Corus Construction Pvt. Ltd., Ludhiana V. ITO, W-7(1), Ludhiana

ITA 524/CHANDI/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8954 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 22-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Income from undisclosed sources; Principle of natural justice
• Section: 143(3); 147; 68; 2

Judgement Text

, ,A, IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A CHANDIGARH BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER, AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NOS. 523 TO 525/CHD/2019 /ASSESSMENT YEARS: 2008-09, 2010-11 & 2014-15 CORUS CONSTRUCTION PVT. LTD., INDIA INTERNATIONAL HABITAT CENTRE, NH-1, ADJACENT TO HARDYS WORLD AMUSEMENT PARK, VILL. QUADIAN, JALANDHAR BYE PASS, LUDHIANA PUNJAB INCOME TAX OFFICER, WARD 7(1), LUDHIANA ./PAN NO : AADCC 1488L /APPELLANT /RESPONDENT /ASSESSEE BY : SHRI RAJESHWAR PRASAD PAINULY, CA ! / REVENUE BY : SMT. C. CHANDRAKANTA, CIT ' #$ /DATE OF HEARING : 02.08.2021 %&'($ /DATE OF PRONOUNCEMENT : 05.08.2021 /ORDER PER ANNAPURNA GUPTA, A.M. : THESE APPEALS RELATE TO THE SAME ASSESSEE FOR D IFFERENT ASSESSMENT YEARS AND ARE AGAINST THE ORDER PASSED B Y THE COMMISSIONER OF INCOME TAX (APPEALS)-3, LUDHIANA [I N SHORT REFERRED TO AS CIT(A)] DATED 28-01-2019, 21.01.20 19 & ITA NOS. 523 TO 525/CHD/2019 CORUS CONSTRUCTION PVT. LTD. V. ITO, LUDHIANA 2 14.11.2018 U/S 250(6) OF THE INCOME TAX ACT,1961 ( HEREINAFTER REFERRED TO AS ACT). 2. AT THE OUTSET, IT WAS STATED THAT THE ISSUE INVOLV ED IN ALL THE APPEALS WAS IDENTICAL RELATING TO ADDITIONS MADE U/ S 68 OF THE ACT OF THE AMOUNT RECEIVED ON ACCOUNT OF SHARE CAPITAL INCLUDING PREMIUM DURING THE IMPUGNED YEARS. SINCE A COMMON I SSUE WAS INVOLVED IN ALL THE APPEALS THEY WERE ALL TAKEN UP TOGETHER FOR HEARING AND ARE BEING DISPOSED OF BY THIS A COMMON ORDER. THERE WAS A DELAY IN THE FILING OF ALL THE APPEALS, BEING 5 DAYS, 3 DAYS AND 56 DAYS RESPECTIVELY IN THE FILING OF APPE ALS IN ITA NO NOS. 523, 524 & 525/CHD/2019. LD. COUNSEL FOR THE A SSESSEE CONTENDED THAT THE DELAY WAS ON ACCOUNT OF THE FACT THAT ALL THE MAILS AND NOTICES OF THE ORDERS WERE SENT TO AN EAR LIER CONSULTANT AND A NEW CONSULTANT HAD BEEN APPOINTED SUBSEQUENTL Y , WHO THEREAFTER PROMPTLY ACTED IN FILING THE APPEALS AND ON ACCOUNT OF THE SAME THERE WAS A MINOR DELAY IN THE FILING OF T HE APPEALS. AN AFFIDAVIT OF THE DIRECTOR OF THE ASSESSEE COMPANY, MR. BRIJ BHUSHAN SHARMA, STATING THE AFOREMENTIONED FACT ON OATH WAS ALSO FILED BEFORE US AND IN THE SAID AFFIDAVIT HE ALSO U NDERTOOK TO ENSURE NO FURTHER DELAYS OR DEFAULTS IN THE FUTURE. THE LD. DR DID NOT OBJECT TO THE CONDONATION OF DELAY. ITA NOS. 523 TO 525/CHD/2019 CORUS CONSTRUCTION PVT. LTD. V. ITO, LUDHIANA 3 IN VIEW OF THE SAME NOTING THAT THE DELAY IS ONLY OF 3 DAYS, 5 DAYS AND 56 DAYS AND IS ATTRIBUTABLE TO THE CHANGE IN THE CONSULTANT, AND FURTHER CONSIDERING THAT THE ADMISS ION OF THE APPEALS FOR HEARING IS NOT TO THE PREJUDICE OF THE REVENUE, IN THE INTEREST OF JUSTICE, THEREFORE AND CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES OF THE CASE, THE DELAY WAS CONDONED A ND THE HEARING OF THE APPEAL PROCEEDED WITH. IN ALL THE IMPUGNED APPEALS BEFORE US THE ASSESSEE HAS CHALLENGED THE ADDITION MADE U/S 68 OF THE ACT OF THE SHARE CA PITAL AND PREMIUM RECEIVED RAISING IDENTICAL GROUNDS. FOR THE SAKE OF CONVENIENCE GROUNDS RAISED IN ITA NO. 523/CHD/2019 RELATING TO ASSESSMENT YEAR 2008-09 ARE REPRODUCED HEREUNDER: 1. THE HONBLE CIT(A) HAS NOT FOLLOWED THE LAW OF NATURAL JUSTICE WHILE CONFIRMING ADDITIONS BY THE LD. A.O. 2. THAT THE IMPUGNED APPEAL ORDER IS BAD IN LAW, IL LEGAL, AND IN VIOLATION OF RUDIMENTARY PRINCIPAL OF CONTEMPORARY JURISPRUDENCE. