KYAN RESORTS AND CLUBS PRIVATE LIMITED, MUMBAI V. PRINCIPAL COMMISSIONER OF INCOME TAX - 14, MUMBAI

ITA 3585/MUM/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4255 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2013-2014
• Appeal Filed On: 24-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B SRINIVAS LD
• Section: 68; 263; 2

Judgement Text

1 ITA NO.3585/MUM/2018 KYAN RESORTS AND CLUBS PVT.LTD. ASSESSMENT YEAR-2013-14 IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.3585/MUM/2018 ( / ASSESSMENT YEAR: 2013-14) KYAN RESORTS AND CLUBS PRIVATE LIMITED OFFICE NO.404, MANRATNA BUSINESS PARK JUNCTION OF TILAK ROAD AND DERASAR LANE OPP. FOOD SPOT, GHATKOPAR-WEST MUMBAI-400 051 / VS. PR . COMMIS SI ONER OF INCOME TAX - 14 ROOM NO.469, AAYKAR BHAVAN MUMBAI-400 020. '# ! ./ ! ./PAN/GIR NO. AAECK-2903-P ( /APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : B. SRINIVAS- LD.CIT- DR / DATE OF HEARING : 07/03/2019 / DATE OF PRONOUNCEMENT : 13/03/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER):- 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2013-14 CONTEST THE INVOCATION OF JURIS DICTION U/S 263 BY LD. 2 ITA NO.3585/MUM/2018 KYAN RESORTS AND CLUBS PVT.LTD. ASSESSMENT YEAR-2013-14 PRINCIPAL COMMISSIONER OF INCOME-TAX -14, MUMBAI, [ PR. CIT] VIDE ORDER DATED 26/03/2018. NONE HAS APPEARED FOR ASSESSEE AN D NO VALID ADJOURNMENT APPLICATION IS ON RECORD. THE PERUSAL O F ORDER SHEET ENTRIES REVEALS THAT THE ASSESSEE HAS REMAINED NEGLIGENT IN ATTENDING THE PROCEEDINGS ON MORE THAN ONE OCCASION. LEFT WITH NO OPTION, WE PROCEED TO DISPOSE-OFF THE SAME ON THE BASIS OF MATERIAL ON RE CORD AND AFTER HEARING LD. CIT-DR WHO JUSTIFIED THE PROCEEDINGS U/S 263 ON FACTUAL MATRIX. 2. FACTS ON RECORD REVEAL THAT THE ASSESSEE BEING RESIDENT CORPORATE ENTITY WAS ASSESSED FOR IMPUGNED AY U/S 143 (3) ON 31/03/2 016 WHEREIN THE ASSESSEE WAS SADDLED WITH CERTAIN ADDITIONS U/S 68. 3. SUBSEQUENTLY, THE AFORESAID QUANTUM ASSESSMENT O RDER WAS SUBJECTED TO REVISIONAL PROCEEDINGS U/S 263 BY LD. PR.CIT WHEREIN IT WAS OBSERVED THAT ALTHOUGH THE ADDITION U/S 68 WAS MADE BY LD. AO, HOWEVER, CORRESPONDING INTEREST AGAINST THE SAME AS CLAIMED BY THE ASSESSEE HAS REMAINED TO BE DISALLOWED. THEREFORE, THE ORDER WAS TERMED AS ERRONEOUS AS WELL AS PREJUDICIAL TO THE INTEREST OF THE REVEN UE TO THAT EXTENT. ACCORDINGLY, LD. AO WAS DIRECTED TO DETERMINE THE I NTEREST COMPONENT ON THESE LOANS AND ADVANCES AND DISALLOW THE SAME AS P ER LAW. AGGRIEVED, BY THE AFORESAID PROCEEDINGS, THE ASSESSEE IS IN FURTH ER APPEAL BEFORE US. 4. UPON CAREFUL CONSIDERATION OF FACTUAL MATRIX, TH E BENCH FORMED AN OPINION THAT THE JURISDICTION U/S 263 AS EXERCISED BY LD. PR.CIT WAS PERFECTLY VALID SINCE ONCE THE LOANS WERE ADDED AS UNEXPLAINE D CASH CREDIT U/S 68, CORRESPONDING INTEREST AGAINST THE SAME WAS LIABLE TO BE DISALLOWED. THE FAILURE TO DISALLOW THE SAME HAS RIGHTLY CALLED FOR JURISDICTION U/S 263. 3 ITA NO.3585/MUM/2018 KYAN RESORTS AND CLUBS PVT.LTD. ASSESSMENT YEAR-2013-14 5. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13TH MARCH, 2 019. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 13/03/2019 SR.PS:-JAISY VARGHESE ! / COPY OF THE ORDER FORWARDED TO : 1. #' / THE APPELLANT 2. ()#' / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. *+(, , , , / DR, ITAT, MUMBAI 6. +./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI