M/s. Bombay Tablet Mfg. Co. Pvt. Ltd., Mumbai. V. DCIT, Circle-1(1)(1), Ahmedabad

ITA 384/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4134 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 13-02-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 16-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: S K SADHWANI
• Keywords: Unexplained cash credit; Bogus Share capital; Opportunity of cross examination; Accommodation entries; Bogus loan; Reason to believe
• Section: 13; 147; 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER) ITA. NO: 384/AHD/2018 (ASSESSMENT YEAR: 2009-10) M/S. BOMBAY TABLET MFG. CO. PVT. LTD. A/304, SHIMLA HOUSE, 51/B, JAGMOHANDAS MARG, MALBAR HILL MUMBAI V/S DCIT, CIRCLE-1(1)(1), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AABCB 2519H APPELLANT BY : SHRI S.K. SADHWANI, C.A. RESPONDENT BY : SHRI L.P. JAIN, SR. D.R. ( )/ ORDER DATE OF HEARING : 13 -02-202 0 DATE OF PRONOUNCEMENT : 19 -02-2020 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. CIT(A)-1, AHMEDABAD DATED 22.12.2017 PERTAINING TO A.Y. 2009-10 AND FOLLOWING GROUNDS HAVE BEEN TAKEN: ITA NO. 384/ AHD/2018 . A.Y. 2009-1 0 2 1. THE LD. CIT[A] IS UNJUSTIFIED AND HAS ERRED IN L AW & FACT BY CONFIRMING THE ADDITION OF RS. 10.00 LACS MADE BY AO, FOR LOAN TAK EN BY APPELLANT FROM TRIANGULAR INFOCOM LTD. THROUGH BANKING CHANNELS; A) TREATING SAME AS BOGUS LOAN AND UNEXPLAINED CASH CREDIT U/S. 68 OF THE I,T. ACT, BASED ON SUSPICION, WITHOUT GIVING ANY FINDING /MATERIAL/EVIDENCE OR PROVIDING OPPORTUNITY OF CROSS EXAMINATION; B) THE LD. AO HAS NOT DEALT WITH OBJECTIONS OF THE COMPANY TO THE ISSUANCE OF NOTICE U/S. 148 PROPOSING RE-ASSESSMENT, BASED ON T HE MATERIAL GATHERED FROM THIRD PARTY, WHICH HAS NO NEXUS TO THE APPELLANT; C) THE SATISFACTION RECORDED FOR RE-OPENING THE AS SESSMENT IS UNDATED & RECORDED BY PREDECESSOR AO, FOUNDED ON THE LETTER R ECEIVED FROM PR. DIT(LNV.), AHMEDABAD. 2. THE APPELLANT CRAVES A LEAVE TO ADD, AMEND, ALTE R, EDIT, DELETE, MODIFY OR CHANGE ALL OR ANY OF THE GROUNDS OF APPEAL AT THE T IME OF OR BEFORE THE HEARING OF THE APPEAL. 2. FACTS OF THE CASE ARE THAT THE INVESTIGATION WING O F THE REVENUE FORWARDED THE INFORMATION THAT A SEARCH U/S.132 OF THE I.T. ACT W AS CONDUCTED IN THE CASE OF SHRI PRAVIN KUMAR JAIN. THE SEARCH ACTION RESULTED IN COLLECTION OF EVIDENCE AND OTHER FINDINGS WHICH CONCLUSIVELY PROVED THAT S HRI PRAVIN KUMAR JAIN IS ENGAGED IN PROVIDING ACCOMMODATION ENTRIES OF VARIO US NATURES LIKE UNSECURED LOANS, BOGUS SHARE APPLICATION/CAPITAL AND BOGUS SA LES AND PURCHASES TO THE BENEFICIARIES SPREAD THROUGHOUT INDIA. M/S. BOMBAY TABLETS MANUFACTURING CO. PVT. LTD. IS ENGAGED IN UNEXPLAINED TRANSACTION WITH TRIANGULAR INFOCOM LTD - A BOGUS CONCERN OPERATED BY SHRI PRAVIN KUMAR JAIN. ON THE BASIS OF ABOVE MENTIONED FACT, I HAVE REASON TO BELIEVE THAT THERE IS AN ESCAPEMENT OF INCOME MORE THAN RS. 1.00 LAC IN THE CASE OF THE AB OVE ASSESSEE AND THE CASE IS THEREFORE, REQUIRED TO BE REOPENED U/S. 147 OF THE IT ACT BY WAY OF ISSUING NOTICE U/S. 148 OF THE IT ACT.' 3. THEREAFTER ON THE BASIS OF THE INFORMATION RECEIVED FROM THE INVESTIGATION WING, LD. A.O. ISSUED A NOTICE TO THE ASSESSEE WHER EIN ASSESSEE STATED THAT IT HAS NOT TAKEN ANY ACCOMMODATION ENTRY RATHER HE HAS TAK EN LOAN OF RS. 10 LACS WAS ITA NO. 384/ AHD/2018 . A.Y. 2009-1 0 3 TAKEN FROM TRIANGULAR INFOCOM LTD. BUT LOWER AUTHOR ITIES WERE NOT AGREED WITH THE CONTENTION OF THE ASSESSEE AND MADE ADDITION O F RS. 10 LACS MADE AND CONFIRMED BY THE LD. CIT(A). 4. NOW ASSESSEE HAS COME BEFORE US AND STATED THAT THE ASSESSEE COMPANY HAS AVAILED LOAN OF RS. 10 LACS FROM TRIANGULAR INFOCOM LTD. ON 13.03.2009 THROUGH BANKING CHANNEL AND IN SUPPORT OF ITS CONTE NTION, ASSESSEE FILED COPY OF LEDGER ACCOUNT, COPIES OF BANK STATEMENT AND COP IES OF ANNUAL REPORT BALANCE SHEET AND PROFIT AND LOSS ACCOUNT WITH ALL SCHEDULE AND ANNEXURE FOR ASSESSMENT YEAR 2009-10 WITH COPY OF PAN CARD AND S AME ARE PART OF PAPER BOOK AT PAGE NO. 29 & 30. AND THEREAFTER LOAN WAS R EPAID THROUGH THE BANKING CHANNEL ON 23.02.2011 AND DETAILS HAVE BEEN SUBMITT ED BEFORE THE LOWER AUTHORITIES AND SAME ARE PART OF PAPER BOOK. 5. THUS, IN OUR CONSIDERED OPINION, ASSESSEE HAS DISCH ARGED ITS ONUS AND SUBMITTED ALL THE RELEVANT PROOF SUCH AS DETAILS OF LOAN VIA THROUGH BANKING CHANNELS TO THE LOWER AUTHORITIES AND IN SUCH CASE ADDITION CANNOT BE SUSTAINED. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED. . ORDER PRONOUNCED IN OPEN COURT ON 19 - 02- 2020 SD/- SD/- (AMARJIT SINGH) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 19/02/2020 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT.