DCIT CEN CIR 3, THANE V. TEENA HOUSING FINANCE P.LTD, MUMBAI

ITA 3804/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9771 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM TIWARI
• Keywords: Unexplained cash credit; Capital receipt
• Section: 143(3); 153A; 68; 132

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 3804 /MUM/ 2017 (ASSESSMENT YEAR 20 07 - 08 ) ACIT CC - 3 ROOM NO. 12, A - WING 6 TH FLOOR, ASHAR IT PARK, ROAD NO. 16 - Z WAGLE INDUSTRIAL ESTATE, THANE W VS. M/S. T EENA HOUSING FINANCE PVT. LIMITED 432/434, RAHIM CHAMBERS, VIJAYWADI CHIRA BAZAR MUMBAI - 400 002. PAN : AABCT3656R ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI RAKESH JOSHI DEPARTMENT BY SHRI RAM TIWARI DATE OF HEARING 1 9 .9. 201 7 DATE OF PRONOU NCEMENT 19 . 9 . 201 7 O R D E R THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 30.3.2017 PASSED BY THE LEARNED CIT(A) - 11, PUNE AND IT RELATES TO A.Y. 2007 - 08. THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A) IN DELETIN G THE ADDITION OF ` 50 LAKHS RELATING TO SHARE CAPITAL ADDED BY THE ASSESSING OFFICER U/S. 68 OF THE ACT. 2. I HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE - COMPANY IS ENGAGED IN REAL ESTATE BUSINESS. IT FIELD RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 17.9.2007 AND ASSESSMENT THEREOF WAS COMPLETED U/S. 143(3) OF THE ACT. SUBSEQUENTLY, THE ASSESSEE WAS SUBJECTED TO THE SEARCH U/S. 132 OF THE ACT ON 12.9.2012 AND CONSEQUENT THERETO THE ASSESSING OFFICER PASSED THE IMPUGNED ASSES S MENT ORDE R U/S. 143(3) READ WITH SECTION 153A OF THE ACT. IN THE SAID ASSESSMENT THE ASSESSING OFFICER ASSESSED THE SHARE CAPITAL RECEIPTS OF ` 50 LAKHS AS UNEXPLAINED CASH CREDIT. TEENA HOUSING FINANCE P. LTD. 2 3. BEFORE THE LEARNED CIT(A), THE ASSESSEE SUBMITTED THAT THE IMPUGNED ASSESSMENT YEAR IS UNABATED YEAR AND HENCE ADDITION CAN BE MADE ONLY ON THE BASIS OF INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH. IT WAS SUBMITTED THAT THE SEARCH TEAM DID NOT FIND ANY INCRIMINATING MATERIAL RELATING TO IMPUGNED ADDITION OF ` 50 LAKHS AN D HENCE THE ASSESSING OFFICER COULD NOT HAVE MADE SAID ADDITION IN 153A PROCEEDINGS. LD CIT(A) WAS CONVINCED WITH THE CONTENTION OF THE ASSESSEE AND ACCORDINGLY DELETED THE ADDITION. AGGRIEVED THE REVENUE HAS FILED THIS APPEAL BEFORE US. 4. LEARNED DEPART MENTAL REPRESENTATIVE PLACED RELIANCE ON THE ORDER PASSED BY THE ASSESSING OFFICER. ON THE CONTRARY, LEARNED AR SUBMITTED THAT THE DECISION RENDERED BY THE LEARNED CIT(A) IS IN ACCORDANCE WITH THE DECISION RENDERED BY HON'BLE JURISDICTIONAL BOMBAY HIGH CO URT IN THE CASE OF CONTINENTAL WAREHOUSING CORPORATION (NHAVA SHIVA)LTD. (374 ITR 645 AND ACCORDINGLY HE SUBMITTED THAT THE ORDER PASSED BY THE LEARNED CIT(A) DOES NOT CALL FOR ANY INTERFERENCE. 5. HAVING HEARD THE RIVAL SUBMISSIONS, I AM OF THE VIEW THA T THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE DOES NOT CALL FOR ANY INTERFERENCE WITH THE DECISION RENDERED BY THE LEARNED CIT(A) IS IN ACCORDANCE WITH THE DECISION RENDERED BY HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CONTINENTAL WAREHOUS ING CORPORATION (NHAVA SHIVA)LTD. (SUPRA). ACCORDINGLY, I UPHOLD THE ORDER PASSED BY THE LEARNED CIT(A). 6. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 1 9 . 9 . 201 7. SD/ - (B.R.BASKA RAN) ACCOUNTANT MEMBER MUMBAI ; DATED : 1 9 / 9 / 20 1 7 COPY OF THE ORDER FORWARDED TO : TEENA HOUSING FINANCE P. LTD. 3 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI