M/s Saikrupa Finlease Pvt. Ltd., Indore V. The ACIT 3(1), Bhopal

ITA 400/IND/2011

• Counselvise Citation: 40022714 RSA 2011
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 28-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Keywords: Principle of natural justice; Additional evidence
• Section: 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 400/IND/2011 A.Y. 2006-07 SAIKRUPA FINLEASE PVT. LTD. BHOPAL PAN AACCS2245J :: APPELLANT VS ASSISTANT COMMISSIONER OF INCOME TAX 3(1) BHOPAL :: RESPONDENT APPELLANT BY SHRI HITESH CHIMNANI RESPONDENT BY SHRI R.A.VERMA DATE OF HEARING 4.09.2012 DATE OF PRONOUNCEMENT 10.09.2012 O R D E R PER JOGINDER SINGH, JUDICIAL MEMBER THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DATED 21 ST OCTOBER, 2011 PASSED BY THE LEARNED FIRST 2 APPELLATE AUTHORITY, BHOPAL ON THE GROUND THAT THE LEARNED CIT(A) IS NOT JUSTIFIED IN NOT ACCEPTING TH E REQUEST OF ADMISSION OF ADDITIONAL EVIDENCE FILED B EFORE HIM AND FURTHER ERRED IN CONFIRMING THE ADDITION U/ S 68 OF RS. 38 LACS ON ACCOUNT OF SHARE APPLICATION MONE Y AND ADDITION OF RS. 6 LACS ON ACCOUNT OF UNSECURED LOAN . 2. WE HAVE HEARD SHRI HITESH CHIMNANI, LEARNED COUNSEL FOR THE ASSESSEE AND SHRI R.A. VERMA, LEARN ED SR. DEPARTMENTAL REPRESENTATIVE. THE CRUX OF ARGUM ENTS ON BEHALF OF THE ASSESSEE IS THAT NECESSARY DOCUMEN TS COULD BE FILED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER ON 31.12.2008 AND BY THE TIME THE ASSESSMEN T ORDER WAS PASSED ON 29.12.2008 AS SUFFICIENT TIME W AS NOT GRANTED DURING THE ASSESSMENT STAGE. ULTIMATELY , THESE EVIDENCES WERE FILED BEFORE THE LEARNED CIT(A ), DURING FIRST APPELLATE STAGE. THE LEARNED COUNSEL F OR THE ASSESSEE PLACED RELIANCE ON THE DECISION IN CIT VS. SIYA DAWOOD BOHRA JAMAT; 170 TAXMAN 293 (MP) AND 3 CIT VS. K. RAVINDRANATHAN NAIR; 131 TAXMAN 743 (KER ). ON THE OTHER HAND, THE LEARNED SENIOR DR, DEFENDED THE IMPUGNED ORDER BY SUBMITTING THAT SUFFICIENT TIME W AS GRANTED TO THE ASSESSEE AND THE EVIDENCES WERE DELIBERATELY NOT FILED BEFORE THE ASSESSING OFFICER . RELIANCE WAS PLACED UPON THE DECISIONS IN THE CASE OF CIT VS. JAIPUR UDHYOG LIMITED; 227 ITR 345 (RAJ), N.B. SURTI FAMILY TRUST VS. CIT; 288 ITR 523 (GUJ) AND CIT VS. RANJIT KUMAR CHOUDHURY; 288 ITR 179 (GAU). 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACT S, IN BRIEF, ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSI NESS OF FINANCING, FOLLOWING MERCANTILE SYSTEM OF ACCOUNTIN G, DECLARED INCOME OF RS.4,38,754/- IN ITS RETURN FILE D ON 29 TH NOVEMBER, 2006. IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE RECEIVED SHARE APPLICATIO N MONEY OF RS.38 LACS FROM SWAPAN LOK VYAPAR PVT. LTD . AND UNSECURED LOAN OF RS.6 LACS FROM M/S G.S. 4 RESOURCES. THE ASSESSING OFFICER RAISED CERTAIN QU ERIES AND ASKED THE ASSESSEE TO FURSNISH CERTAIN DETAILS AS MENTIONED IN THE ASSESSMENT ORDER. AS PER THE REVE NUE, THE NECESSARY DETAILS LIKE BALANCE SHEET, PROFIT AN D LOSS ACCOUNT AND COMPUTATION OF INCOME WERE NOT FURNISHE D BY THE ASSESSEE ALONG WITH OTHER DOCUMENTS WITH REG ARD TO SWAPAN LOK VYAPAR PVT. LTD. FOR G.S. RESOURCES, NO DETAILS WERE FURNISHED. IN THE ABSENCE OF DISCHARG ING THE ONUS BY THE ASSESSEE, ADDITIONS U/S 68 OF THE ACT W ERE MADE. 4. BEFORE THE LEARNED CIT(A) THE ASSESSEE FURNISHED FOLLOWING DOCUMENTS :- A. M/S SWAPAN LOK VYAPAR P LTD. (A) AUDITED FINANCIAL STATEMENTS FOR THEF.Y. 2005-06 (B) CONFIRMATION OF ACCOUNT (C) COPY OF BANK STATEMENTS OF THE APPELLANT REFLECTING RECEIPT OF SHARE APPLICATION MONEY BY CHEQUES. B. M/S G.S. RESOURCES A. COPY OF PAN CARD BEARING NO. AACFG7288G B. CONFIRMATION LETTER 5 C. COPY OF INCOME TAX RETURN FILED BEFORE THE LD. I TO-1(2), RAIPUR ON 31.8.2006 ALONGWITH COMPUTATION OF TOTAL INCOME FOR THE A.Y. 2006-07. D. COPY OF INTIMATION U/S 143(1) DATED 10.3.2007 PA SSED BY THE LD. ITO-1(2) RAIPUR FOR THE A.Y. 2006-07. E. COPY OF BALANCE SHEET, PROFIT & LOSS ACCOUNT AND RELEVANT SCHEDULE FOR THEF.Y. 2005-06. F. COPY OF BANK STATEMENT OF THE APPELLANT REFLECTI NG RECEIPT OF UNSECURED LOAN BY CHEQUE. G. DETAILS OF INTEREST RECEIVED AND TDS DURING FY 2005-06 BY M/S GS RESOURCES, RAIPUR ALONGWITH TDS CERTIFICATES AND TDS CHALLAN AS ISSUED BY THE APPELLANT COMPANY TO M /S GS RESOURCES. 4.1 THE LEARNED CIT(A) DID NOT ADMIT THE ADDITIONAL EVIDENCES FILED BEFORE HIM ON THE PLEA THAT SINCE T HESE DOCUMENTS WERE NOT FILED BEFORE THE ASSESSING OFFIC ER, DURING THE ASSESSMENT PROCEEDINGS, THEREFORE, THE ADDITION WAS RIGHTLY MADE. WE FURTHER FIND THAT THE LEARNED CIT(A) NEITHER SOUGHT REMAND REPORT FROM TH E ASSESSING OFFICER NOR DECIDED THE ISSUE ON MERIT, THEREFORE, KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE THAT NO PERSON SHOULD BE CONDEMNED UNHEARD, THIS APPEAL IS REMANDED BACK TO THE FILE OF THE LEARNED ASSESSING OFFICER FOR FRESH ADJUDICATION IN ACCORDA NCE WITH LAW AFTER CONSIDERING THE DOCUMENTS FILED BEFO RE THE LEARNED CIT(A). THE ASSESSEE BE PROVIDED DUE OPPORT UNITY 6 BEFORE ADJUDICATION. THE LEARNED ASSESSING OFFICER IS ALSO EXPECTED TO EXAMINE THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING 31 ST MARCH, 2006 OF SWAPAN LOK VYAPAR PVT. LTD. AND ALSO OF M/S G.S. RESOURCES OF THE RELEVANT PERIOD AND ALSO THEIR FINANCIAL POSITION DURING EAR LIER ASSESSMENT YEAR ALONG WITH THE IDENTITY, GENUINENES S AND CREDIT WORTHINESS OF BOTH THE FIRMS ALONG WITH OTHER ASPECTS. THE CASES RELIED UPON BY BOTH THE SIDES MA Y ALSO BE CONSIDERED ALONG WITH OTHERS BY THE LEARNED ASSESSING OFFICER. FINALLY, THE APPEAL IS ALLOWED FOR STATISTICAL PUR POSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 10 TH SEPTEMBER, 2012. SD SD (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10 TH SEPTEMBER, 2012 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE DN/-10.10 7