DCIT 9(2)(2), MUMBAI V. CITYGOLD FARMING P.LTD, MUMBAI

ITA 4751/MUM/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9928 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 20-08-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITTAL
• Assessee Lawyers: VISHAL DOSHI
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH C, MUMBAI BEFORE D.T. GARASIA, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.4751/M/2015 ASSESSMENT YEAR: 2012-13 DY. CIT 9(2)(2), R.NO.414, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 VS. M/S. CITYGOLD FARMING P. LTD., 317, 3 RD FLOOR, RAHEJA CHAMBERS, FREE DPRESS MARG, NARIMAN POINT, MUMBAI 400 021 PAN: AAFCA8865R (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI VISHAL DOSHI, A.R. REVENUE BY : SHRI RAJAT MITTAL, D.R. DATE OF HEARING : 29.06.2017 DATE OF PRONOUNCEMENT : 14.07.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 29.05.2015 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2012-13. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER: THE ASSESSEE IS A COMPANY ENGAGED IN BUSINESS OF A CQUISITION BY PURCHASE, LEASING OR OTHERWISE, TO CARRY OUT AGRICU LTURE AND ALLIED ACTIVITIES AND TO CONSTRUCT, ERECT, ACQUIRE, EQUIP, LEASE FURNISH, CONVERT, ADAPT, IMPROVE, DEVELOP, OPERATE AND MANAGE ALL SORTS OF AGRICULTUR AL PARKS ETC. DURING THE COURSE OF ASSESSMENT PROCEEDING, LD. A.R. OF THE AS SESSEE WAS ASKED TO FURNISH THE LOAN CONFIRMATION, ITR AND BALANCE SHEET IN RES PECT OF ADVANCE GIVEN BY M/S. A.N. ENTERPRISES TO THE ASSESSEE AMOUNTING TO RS.6,00,00,000/-. AS THE ITA NO.4751/M/2015 M/S. CITYGOLD FARMING P. LTD. 2 ASSESSEE DID NOT PRODUCE ADDRESS OF M/S. A.N. ENTER PRISES AND SAID DETAILS, THE ASSESSEE WAS AGAIN GIVEN FURTHER NOTICE AND ASSESSE E HAS FURNISHED OWN BANK STATEMENT REFLECTING THE AMOUNT RECEIVED FROM M/S. A.N. ENTERPRISES. THE ASSESSEE COULD NOT PRODUCE THE CONFIRMATION FROM TH E SAID PARTY. THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE A O) HAS ISSUED NOTICE UNDER SECTION 133(6) OF THE ACT TO LENDER WHO DID NOT RES POND TO THE NOTICE. THEREFORE, AO HAS MADE THE ADDITION. 3. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT(A) HAS ALLOWED THE APPEAL OF THE ASSESSEE. 4. DURING THE COURSE OF HEARING, THE LD. D.R. SUBMI TTED THAT THE LD. CIT(A) HAS ALLOWED THE APPEAL WITHOUT VERIFYING THE CREDIT WORTHINESS, GENUINENESS OF THE TRANSACTION AND IDENTITY OF THE CREDITOR, THERE FORE, MATTER MAY BE RESTORED TO THE AO TO VERIFY THE SAME. 5. THE LD. A.R. HAS NO OBJECTION, IF THE MATTER IS RESTORED TO THE FILE OF THE AO. 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. WE FIND THAT DURING THE COURSE BEFORE THE LD. CIT(A), THE ASSESS EE HAS SUBMITTED OWN BANK STATEMENT REFLECTING THE SAID PAYMENT, LEDGER ACCOU NT OF LENDER AND BALANCE CONFIRMATION BUT LD. CIT(A) HAS NOT CALLED FOR THE REMAND REPORT OR THE LD. CIT(A) HAS NOT VERIFIED THESE DETAILS. THE LD. CIT (A) HAS, SIMPLY RELYING UPON THE JUDGMENT OF HONBLE GUWAHATI HIGH COURT IN THE CASE OF NEMI CHAND KOTHARI VS. CIT (2014) 264 ITR 254, DELETED T HE ADDITION. THEREFORE, WE REVERSE THE FINDING OF LD. CIT(A) AND RESTORE TH IS MATTER BACK TO THE FILE OF AO AND THE AO IS DIRECTED TO DECIDE THE MATTER AFRE SH, AS PER LAW. ITA NO.4751/M/2015 M/S. CITYGOLD FARMING P. LTD. 3 7. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14.07.2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 14.07.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.