd., Bhopal

ITA 353/IND/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4858 (ITAT-INDORE)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 23-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESH
• Keywords: Unexplained cash credit; Opportunity of being heard

Judgement Text

1 INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 353/IND/2013 A.Y. 2009-10 ACIT 1(1) BHOPAL :: APPELLANT VS M/S. BHOPAL FINANCIAL SERVICES P. LTD., BHOPAL PAN AABCB 4191 P :: RESPONDENT APPELLANT BY SHRI R.A. VERMA RESPONDENT BY SHRI S.S. DESHPANDE DATE OF HEARING 26.8.2013 DATE OF PRONOUNCEMENT 26.8.2013 O R D E R PER JOGINDER SINGH , JUDICIAL MEMBER THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 22.2.2013 OF THE LEARNED FIRST APPELLATE AUTHORITY. THE ONLY GROUND 2 RAISED IN THE APPEAL PERTAINS TO DELETING THE ADDIT ION OF RS. 2,17,57,208/- MADE ON ACCOUNT OF UNEXPLAINED CASH C REDIT. 2. DURING HEARING OF THIS APPEAL, THE CRUX OF ARGUM ENTS ADVANCED BY SHRI R.A. VERMA, LEARNED SENIOR DR, IS THAT CLEA RLY UNEXPLAINED CASH CREDITS WERE FOUND AND THE ASSESSEE DID NOT FU RNISH THE CONFIRMATION FROM THE CREDITORS, THEREFORE, THE IDE NTITY OF THE CREDITOR, CREDIT WORTHINESS OF THE CREDITOR AND GEN UINENESS OF THE TRANSACTION WERE NOT ESTABLISHED. THE REPLY OF THE ASSESSEE WAS ALSO FOUND TO BE VAGUE FOR WHICH OUR ATTENTION WAS INVIT ED TO THE OBSERVATION MADE IN THE ASSESSMENT ORDER. ON THE OT HER HAND, SHRI S.S. DESHPANDE, THE LEARNED COUNSEL FOR THE ASSESSE E, DEFENDED THE IMPUGNED ORDER BY CONTENDING THAT THE ASSESSEE COMP ANY DULY DISCLOSED CURRENT LIABILITY AND PROVISION OF RS.8,5 8,31,508/- IN SCHEDULE 7 OF THE BALANCE SHEET FILED ALONG WITH RE TURN WHICH INCLUDES OUTSTANDING LIABILITY OF RS.2,17,57,208/- OF M/S KASSA FINVEST PVT. LTD. 2.1 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN FI NANCE AND 3 INVESTMENT ACTIVITIES, DECLARED NIL INCOME IN ITS R ETURN. DURING THE ASSESSMENT PROCEEDINGS, THE LEARNED ASSESSING OFFIC ER ASKED THE ASSESSEE TO PRODUCE PROOF REGARDING IDENTITY, CREDI T WORTHINESS OF THE CREDITOR AND GENUINENESS OF THE TRANSACTIONS OF RS.2,17,57,208/- OF M/S KASSA FINVEST PVT. LTD. THE RE IS A FINDING IN THE ASSESSMENT ORDER THAT THE ASSESSEE FAILED TO PROVE THE REQUIREMENT OF THE ACT AND EVEN DID NOT FILE CONFIR MATION AND BANK ACCOUNT OF M/S KASSA FINVEST PVT. LTD. THE LEARNED COUNSEL FOR THE ASSESSEE, DURING ASSESSMENT STAGE, MERELY CLAIMED T HAT THE BOOKS OF THE ASSESSEE ARE AUDITED. HOWEVER, BEFORE THE L EARNED CIT(A) IT WAS CLAIMED THAT SUCH BOOKS WERE FURNISHED BEFORE T HE LEARNED ASSESSING OFFICER. WE FURTHER NOTE THAT IN THE LIST OF SUNDRY CREDITORS WHICH HAS BEEN REPRODUCED IN THE ASSESSME NT ORDER (PAGE 2) NO NAME IS MENTIONED LIKE BHASKAR MULTINET LIMIT ED FROM WHOM THE SHARE APPLICATION MONEY WAS CLAIMED TO BE RECEI VED DURING FINANCIAL YEAR 2005-06. IN VIEW OF THESE FACTS, WE ARE OF THE CONSIDERED OPINION THAT IT REQUIRES RE-EXAMINATION OF FACTS AT THE LEVEL OF THE LEARNED ASSESSING OFFICER. THE LEARNE D COUNSEL FOR THE ASSESSEE HAD ALSO NO OBJECTION IF THE MATTER IS REM ANDED BACK TO THE FILE OF THE LEARNED ASSESSING OFFICER FOR FRESH EXAMINATION. THE 4 LEARNED SENIOR DR ALSO HAD NO OBJECTION TO THE SAME . WE, THEREFORE, KEEPING IN VIEW THE TOTALITY OF FACTS AND IN THE IN TEREST OF JUSTICE, SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND DIREC T THE ASSESSING OFFICER TO EXAMINE THE FACTS AND THE CLAIM OF THE A SSESSEE AFRESH FOR WHICH DUE OPPORTUNITY OF BEING HEARD BE PROVIDED TO THE ASSESSEE. THE ASSESSEE IS ALSO AT LIBERTY TO FURNISH EVIDENCE , IF ANY, TO SUBSTANTIATE ITS CLAIM. FINALLY, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LEARNED COUNSEL OF BOTH THE SIDES AT THE CONCLUS ION OF THE HEARING ON 26.8.2013. SD SD (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 26.8.2013 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE DN/-2626 5