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER PASSED BY THE LEARNED ASSESSING OFFICER U/S 148/143(3) IS BAD BOTH IN THE EYES OF LAW AND FACTS. THAT THE LD. ASSESSING O FFICER HAS WRONGLY MADE THE ASSESSMENT BY INVOKING THE PROVISI ONS OF SECTION 147 WHEN THE SAME ARE NOT APPLICABLE ON THE FACTS OF THE CASE. 4. THAT THE IMPUGNED ASSESSMENT ORDER IS ARBITRARY, ILLEGAL, BAD IN LAW AND IN VIOLATION OF RUDIMENTARY PRINCIPLES O F ITA NOS. 523 TO 525/CHD/2019 CORUS CONSTRUCTION PVT. LTD. V. ITO, LUDHIANA 4 CONTEMPORARY JURISPRUDENCE. THAT THE PROVISIONS OF SECTION 234A, 234B, 234C AND 234D ARE NOT AT ALL APPLICABLE . 5. THAT THE HONBLE COMMISSIONER OF INCOME TAX (APP EAL) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING AN ADDITION OF RS.5,82,75,167/- AS INCOME FROM UNDISCLOSED SOURCES ON ACCOUNT OF SHARE PREMIUM U/S 68 ONLY DUE TO WANT OF PROOF. 6. THAT THE APPELLANT CRAVES LEAVE TO ADD/ALTER ANY /ALL GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING OF THE APPE AL. THE FACTS OF THE CASE ARE THAT ON THE BASIS OF AIR INFORMATION WITH THE AO THAT THE ASSESSEE HAD RECEIVED HUGE SH ARE PREMIUMS IN ASSESSMENT YEARS 2008-09 & 2010-11 OF RS.5,59,5 8,000/-, 4,52,22,000/- RESPECTIVELY, AGAINST RS.10 FACE VALU E OF SHARES , THE CASE OF THE ASSESSEE WAS REOPENED U/S 147 OF TH E ACT AND ASSESSMENT MADE BY MAKING ADDITIONS OF THE SHARE PR EMIUM ALONG WITH THE SHARE CAPITAL AMOUNTING TO RS.5,83,00,000/ - AND 4,61,51,000/- RESPECTIVELY IN THE SAID YEARS. FOR ASSESSMENT YEAR 2014-15, THE AO COMPLETED THE ASSESSMENT U/S 143(3) MAKING AN ADDITION OF RS.68,15,000/- U/S 68 OF THE ACT ON THE GROUND THAT THE ASSESSEE HAD FAILED TO PROVE THE GENUINENESS ID ENTITY AND CREDITWORTHINESS OF THE PERSON FROM WHOM CREDITS HA VE BEEN RECEIVED BY WAY OF SHARE CAPITAL/SHARE PREMIUM. THESE ADDITIONS WERE UPHELD BY THE LD. CIT(A) IN AL L THE THREE APPEALS. THE LD. CIT(A) WE FIND DECIDED THE APPEALS EX- PARTE IN ITA NOS. 523 TO 525/CHD/2019 CORUS CONSTRUCTION PVT. LTD. V. ITO, LUDHIANA 5 ALL THE THREE CASES NOTING THAT DESPITE SEVERAL OPP ORTUNITIES GRANTED, NONE APPEARED ON BEHALF OF THE ASSESSEE. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE PLEADED THAT THE MATTERS BE RESTORED BACK TO THE CIT(A) AND HE BE AF FORDED OPPORTUNITY OF PRESENTING ALL FACTS AND ARGUMENTS B EFORE HIM. HE FURTHER GAVE AN ORAL UNDERTAKING TO COOPERATE IN TH E PROCEEDINGS. CONSIDERING THE SAME, SINCE IT IS AN EXPARTE ORDER OF THE LD.CIT(A), WE ARE OF THE VIEW THAT THE INTEREST OF JUSTICE WILL BE WELL SERVED BY GRANTING AN OPPORTUNITY TO THE ASS ESSEE TO PRESENT ITS CASE .THE ASSESSEE IS DIRECTED TO APPEAR BEFORE LD. CIT(A) LATEST BY THE 30 TH NOVEMBER, 2021 AND IS ALSO DIRECTED TO CO- OPERATE IN THE PROCEEDINGS AND NOT ABUSE THE TRUST REPOSED IN HIM, FAILING WHICH THE LD.CIT(A) MAY DISPOSE OF THE APP EALS AS HE CONSIDERS FIT IN ACCORDANCE WITH LAW. 3. IN EFFECT, ALL THE APPEALS THEREFORE STAND ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05.08.2021. SD/- SD/- (SATBEER SINGH GODARA) (ANNAPURN A GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER ITA NOS. 523 TO 525/CHD/2019 CORUS CONSTRUCTION PVT. LTD. V. ITO, LUDHIANA 6 DATED: 05.08.2021 GP/SR.PS &) *+,+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' - / CIT 4. ' - ( )/ THE CIT(A) 5. +./ 0 , $0 , 123/4 / DR, ITAT, CHANDIGARH 6. /35# / GUARD FILE &) ' / BY ORDER, / ASSISTANT REGISTRAR