UMANG HOUSING P. LTD, MUMBAI V. ITO 4(3)(3), MUMBAI

ITA 4683/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3883 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 08-05-2017
• Assessment Year: 2001-2002
• Appeal Filed On: 14-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIKRAM BATRA
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI BEFORE SHRI JASON P. BOAZ (AM) AND SHRI SANDEEP GOS AIN (JM) ITA NO. 4683 /MUM/2013 ASSESSMENT YEAR: 2001-02 M/S. UMANG HOUSING PVT. LTD. PLOT NO. 7, FLAT NO. 201, SHANGRILA KHANDELWAL, LAYOUT, EVERSHINE NAGAR, MALAD (WEST), MUMBAI- 400064. PAN : AAACU4581B VS. THE ITO - 4(3 ) ( 3 ), AAYAKAR BHAVAN, MUMBAI- 400020. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI. VIKRAM BATRA DATE OF HEARING: 17/02/2016 DATE OF PRONOUNCEMENT: 19/02/2016 O R D E R PER JASON P. BOAZ, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER OF THE CIT(APPEALS)- 8, MUMBAI DT. 25/03/2013 CONFIRMING THE LEVY OF PEN ALTY OF RS. 10,26,243/- U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT T HE ACT) FOR ASST. YEAR 2001-02. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOL LOWING GROUNDS:- 1) THE HONBLE COMMISSIONER OF INCOME TAX (APPEALS) (HEREINAFTER REFERRED AS CIT(A) HAS ERRED IN CONFIRMING THE OR DER OF LEARNED ASSESSING OFFICER (HEREINAFTER REFERRED AS A.O.) LEVYING PENALTY OF RS. 10,26,243/- ON THE ADDITION MADE OF RS. 25,94,8 00/- ON ACCOUNT OF UNEXPLAINED CASH CREDITS U/S 68 OF THE I NCOME TAX ACT, 2 ITA NO. 4683 /MUM/2013 ASSESSMENT YEAR: 2001-02 1961. IT IS SUBMITTED THAT SUCH CREDITS WERE CARRIE D FORWARD FROM EARLIER YEAR I.E. A.Y. 2000-2001 AND THE EARLIER AS SESSMENT HAS ALREADY BEEN COMPLETED U/S 143(3) R.W.S 147OF THE I NCOME TAX ACT, 1961 AND THEREFORE QUESTION OF LEVY OF PENALTY U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 IS UNJUSTIFIED. 2) YOUR APPELLANT CRAVES TO ADD, ALTER, OR AMEND AN Y OF THE GROUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING OF APPEAL. 3. INSPITE OF MANY OPPORTUNITIES BEING AFFORDED TO THE ASSESSEE NONE APPEARED ON BEHALF OF THE ASSESSEE. ON THE OCCASIONS ON WHICH T HE BENCH DID NOT FUNCTION, THE CASE HEARING WERE ADJOURNED THROUGH DISPLAY ON THE NOTICE BOARD. EVEN WHEN NOTICE WAS ISSUED TO THE ASSESSEE BY RPAD, THE SAME HAS RETUNED UNSERVED. EVEN TODAY I.E. 17/02/2016 WHEN THE CASE WAS CALLED NONE WAS PRESENT ON BEHALF OF THE ASSESSEE, BUT HOWEVER THE LD. DR WAS PRESENT FOR RE VENUE. IN THESE CIRCUMSTANCES, IT APPEARS THAT THE ASSESSEE WAS NOT SERIOUS IN PURSUING THIS APPEAL AND THEREFORE THIS APPEAL IS BEING DISPOSED OFF WITH THE ASSISTANCE OF THE LD. DR FOR REVENUE AND THE MATERIAL ON RECORD. 