Aditya Prints Pvt. Ltd., Surat V. The Assistant Commissioner of Income Tax, Cricle-1(1)(1), Surat

ITA 471/SRT/2018

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The case involves Aditya Prints Pvt. Ltd., which appealed against the order of the Commissioner of Income-tax (Appeals)-1 Surat, confirming the addition of Rs. 1.30 Crore as unexplained cash credit under section 68 of the Income Tax Act, 1961. The addition was initially made by the Assessing Officer during the assessment for the year 2012-13, on the grounds that the assessee failed to establish the identity, creditworthiness, and genuineness of the investor company. The Tribunal noted that the assessee did not provide any evidence or documents to substantiate their claims at any stage of the proceedings, including before the Tribunal.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 135786 (ITAT-SURAT)
• Duration Of Justice: 4 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-12-2022
• Assessment Year: 2012-2013
• Appeal Filed On: 04-07-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SECURED
• Section: 68; 143(3)

Judgement Text

आयकरअपीलȣयअͬधकरण,स ु रतÛयायपीठ,स ु रत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr ARJUN LAL SAINI, ACCOUNTANT MEMBER आ.अ.सं./ITA No.471/SRT/2018 (AY 2012-13) (Hearing in Physical Court) Aditya Prints Pvt. Ltd. 11-B, Ratna Sagar Apartment, Chandni Chowk, Piplod, Surat- 395007 PAN No. AAGCA 2785 F Vs Assistant Commissioner of Income Tax, Circle- 1(1)(1), Surat Aaykar Bhavan, Majura Gate, Surat-395002 अपीलाथȸ/Appellant Ĥ×यथȸ /Respondent Ǔनधा[ǐरती कȧ ओर से /Assessee by None राजèव कȧ ओर से /Revenue by Shri Vinod Kumar, Sr-DR सुनवाई की तारीख/Date of hearing 29.12.2022 उɮघोषणा कȧ तारȣख/Date of pronouncement 29.12.2022 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of ld. Commissioner of Income-tax (Appeals)-1 Surat [for short to as “Ld. CIT(A)”] dated 16.11.2017 for the assessment year 2012-13, which in turn arises out of assessment order passed by Assessing Officer under section 143(3) of Income Tax Act, 1961 (hereinafter referred to as ‘the Act’ for the sake of brevity) on 31.03.2015. The assessee has raised the following grounds of appeals:- “1. On the facts and circumstances of the case the Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. AO in ITA No.471/SRT/2018 (A.Y 12-13) Aditya Prints Pvt.Ltd. 2 holding that the identity, genuineness and creditworthiness of the company investing an amount of Rs.1,30,00,000/- in the subscription of the share capital of the appellant company is not established. Such findings are contrary and in complete disregard f the facts and are therefore prayed to be expunged. 2. On the facts and circumstances of the case the Ld. CIT(A) in making addition of Rs.1,30,00,000/- received as share capital during the yar to be unexplained cash credit u/s 68 of the I.T. Act. The addition of Rs.1,30,00,000/- made is prayed to be deleted. 3. Your appellant craves liberty to add, alter, amend or delete any or all the grounds of appeal stated above.” 2. Brief facts of the case are that assessment in question of assessee was completed under section 143(3) on 31.03.20215. The Assessing Officer while passing the assessment order made addition of Rs.1.30 crores under section 68 of the Act by taking view that assessee failed to prove identity, creditworthiness and genuineness of such transaction of share premium and share capital, received during the year. On appeal before Ld. CIT(A), the action of Assessing Officer was upheld. The Ld. CIT(A) while upholding the addition held that assessee has received share capital and share premium from Country Financial Consultancy Services Pvt. Ltd. The assessee failed to provide to prove the identity, creditworthiness and genuineness of ITA No.471/SRT/2018 (A.Y 12-13) Aditya Prints Pvt.Ltd. 3 the transaction. The Ld. CIT(A) by referring various decisions upheld the addition made by Assessing Officer under section 68 of the Act. Further aggrieved, the assessee has filed present appeal before the Tribunal. 3. None appeared on behalf of assessee nor filed any adjournment application by assessee or its Authorized Representative today at the time of hearing. Despite service of notices of hearing, more than two occasions, on perusal of record shows that Ld. AR for the assessee appeared on several occasions and thereafter stopped appearing. On 18.08.2022, Ld. AR for the assessee filed an application for seeking adjournment on the ground that insolvency proceedings were initiated against the assessee by secured creditors and no order of Moratorium is filed thereafter. The assessee was not appearing. In such circumstances we left no option except to decide the appeal on the basis of material on record and on hearing the submissions of the learned senior departmental representative (Sr DR) of the revenue. 4. The ld SR for the revenue submits that the assessee has not discharged his onus before lower authorities in proving ITA No.471/SRT/2018 (A.Y 12-13) Aditya Prints Pvt.Ltd. 4 the three ingredients. i.e. identity, creditworthy and genuineness of investor. Even before tribunal the assessee has not filed even single documents to discharge its onus in substantiating various grounds of appeal. 5. We have considered the submissions of ld SR DR for the revenue and have gone through the orders of the lower authorities carefully. We find that the assessing officer made addition under section 68 of Rs. 1.30 Crore by taking view that the assessee received share premium and share capital but failed to prove failed to prove identity, creditworthiness and genuineness of such transaction of share premium and share capital, received during the year from Country Financial Consultancy Services Pvt. No evidence if filed either before ld CIT(A) or before the Tribunal about the identity, creditworthiness and genuineness of such transaction of share premium and share capital. Thus, in absence of any explanation/ submissions in oral or in writing, or any evidence, we affirm the additions made by assessing officer under section 68 of Rs. 1.30 Crore. In the result the grounds of appeal raised by the assessee is dismissed. ITA No.471/SRT/2018 (A.Y 12-13) Aditya Prints Pvt.Ltd. 5 6. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 29/12/2022. Sd/- Sd/- (Dr ARJUN LAL SAINI) (PAWAN SINGH) [लेखा सद᭭य/ACCOUNTANT MEMBER] [᭠याियक सद᭭य JUDICIAL MEMBER] Surat, Dated: 29/12/2022 Dkp. Out Sourcing Sr.P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order // True Copy // Sr.P.S./Assistant Registrar, ITAT, Surat