ACIT, Circle-1(1), Sambalpur, Sambalpur V. M/s. Shree Balaji Engicons Pvt. Ltd., Jharsuguda

ITA 375/CTK/2013

• Counselvise Citation: 37522114 RSA 2013
• Duration Of Justice: 2 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-10-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 27-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASIT KUMAR MOHAPATRA
• Assessee Lawyers: M K KEDIA
• Section: 131; 133(6)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK . . , & , BEFORE S/SHRI P.M.JAGTAP, ACCOUNTANT M EMBER & PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ' ./ ITA NO. 375/CTK/2013 ( # # # # $% $% $% $% / ASSESSMENT YEAR :2009-2010) ACIT - 1 ( 1), SAMBALPUR VS. M/S. BALAJI ENGICON PVT LTD., MAIN ROAD, BELPAHAR, JHARSUGUDA ' ./ & ' ./PAN/GIR NO. AAGCS 4292 P ( ' /APPELLANT ) .. ( ()' / RESPONDENT ) # , , , , /ASSESSEE BY : SHRI M.K.KEDIA $ , , , , /REVENUE BY : SHRI ASIT KUMAR MOHAPATRA #$- / DATE OF HEARING : 28 TH OCT. 2015 ./% /DATE OF PRONOUNCEMENT 30 TH OCT. 2015 0 0 0 0 / O R D E R PER PARTHA SARATHI CHAUDHURY, JM THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE LD CIT(A)- BERHAMPUR DATED 21.3.2013, WHEREBY HE DELETED THE ADDITION OF RS.10,05,00,000/- MADE BY THE ASSESSING OFFICER TO THE TOTAL INCOME O F THE ASSESSEE. 2. THE BRIEF FACTS OF THIS CASE ARE THAT THE ASSESS EE COMPANY DERIVES INCOME FROM EXECUTION OF CIVIL CONTRACT WORK, TRANSPORTATI ON AND EXCAVATION WORK. THE RETURN OF INCOME WAS FILED BY THE ASSESSEE ON 29.9. 2009 DECLARING A TOTAL INCOME OF RS.5,16,48,480/-. DURING THE COURSE OF ASSESSM ENT PROCEEDING, IT WAS FOUND THAT THE ASSESSEE COMPANY HAS RECEIVED SHARE APPLIC ATION MONEY OF RS 10,00,00,000/ - FROM M/S. IDEA SUPPLIERS PVT LTD., AND RS.5,00,000/- FROM M/S. PRACHI PLASTICS PVT LTD. IN ORDER TO ASCERTAIN TH E GENUINENESS OF SUCH CLAIM, THE ITA NO. 375/CTK/2013 ASSESSMENT YEAR :2009-2010 2 ASSESSEE WAS ASKED TO PRODUCE THE DETAIL LIST OF SH ARE HOLDERS WITH NAME AND COMPLETE ADDRESS. AFTER RECEIPT OF SUCH DETAILS FRO M THE ASSESSEE COMPANY, INFORMATIONS WERE SOUGHT U/S 133(6) OF THE INCOME TAX ACT, 1961 FROM THE RESPECTIVE SHARE HOLDERS OF THE COMPANY REGARDING A UTHENTICITY OF SUCH CLAIM. ALONG WITH THIS, A COMMISSION U/S 131 OF THE INCOME TAX ACT, 1961 WAS ALSO SENT TO THE ADIT (INV) UNIT 111(3) KOLKATA TO INVESTIGAT E ABOUT IDENTITY AND GENUINENESS OF SUCH COMPANIES WHO HAVE INVESTED IN THE SHARE CAPITAL OF M/S SHREE BALAJI ENGICON PVT. LTD. A REPORT WAS RECEIVE D FROM THE ADIT (INV) UNIT 111(3) KOLKATA