3.1 THE LD. CIT(A), IN THE IMPUGNED ORDER FOR ASST. YEAR 2001-02, HAS UPHELD THE LEVY OF PENALTY OF RS. 10,26,243/- U/S 271(1)(C) O F THE ACT ON THE UNDISCLOSED INCOME OF RS. 24,95,000/- HOLDING AS UNDER THE PARA S 2.3(A) AND 2.3(B) THEREOF:- 2.3(A) I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE. THE BALANCE SHEET OF THE APPELLANT IS SHOWING OPENING BALANCE O F RESERVE AND SURPLUS AT RS. NIL AND CLOSING BALANCE AT RS. 24,95 ,000/-. THE RELEVANT SCHEDULE OF RESERVE AND SURPLUS IS SCHEDUL E-II IN WHICH THE AMOUNT OF RS. 24,95,000/- HAS BEEN SHOWN AS SHA RE PREMIUM AMOUNT RECEIVED DURING THE YEAR. THUS, IT WAS FACT ON RECORD THAT THIS SHARE PREMIUM AMOUNT WAS RECEIVED BY THE APPEL LANT DURING 3 ITA NO. 4683 /MUM/2013 ASSESSMENT YEAR: 2001-02 THE YEAR ONLY. IN THE FACTS AND CIRCUMSTANCES, THE APPELLANT WAS REQUIRED TO PROVE THE NATURE AND SOURCE OF SUCH AMO UNT RECEIVED NON-COOPERATIVE. HOWEVER, AFTER REPEATED REQUEST, T HE APPELLANT FURNISH DETAILS THAT THE AMOUNTS WERE RECEIVED FROM 4 COMPANIES. PERUSAL OF THE BALANCE SHEET OF THOSE COMPANIES REV EALED THAT NO SUCH INVESTMENT WAS MADE BY THEM AS SHARE APPLICATI ON MONEY IN APPELLANT COMPANY. IN THE FACTS AND CIRCUMSTANCES, THE APPELLANT DURING ASSESSMENT PROCEEDINGS, FAILED TO PROVE THE GENUINENESS AND SOURCE OF RECEIPT OF SHARE PREMIUM AMOUNT RECEI VED DURING THE YEAR. IN THE FACTS AND CIRCUMSTANCES, THE ASSESSING OFFICER IN THE ASSESSMENT ORDER HAS CORRECTLY HELD THAT THE APPELL ANT HAD FILED INACCURATE PARTICULARS OF INCOME AND THEREBY CONCEA LED THE PARTICULARS OF INCOME. EVEN DURING THE APPELLATE PR OCEEDINGS, THE APPELLANT COULD NOT PROVE THE GENUINENESS OF THE TR ANSACTIONS RECEIVING SHARE APPLICATION MONEY DURING THE YEAR. 2.3(B) AS PER THE PROVISIONS OF SECTION 271(1) (C) OF THE ACT, THE PENALTY IS LEVIABLE IF THE ASSESSEE HAS CONCEALED T HE PARTICULARS OF INCOME OR FURNISH INACCURATE PARTICULARS OF SUCH IN COME. IN THE CASE UNDER CONSIDERATION, THE FACTS HAVE PROVED THA T THE APPELLANT CONCEALED THE PARTICULARS OF INCOME LEADING TO FURN ISHING OF INACCURATE PARTICULARS OF SUCH INCOME. THE EXPLANAT ION FURNISHED BY THE APPELLANT DURING THE ASSESSMENT AS WELL AS A PPELLATE PROCEEDINGS WERE NEITHER BONA-FIDE NOR SATISFACTORY . THE ASSESSING OFFICER WAS, THEREFORE, JUSTIFIED IN LEVYING PENALT Y U/S 271(1)(C). THUS, THE PENALTY LEVIED BY THE ASSESSING OFFICER I S UPHELD. 4. AFTER CAREFULLY CONSIDERING THE SUBMISSIONS OF T HE LD. DR FOR REVENUE, THE FINDING OF THE CIT(A) IN THE IMPUGNED ORDER(SUPRA) AND THE MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAS BEEN UNABLE PLACE ON RECORD MATERI AL EVIDENCE TO CONTROVERT THE 4 ITA NO. 4683 /MUM/2013 ASSESSMENT YEAR: 2001-02 FINDINGS OF THE AUTHORITIES BELOW. IN THE ABSENCE O F ANY SUCH EVIDENCE TO CONTROVERT THE FINDINGS OF THE LD. CIT(A), WE DO NOT FIND ANY REASON TO DEVIATE FROM OR INTERFERE WITH THE FINDINGS AS RECORDED BY THE LD. CIT(A) AND ACCORDINGLY CONFIRM HIS ORDER UPHOLDING THE LEVY OF PENALTY OF RS. 10,26,243/- U/ S. 271(1)(C) OF THE ACT FOR ASST. YEAR 2001-02 IN THE CASE ON HAND. 5. IN THE RESULT, THE ASSESSEES APPEAL FOR ASST. YEAR 2001-02 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY, 2016 SD/- SD/- ( SANDEEP GOSAIN ) (JASON P.BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 19/02/2016 / COPY OF THE ORDER FORWARDED TO : 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) , / ITAT, MUMBAI PRAMILA