M/s. Iconic Bituminous Pvt. Ltd., Indore V. The ITO-2(4), Indore

ITA 356/IND/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0113 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-03-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 12-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S AMBEDKAR
• Keywords: Unexplained cash credit
• Section: 143(3); 142(1); 68

Judgement Text

ICONIC BITUMINOUS PVT. LTD ITA NO. 356/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA. NO.356/IND/2017 ASSESSMENT YEAR 2012-13 REVENUE BY S HRI R.S. AMBEDKAR , SR.DR ASSESSEE BY S/SHRI MANJEET SACHDEVA & AVINASH GAUR, ADVOCATES DATE OF HEARING 2 5 .03 .2019 DATE OF PRONOUNCEMENT 01 .0 4 .2019 O R D E R PER MANISH BORAD. THE ABOVE CAPTIONED APPEAL IS FILED AT THE INSTANC E OF ASSESSEE PERTAINING TO ASSESSMENT YEAR 2012-13 AND IS DIRE CTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX (APPEALS)- I (IN SHORT LD.CIT(A)], INDORE DATED 24.03.2017 WHICH IS ARI SING OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(IN SHOR T THE ACT) DATED 20.03.2015 FRAMED BY ITO-2(4), INDORE. M/ S. ICONIC BITUMINOUS PVT. LTD, 2 ND FLOOR MITTAL CHAMBER, 42 JAORA COMPOUND, INDORE VS. INCOME TAX OFFICER 2 ( 4 ), INDORE ( APPELLANT ) (RESPONDENT ) PAN AAC CI0747F ICONIC BITUMINOUS PVT. LTD ITA NO. 356/IND/2017 2 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL; 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) ERRED IN CONFIRMING ADDITION OF RS.8,00,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDIT UNDER SECTION 68 OF THE INCOME TAX ACT. 2. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APP EALS) ERRED IN NOT APPRECIATING THE SUBMISSION OF THE ASSESSEE COMPANY . 3. THAT THE ASSESSEE COMPANY CRAVES LEAVE TO ADD, A LTER, AMEND AND/OR DELETE ANY OF THE GROUNDS OF APPEAL. 3. BRIEFLY STATED THAT AS CULLED OUT FROM THE RECO RDS ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN MA NUFACTURING AND TRADING OF BITUMEN EMULSION. E-RETURN OF INCOM E FILED ON 29.09.2012 DECLARING INCOME OF RS.4,85,470/-. THE CASE SELECTED FOR SCRUTINY FOLLOWED BY SERVING OF NOTICES U/S 14 3(2) AND 142(1) OF THE ACT. LD. A.O AFTER EXAMINING THE BOOKS OF ACCOU NTS ON CHECK BASIS AND DETAILS FILED BY THE ASSESSEE CONCLUDED T HE ASSESSMENT U/S 143(3) OF THE ACT ON 20.03.2015 MAKING VARIOUS ADDITIONS TOTALING TO RS.34,11,743/- WHICH INTER ALIA INCLUDE S THE ADDITION FOR UNEXPLAINED CASH CREDIT OF RS.28,00,000/-. AGGRIEV ED ASSESSEE PREFERRED APPEAL BEFORE LD. CIT(A) AND PARTLY SUCCE EDED. ICONIC BITUMINOUS PVT. LTD ITA NO. 356/IND/2017 3 4. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNA L RAISING SOLE GRIEVANCE FOR ADDITION OF RS.8,00,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDIT OF RS.8,00,000/- CONFIRMED BY LD. CIT(A ). 5. LD. COUNSEL FOR THE ASSESSEE REFERRING TO THE P APER BOOK AND WRITTEN SUBMISSIONS AND ALSO PLACING THE RELIANCE O N THE DECISION OF THE TRIBUNAL IN THE CASE OF AJIT & AJAY ESTATE & RE SORTS PVT. LTD, ITA NO.762 & 763/IND/2016 SUBMITTED THAT BOTH THE LOWER AUTHORITIES ERRED IN TREATING THE LOAN OF RS.8,00,000/- RECEIVE D FROM SHRI BABULAL PALIWAL AS UNEXPLAINED AND FAILED TO APPREC IATE THAT LOAN OF RS.2,50,000/- WAS RECEIVED IN THE EARLIER ASSESSMEN T YEAR WAS NOT QUESTIONED BY THE REVENUE AUTHORITIES AND IN THE YE AR UNDER APPEAL ALSO AGAINST THE AMOUNT TAKEN ON LOAN PART OF THE A MOUNT HAS BEEN REPAID DURING THE YEAR. FURTHER ALL NECESSARY EVID ENCES TO PROVE THE IDENTITY, GENUINENESS AND CREDITWORTHINESS HAVE BEE N FILED. 6. PER CONTRA DEPARTMENTAL REPRESENTATIVE VEHEMENTL Y ARGUED AND SUPPORTING THE ORDER OF LOWER AUTHORITIES. 7. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. ICONIC BITUMINOUS PVT. LTD ITA NO. 356/IND/2017 4 8. THE ASSESSEE HAS RAISED THREE GROUNDS OF APPEAL OUT OF WHICH GROUND NO. 2 & 3 ARE GENERAL IN NATURE AND THE SOLE ISSUE HAS BEEN RAISED IN GROUND NO.1 CHALLENGING THE FINDING OF LD . CIT(A) CONFIRMING THE ADDITION OF RS.8,00,000/- ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT AND RECEIVED AS LOAN FROM SHRI BABULAL PALIWAL. 9. THE ASSESSEE COMPANY HAS FURNISHED THE CONFIRMAT ION LETTER, COPY OF INCOME TAX RETURN AND BALANCE SHEET OF SHRI BABULAL PALIWAL ALONG WITH BANK STATEMENT IN ORDER TO PROVE THE IDE NTITY, GENUINENESS AND CREDITWORTHINESS. IT IS NOT DISPUT ED THAT LOAN HAS BEEN TAKEN THROUGH BANKING CHANNEL AND IN THE CONFI RMATION LETTER, DETAILS OF THE TRANSACTION ALONG WITH PERMANENT ACC OUNT NUMBER OF THE LOAN PROVIDER IS MENTIONED. THE ALLEGED CASH CR EDITOR HAS GIVEN LOAN TO ASSESSEE IN PAST ALSO AS THERE IS AN OPENIN G BALANCE OF RS.2,50,000/- AND AS PER THE DETAILS FILED BEFORE U S THE LOAN OF RS.2,50,000/- WAS TAKEN IN THE PRECEDING FINANCIAL YEAR. DURING THE YEAR UNDER APPEAL FRESH LOAN HAVE BEEN TAKEN OF RS.4,00,000/- EACH ON 16.05.2011 AND 11.11.2011 RESPECTIVELY. AN AMOUNT OF RS.2 LAKH HAS BEEN REPAID BACK ON 24.12.2011 WHICH JUSTIFIES THE ICONIC BITUMINOUS PVT. LTD ITA NO. 356/IND/2017 5 CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ALLEGED TRANSACTION ARE GENUINE. CREDITWORTHINESS OF THE CA SH CREDITOR STANDS PROVED FROM THE COPY OF INCOME TAX RETURN AN D BALANCE SHEET. COPY OF CAPITAL ACCOUNT AND BALANCE SHEET O F THE CASH CREDITOR SHRI BABULAL PALIWAL PLACED AT PAGE-5 OF T HE PAPER BOOK SHOWS THAT THERE IS AN OPENING CAPITAL OF RS.9,65,1 98/- AND AFTER THE ADJUSTMENT OF THE INCOME AND WITHDRAWAL DURING THE YEAR THE CLOSING CAPITAL BALANCE IS RS.11,00,438/-. IN THE BALANCE SHEET AGAINST THE CAPITAL OF RS.11,00,438/- AND LOAN FRO M SHRI PUNIT PALIWAL OF RS.40,000/- THERE STANDS INVESTED RS.8,5 0,000/- AS A LOAN TO THE ASSESSEE COMPANY. IT ITSELF SHOWS THAT THERE WAS SUFFICIENT FUND WITH SHRI BABULAL PALIWAL TO PROVID E THE LOAN TO ASSESSEE. INTEREST INCOME EARNED ON THE LOAN HAS B EEN DULY OFFERED TO TAX BY THE CASH CREDITORS. 10. IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE C ASE WE ARE SATISFIED WITH THE IDENTITY, GENUINENESS AND CREDI TWORTHINESS OF THE UNSECURED LOAN OF RS.8,00,000/- TAKEN FROM SHRI BAB ULAL PALIWAL AND THEREFORE FIND NO JUSTIFICATION IN THE FINDING OF BOTH THE LOWER AUTHORITIES FOR MAKING THE ADDITION U/S 68 OF THE A CT FOR ICONIC BITUMINOUS PVT. LTD ITA NO. 356/IND/2017 6 UNEXPLAINED CASH CREDIT. WE ACCORDINGLY DELETE THE ADDITION OF RS.8,00,000/- U/S 68 OF THE ACT AND ALLOW GROUND NO .1 RAISED BY THE ASSESSEE. GROUND NO.2 & 3 ARE GENERAL IN NATURE WHICH NEEDS NO ADJUDICATION. 11. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 01.04.2 019. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 01 APRIL, 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE