M/s. RISHISHWAR CONSTRUCTION PRIVATE LIMITED, Ujjain V. THE ADDL.CIT RANGE-1, Ujjain

ITA 450/IND/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5632 (ITAT-INDORE)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-03-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 11-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Onus to prove

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO. 450/IND/2015 A.Y. : 2011-12. M/S.RISHIWAR CONSTRUCTION PVT.LTD., ADDL. CIT, RANGE I UJJAIN 65, SUDAMA NAGAR, VS UJJAIN APPELLANT RESPONDENT PAN NO. AADCR8687C APPELLANT BY : SHRI S.S.DESHPANDE, C. A. RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R PER D.T.GARASIA, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A), UJJAIN, DATED 24.02.2015 FOR THE ASSESSMEN T YEAR 2011- 12. 2. THE ASSESSEE HAS TAKEN FOLLOWING GROUND OF APPEAL : - DATE OF HEARING : 28.03.2016 DATE OF PRONOUNCEMENT : 28.03.2016 RISHIWAR CONSTRCUTION PRIVATE LIMITED VS. ADDL. CIT , RNAGE 1, UJJAIN I.T.A.NO. 450/IND/2015 A.Y. 2011-12 2 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN CONFIRMING ADDITION ON ACCO UNT OF UNEXPLAINED UNSECURED LOAN U/S 68 OF RS. 29,00,000/- WHEREAS, THE ASSESSEE SUBMITTED ALL RELEVANT DOCUMENTS BEFORE THE LD. AO AND LD. CIT(A) BEFORE PASSING SUCH ORDER. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY IS DERIVING INCOME FROM CIVIL CONSTRUCTION WORK. TH E RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 34,820/- WAS F ILED ON 30.11.2011. THE ASSESSEE HAS TAKEN THE LOAN FROM SO ME PARTIES, WHICH AMOUNTED TO RS. 29,00,000/-. THE AO DID NOT F IND FAVOUR WITH THE EXPLANATION OF THE ASSESSEE AND MADE THE A DDITION OF RS. 29,00,000/- ON ACCOUNT OF UNEXPLAINED UNSECURED LOA N U/S 68. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) CONFIRMED THE ADDITION OF RS. 29,00,000/- STATING T HAT THE ASSESSEE FAILED TO DISCHARGE THE BURDEN OF PROOF BY NOT ESTABLISHING THE GENUINENESS OF TRANSACTION AND CRE DITWORTHINESS OF THE PARTIES. 5. THE LD. AUTHORIZED REPRESENTATIVE CONTENDED THAT DU RING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS TAKEN THE LOAN FROM THE FOLLOWING PERSONS :- RISHIWAR CONSTRCUTION PRIVATE LIMITED VS. ADDL. CIT , RNAGE 1, UJJAIN I.T.A.NO. 450/IND/2015 A.Y. 2011-12 3 3 A) SMT. PREMLATA SHARMA RS. 3,50,000/- B) SHRI MAHENDRA SHARMA RS. 8,00,000/- C) M/S.GAURAV AGENCIES RS. 4,50,000/- D) SHRI RAMESHWAR PANCHAL RS. 4,00,000/- E) SHRI SAGARMAL JAIN RS. 9,00,000/- TOTAL RS. 29,00,000/- THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT TH E DETAILS REGARDING ADDRESS, PAN NOS. OF ALL THE CREDITORS WE RE SUBMITTED. DETAILED SUBMISSIONS REGARDING EACH CREDITOR WAS SU BMITTED BEFORE THE CIT(A). THE LD. AUTHORIZED REPRESENTATIV E FURTHER SUBMITTED THAT THE ASSESSEE SUBMITTED ALL THE RELEV ANT DOCUMENTS BEFORE THE LD. AO AND ALSO BEFORE THE LD. CIT(A), BUT NO PROPER OPPORTUNITY OF HEARING WAS GIVEN TO ASSES SEE. THE LD. AUTHORIZED REPRESENTATIVE CONTENDED THAT THE MATTER MAY BE SET ASIDE TO THE FILE OF AO AND THE ASSESSEE MAY BE GIV EN PROPER OPPORTUNITY OF HEARING. 6. THE LD. DR DID NOT OBJECT TO RESTORATION OF APPEAL. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE NECESSARY RECORDS. WE FIND THAT IN THIS CASE, THE ASSESSEE WAS NOT GIVEN PROPER HEARING. THEREFORE, WE ARE OF THE VIEW THAT THE ASSESSEE MUST BE GIVEN OPPORTUNITY OF HEARING AND, THEREFORE, WE RISHIWAR CONSTRCUTION PRIVATE LIMITED VS. ADDL. CIT , RNAGE 1, UJJAIN I.T.A.NO. 450/IND/2015 A.Y. 2011-12 4 4 SET ASIDE THE MATTER TO THE FILE OF A.O. WITH THE D IRECTION TO GIVE PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE AND D ECIDE THE CASE AFRESH. THE ASSESSEE SHALL COOPERATE TO THE AO AND EXPLAIN HIS CASE IN DETAIL. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 28 TH MARCH, 2016. SD/- (B.C.MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 28 TH MARCH, 2016. CPU*