ESHA NEWS MONITORING SERVICES P.LTD, MUMBAI V. ACIT 11(1), MUMBAI

ITA 3558/MUM/2013

• Counselvise Citation: 355819914 RSA 2013
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 06-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Assessee Lawyers: SUBODH L RATNAPARKHI
• Keywords: Opportunity of being heard
• Section: 143(3); 133(6)

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAJENDRA, ACCOUNTANT MEMBER ITA NO.3558/MUM/2013 ASSESSMENT YEAR:2008-09 ESHA NEWS MONITORING SERVICES PVT. LTD. 10 TH FLOOR, KURUSHALI COMMERCIAL COMP. ABOVE SHOPPERS STOP,CHEMBUR(WEST) MUMBAI - 400089 / VS. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-11(1) AAYAKAR BHAVAN, MUMBAI-400020 ( /ASSESSEE) ( / RR REVENUE) P.A. NO.AABCE7035P / ASSESSEE BY): SHRI SUBODH L. RATNAP ARKHI / REVENUE BY SHRI NEIL PHILIP - DR ! / DATE OF HEARING : 10 /02 /2015 ! ! /DATE OF ORDER 10/02/2015 ! / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) : THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 27/02/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI. THE FIRST GROUND RAISED BY THE ASSESSEE PERTAINS TO ADD ITION OF RS.9,28,224/-, MADE ON THE BASIS OF AIR INFORMATION . ESHA NEWS MONITORING SERVICES PVT. LTD . 2 2. THE CRUX OF ARGUMENT ADVANCED BY SHRI SUBODH L. RATNAPARKHI, LD. COUNSEL FOR THE ASSESSEE IS THAT T HE ASSESSEE NEITHER RENDERED ANY SERVICES NOR HAVING ANY BUSINE SS DEALING WITH THE ALLEGED PARTIES. ON THE OTHER HAND, LD. D R, SHRI NEIL PHILIP, DEFENDED THE CONCLUSION ARRIVED AT IN THE I MPUGNED ORDER. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF PROV IDING VIDEO CLIPS OF NEWS MONITORED FROM THE ELECTRONICS MEDIA, DECLARED LOSS OF RS.22,00,810/- IN ITS RETURN FILED 29/09/2008. THE ASSESSMENT WAS FRAMED U/S 143(3) R.W.S.144 OF THE I NCOME TAX ACT, 1961(HEREINAFTER THE ACT) AS THE ASSESSEE DID NOT FURNISH THE RELEVANT DETAILS. AS PER THE DEPARTMENT, THE AMOUN T OF RS.9,28,224/- WAS NOT RECONCILED BY THE ASSESSING O FFICER. BEFORE US, THE STAND OF THE ASSESSEE IS THAT THE AS SESSEE HAD NO CONNECTION WHATSOEVER WITH (A) M.J. RETAIL PVT. LTD . AND (B) WARNER BROTHERS PICTURES (INDIA) PVT. LTD. THE ASSE SSEE HAS ALSO FILED AFFIDAVIT DULY SWORN BY THE MANAGING DIRECTOR OF THE ASSESSEE COMPANY STATING THAT THE ASSESSEE IS NOT A WARE AS TO WHY THESE TWO COMPANIES, THE DEDUCTED TAX AT SOURCE IN THE NAME OF THE ASSESSEE COMPANY. IN VIEW OF THESE FAC TS, WE REMAND THIS ISSUE TO THE FILE OF THE ASSESSING OFFI CER TO EXAMINE THE CLAIM OF THE ASSESSEE AND THEN DECIDE IN ACCORD ANCE WITH LAW. THE ASSESSING OFFICER MAY EXAMINE BOTH THESE PARTIES WITH RESPECT TO DEDUCTION OF TAX AT SOURCE BY THEM. THE ASSESSEE BE GIVEN OPPORTUNITY OF BEING HEARD. THUS, THIS GROUN D OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ESHA NEWS MONITORING SERVICES PVT. LTD . 3 3. THE NEXT GROUND PERTAINS TO CONFIRMING THE ADDIT ION OF RS.50 LAKHS, BEING INCREASE IN SHARE PREMIUM. THE S TAND OF THE ASSESSEE IS THAT NECESSARY INFORMATION INCLUDING TH E IDENTITY OF THE CREDITOR ALONG WITH SUBSEQUENT TRANSACTION WITH THE CREDITOR WERE FILED BEFORE THE ASSESSING OFFICER, THUS, THE ADDITION WAS WRONGLY MADE. ON THE OTHER HAND, THE LD.DR, DEFEND ED THE CONFIRMATION OF ADDITION BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) BY SUBMITTING THAT NECESSARY INFORMATION WERE NOT FURNISHED BY THE ASSESSEE. 3.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASS ESSING OFFICER DISALLOWED RS.50 LAKH BEING INCREASE IN SHARE PREMI UM AS THE ASSESSEE COULD NOT PROVE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF TRANSACTIONS OF THE SHARE HOLDERS I. E. C.C. AVICON AVIATION CONSULTANCY SERVICES PVT. LTD. THE STAND O F THE ASSESSEE IS THAT BUSINESS NEVER TOOK OFF AND THE CONCERNED P ARTIES COULD NOT RESPOND TO THE NOTICE ISSUED U/S 133(6) OF THE ACT. BEFORE US, THE ASSESSEE FILED CONFIRMATION FROM THE SAID P ARTY. WITHOUT GOING INTO THE MERIT OF THE APPEAL, WE REMAND THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE. THE ASSESSING OFFICER IS ALSO AT LIBERTY TO EXAMINE THE GENUINENESS OF THE TRANSACTION/CREDITOR TO HIS SATI SFACTION AND THEN DECIDE IN ACCORDANCE WITH LAW. THE ASSESSEE B E GIVEN OPPORTUNITY OF BEING HEARD. THIS GROUND OF THE ASS ESSEE IS ALSO ALLOWED FOR STATISTICAL PURPOSES ONLY. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ESHA NEWS MONITORING SERVICES PVT. LTD . 4 THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES, AT THE CONCLUSION OF THE HEARING, ON 10/02/2015 . SD/- (RAJENDRA) SD/- (JOGINDER SINGH) ' # / ACCOUNTANT MEMBER $ # / JUDICIAL MEMBER '# MUMBAI; $' DATED : 10/02/201 5 F{X~{T? P.S/. .. ! %$&'( )(*& / COPY OF THE ORDER FORWARDED TO : 1. &' () / THE APPELLANT 2. *+() / THE RESPONDENT. 3. , , - ( &' ) / THE CIT, MUMBAI. 4. , , - / CIT(A)- , MUMBAI 5. /01 *2 , , &' ! &23 , '# / DR, ITAT, MUMBAI 6. 14 5 / GUARD FILE. ! / BY ORDER, +/' * //TRUE COPY// +/, - (DY./ASSTT. REGISTRAR) , '# / ITAT, MUMBAI