Sri.C.Muraleedharan, Trivandrum V. The ACIT, Trivandrum

ITA 469/COCH/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4412 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 14-09-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Income from undisclosed sources

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI , AM & GEORGE GEORGE K., JM I.T.A. NO.469 /COCH/2015 ASSESSMENT YEAR : 2010 - 11 SHRI C. MURALEEDHARAN, PROPRIETOR, M/S. MURALEE & ASSOCIATES, TC NO.15/514, SANDHYA 1/17, UDARASIROMANI ROAD, VELLYAMBALAM, TRIVANDRUM-10. [PAN:ABYPC 3793R] VS. THE ASSISTANT COMMI SSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, TRIVANDRUM. (ASSESSEE - APPELLANT) (REVENUE - RESPONDENT) A SSESSEE BY SHRI T.M. SREEDHARAN, SR. ADV. REVENUE BY SHRI M.V. RUDRAN, ADCIT, S R. DR D ATE OF HEARING 19 / 0 3 /2018 DATE OF PRONOUNCEM ENT 19 / 0 3 /2018 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)- IV, KOCHI DATED 30/06/2015 AND PERTAINS TO ASSESSME NT YEAR 2010-11. 2. THE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS WITH REGARD TO ADDITION OF RS. 44,64,200/-. I.T.A. NO.469/C/2015 2 3. THE FACTS OF THE ISSUE ARE THAT IN THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD GIV EN UNSECURED LOAN OF RS.64,86,079/-- TO A COMPANY, NAMELY RAJADHANI VIL AS AND PROPERTY DEVELOPERS PVT. LTD. WHEREIN THE PRESENT ASSESSEE IS THE MANAG ING DIRECTOR. WHEN THIS WAS QUESTIONED BY THE ASSESSING OFFICER, THE ASSESSEE G AVE A REPLY THAT ORIGINALLY THE FOLLOWING PERSONS HAD GIVEN ADVANCES TO THE ASSESSE E: (I) SHRI K.V.G. NAIR RS.19,79,000/ - (II) SHRI SUNNY MATHEW RS. 75,000/- (III) SHRI SURESH R S. 1,60,200/- (IV) SHRI MOHAMMED AZEEM RS.22,50,000 /- RS.44,64,200/- 4. THESE AMOUNTS HAVE BEEN SHOWN BY RAJADHANI VILA S AND PROPERTY DEVELOPERS PVT. LTD. IN THE NAME OF THE PRESENT ASSESSEE AND T HE PROJECT WAS TAKEN OVER BY THE SAID COMPANY. THOUGH THE FLAT BOOKINGS WERE CA NCELLED BY THESE PERSONS, THERE WAS NO REFUND BY THE COMPANY TO THESE PARTIES . STILL IT IS OUTSTANDING IN THE NAME OF THE ASSESSEE IN THE BOOKS OF ACCOUNT OF THE COMPANY. THE ASSESSING OFFICER WAS OF THE OPINION THAT THIS AMOU NT WAS ACTUALLY REFUNDED BY THE ASSESSEE TO THESE FOUR PARTIES AND TREATED AS U NACCOUNTED PAYMENT BY THE ASSESSEE AND BROUGHT THE SAME TO TAX. 5. AGAINST THIS, THE ASSESSEE WENT IN APPEAL BEF ORE THE CIT(A). THOUGH THE CONFIRMATION LETTER WAS FILED BEFORE THE CIT(A) IN RESPECT OF SHRI SUNNY MATHEW I.T.A. NO.469/C/2015 3 AND SHRI AZEEM, THE CIT(A) HAS NOT AGREED WITH THE CONTENTION OF THE ASSESSEE AND SUSTAINED THE EARLIER ADDITION OF RS.44,64,200/ - . 6. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. THE LD. AR PLEADED BEFORE US THAT THESE AMOUNTS WERE ADVANCED TO THE ASSESSEE BY THOSE PARTIES IN EARLIER ASSESSMENT YEARS AND IT IS STILL OUTSTANDING IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND THE SAME IS CONFIRMED BY THE ABOVE PAR TIES. 7. THE LD. DR RELIED ON THE ORDERS OF THE LOWER AU THORITIES. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL ON RECORD. IN OUR OPINION, THIS ISSUE IS TO BE EXAMINED BY THE AS SESSING OFFICER BY MAKING FURTHER ENQUIRIES WITH THE CONCERNED PARTIES WHETHE R IT WAS ACTUALLY REFUNDED TO THEM ON CANCELLATION OF FLAT BOOKINGS. IF IT IS AC TUALLY REFUNDED BY THE ASSESSEE, WITHOUT ENTERING THE SAME IN THE BOOKS OF ACCOUNT O F THE ASSESSEE, THEN IT IS TO BE TREATED AS UNACCOUNTED INCOME AND IS TO BE BROUG HT TO TAX. THE ASSESSEE HAS TO LEAD EVIDENCE WITH REGARD TO THE NON-REFUND OF T HE SAID AMOUNT TO THE ABOVE PARTIES AND IF NECESSARY, THE ASSESSING OFFICE CAN SUMMON THE PARTIES AND MAKE I.T.A. NO.469/C/2015 4 ENQUIRIES IN ACCORDANCE WITH LAW AND DECIDE AFRESH. ACCORDINGLY, WE REMIT THIS ISSUE IN DISPUTE TO THE FILE OF THE ASSESSING OFFIC ER FOR FRESH CONSIDERATION. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSE E IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THI S 19 TH MARCH, 2018. SD/- SD/- ( GEORGE GEORGE K.) (CHAN DRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: DATED: 19 TH MARCH, 2018 GJ COPY TO: 1. SHRI C. MURALEEDHARAN, PROPRIETOR, M/S. MURALEE & ASSOCIATES, TC NO.15/514, SANDHYA 1/17, UDARASIROMANI ROAD, VELLYAMBALAM, T RIVANDRUM-10. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRA L CIRCLE-1, TRIVANDRUM. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS)-IV, KOCH I 4. THE COMMISSIONER OF INCOME-TAX, CENTRAL, KOCHI 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRA R) I.T.A.T. , COCHIN