IN WHICH HE HAS STATED THAT NOBODY A PPEARED AND NO SUBMISSION WAS GIVEN IN THE CASE OF M/S PRACHI PLASTIC PVT. LT D. AND M/S IDEA SUPPLIERS PVT. LTD., KOLKATA. ALSO AS PER THE INSPECTION REPORT, T HE ABOVE TWO COMPANIES COULD NOT BE LOCATED AT THE GIVEN ADDRESS IN KOLKATA. APART F ROM THIS THE LETTERS WHICH WERE ISSUED IN THIS CONNECTION FROM THE ASSESSING OFFICE R TO THE ABOVE TWO COMPANIES WERE RETURNED UNSERVED WITH THE POSTAL REMARK 'NOT KNOWN'. ON SUCH FACT, WHEN THE AO CONFRONTED TO THE ASSESSEE, IT WAS SUBMITTED BY THE ASSESSEE THAT ONLY A CHEQUE OF RS.10 CRORE WAS TAKEN FROM M/S. IDIA SUPP LIERS PVT LTD., TO IMPROVE THE CURRENT RATIO AND THE SAME CHEQUE HAS BEEN SUBSEQUE NTLY RETURNED BACK WITHOUT ENCASHING THE SAME. IT WAS SUBMITTED THAT THERE WA S IN FACT NO RECEIPT OF FUNDS FROM THE ABOVE CONCERN. SO FAR AS M/S. PRACHI PLAS TICS PVT LTD., IS CONCERNED, IT WAS SUBMITTED THAT THE SAME WAS RECEIVED ON 21.5.20 07 AND INCORRECTLY THE NAME WAS MENTIONED AS PRACHI PLASTICS WHEREAS THE CORREC T NAME IS BLUE VALLEY BANIJYA PVT LTD., THE AO DID NOT ACCEPT THIS CONTENTION OF THE ASSESSEE AND, ACCORDINGLY, ADDED THE ABOVE AMOUNT OF RS.10,05,00,000/- TO THE TOTAL INCOME OF THE ASSESSEE. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEA L BEFORE THE FIRST APPELLATE AUTHORITY. ITA NO. 375/CTK/2013 ASSESSMENT YEAR :2009-2010 3 3. BEFORE THE LD CIT(A), THE ASSESSEE SUBMITTED A W RITTEN SUBMISSION, INTER ALIA, SUBMITTING THAT THE AMOUNT OF RS.10,00,00,000/- WAS NEVER BEEN RECEIVED AND CREDITED INTO THE BANK ACCOUNT OF THE ASSESSEE. TH E CHEQUE OF RS.10 CRORE WAS RECEIVED BY THE ASSESSEE AND SUBSEQUENTLY, IT WAS R ETURNED BACK TO M/S. IDEA SUPPLIERS PVT LTD., AS REGARDS TO RS.5,00,000/- IT WAS SUBMITTED THAT DUE TO TYPOGRAPHICAL ERROR, THE NAME OF THE SHARE HOLDER W AS WRONGLY MENTIONED. IN VIEW OF THIS, THE MATTER WAS REMANDED BY THE LD CIT(A) T O THE AO CALLING FOR A REMAND REPORT. THE REMAND REPORT IS EXTRACTED BY THE LD C IT(A) IN THE IMPUGNED ORDER. THEREFORE, WE DO NOT FIND IT NECESSARY TO REITERATE THE SAME AGAIN. THEREAFTER, THE LD CIT(A) GAVE THE COPY OF THE REMAND REPORT TO THE ASSESSEE FOR COMMENTS. IN RESPONSE THERETO, THE ASSESSEE SUBMITTED A DETAILED SUBMISSION. ON PERUSAL OF THE ENTIRE SUBMISSIONS OF THE ASSESSEE AS WELL AS THE R EMAND REPORT, THE LD CIT(A) HELD THAT ACTUALLY NO MONEY HAD COME TO THE ASSESSEE DUR ING THE RELEVANT YEAR. THE ASSESSEE HAD RECEIVED A CHEQUE OF RS.10 CRORES IN H AND BUT THE SAME WAS NOT DEPOSITED IN THE BANK. LATER ON THE SAID CHEQUE WA S RETURNED BACK TO M/S. IDEA SUPPLIERS PVT LTD., LD CIT (A) ALSO HELD THAT THE AMOUNT OF RS.5 LAKHS DOES NOT RELATE TO THE IMPUGNED ASSESSMENT YEAR. LD CIT (A) ALSO HELD THAT NO OBSERVATION IS MADE ON MERITS ON THE CREDITWORTHINESS OF THESE PARTIES AND THE AO SHALL BE FREE TO EXAMINE THE RECEIPT OF RS.5 LAKHS AS WELL AS REC EIPT OF ANY MONEY FROM IDEA SUPPLIERS PVT LTD IN ANY YEAR DURING THE PROCEEDING S U/S.153A OF THE ACT. ACCORDINGLY, THE LD CIT(A) DELETED THE ADDITION MAD E BY THE AO. HENCE, THE REVENUE HAS FILED APPEAL BEFORE US. ITA NO. 375/CTK/2013 ASSESSMENT YEAR :2009-2010 4 4. AT THE TIME OF HEARING, LD D.R. RELIED ON THE OR DER OF THE AO WHEREAS LD A.R RELIED ON THE ORDER OF THE LD CIT(A) AS WELL AS VAR IOUS JUDICIAL PRONOUNCEMENT RELIED AT THE TIME OF FIRST APPELLATE PROCEEDINGS. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE RECORD OF THE CASE. LOOKING TO THE ENTIRETY OF THE FACTS AND CIR CUMSTANCES OF THE CASE, WE OBSERVE THAT A REMAND REPORT WAS CALLED FOR FROM TH E ASSESSING OFFICER, WHEREIN, THE AO HAS ADMITTED THAT AS PER EXAMINATION OF THE BANK ACCOUNTS OF THE ASSESSEE AND MORE PARTICULARLY OF THE IDEA SUPPLIERS PVT LTD , ACTUALLY NO MONEY HAS COME TO THE ASSESSEE DURING THE RELEVANT YEAR AND ONLY A CH EQUE WAS GIVEN BY THE IDEA SUPPLIERS PVT LTD., TO THE ASSESSEE, WHICH WAS LATE R RETURNED BACK WITHOUT BEING ENCASHED. SINCE NO MONEY WAS ADMITTEDLY RECEIVED B Y THE ASSESSEE, THEREFORE, THERE WAS NO JUSTIFICATION TO MAKE THE ADDITION U/S .68 OF THE ACT. SO FAR AS THE AMOUNT OF RS.5 LAKHS IS CONCERNED, THE SAME WAS ADM ITTEDLY RECEIVED ON 21.5.2007 AS MENTIONED IN THE ASSESSMENT ORDER ITSE LF AND HENCE, CANNOT BE ADDED U/S.68 OF THE ACT. IN VIEW OF THIS, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE LD CIT(A). ACCORDINGLY, WE UPHOLD THE SAME. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 30 /10/2 015 SD/- SD/- . . ,/P.M.JAGTAP , PARTHA SARATHI CHAUDHURY /ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK; #' DATED 30/10 /2015 B.K.PARIDA, SPS 2 22 2 ITA NO. 375/CTK/2013 ASSESSMENT YEAR :2009-2010 5 0 0 0 0 ( ( ( ( 4% 4% 4% 4% / COPY OF THE ORDER FORWARDED TO : 0# 0# 0# 0# / BY ORDER, SR. PRIVATE SECRETARY, , / ITAT, CUTTACK 1. THE APPELLANT :ACIT - 1 ( 1), SAMBALPUR 2. ()' / THE RESPONDENT. M/S. BALAJI ENGICON PVT LTD., MAIN ROAD, BELPAHAR, JHARSUGUDA 3. 5 ( ) / THE CIT(A),BERHAMPUR 4. 5 / CIT , SAMBALPUR 5. $6 (# , / DR, ITAT, CUTTACK 6. 7 8- / GUARD FILE. ) ( //TRUE COPY//