CBS Steel Pvt. Ltd., Delhi V. DCIT, New Delhi

ITA 6193/DEL/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5213 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 02-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B: NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 6193/DEL/2016 ASSTT. YEAR: 2012-13 O R D E R PER SUDHANSHU SRIVASTAVA, JM: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST ORDER DATED 26.8.2016 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, NEW DELHI {CIT (A)} FOR ASSESSMENT YEAR 2012-13. 2. BRIEF FACTS OF THE CASE ARE THAT IN THIS CASE THE RETURN OF INCOME WAS FILED DECLARING A LOSS OF RS. 112,705,570/-. THE CASE WAS SELECTED FOR SCRUTINY AND DURING THE COURSE OF ASSESSMENT CBS STEEL PVT. LTD. M/S. S B GARG & CO., CAS, 20/17, SHAKTI NAGAR, DELHI 110 007 PAN AACCC7004P VS. DCIT CIRCLE-5(2) NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI SACHIN KUMAR, FCA DEPARTMENT BY : SHRI AMRIT LAL, SR. DR DATE OF HEARING 04/11 /201 9 DATE OF PRONOUNCEMENT 05 /11/2019 ITA NO. 6193/DEL/2016 CBS STEEL PVT. LTD. VS. DCIT 2 PROCEEDINGS, THE ASSESSING OFFICER (AO) NOTICED THAT THE ASSESSEE HAD RECEIVED SHARE CAPITAL/PREMIUM TO THE TUNE OF RS. 38,700,000/-. THE AO PROCEEDED TO TREAT THE SAID SHARE CAPITAL/PREMIUM AS UNEXPLAINED CASH CREDIT U/S 68 OF THE INCOME TAX ACT 1961 (HEREINAFTER CALLED THE ACT) AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. ON APPEAL, THE LD. CIT (A) UPHELD THE ADDITION. NOW, THE ASSESSEE IS BEFORE THE ITAT AND HAS CHALLENGED THE ORDER OF THE LD. FIRST APPELLATE AUTHORITY. 3. AT THE OUTSET, THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE LD. FIRST APPELLATE AUTHORITY HAS PASSED THE ORDER AND UPHELD THE ADDITION WITHOUT THE ISSUE BEING PROPERLY REPRESENTED BEFORE HIM. IT WAS PLEADED THAT IN THE INTEREST OF JUSTICE, THE ASSESSEE SHOULD BE GIVEN ANOTHER OPPORTUNITY BEFORE THE LD. CIT (A). 4. IN RESPONSE, THE LD. SENIOR DEPARTMENTAL REPRESENTATIVE POINTED OUT THAT SEVERAL OPPORTUNITIES HAD BEEN AFFORDED TO THE ASSESSEE BY THE LD. FIRST APPELLATE AUTHORITY BUT HE CHOSE TO SEEK ADJOURNMENT ON EACH OCCASION AND, THEREFORE, THE LD. FIRST APPELLATE AUTHORITY HAD NO OPTION BUT TO DECIDE THE CASE BASED ON THE MATERIAL AVAILABLE ON RECORD. ITA NO. 6193/DEL/2016 CBS STEEL PVT. LTD. VS. DCIT 3 5. HAVING HEARD BOTH THE PARTIES AND AFTER HAVING GONE THROUGH THE IMPUGNED ORDER, IT IS OUR CONSIDERED OPINION THAT IN VIEW OF SUBSTANTIAL JUSTICE THE ASSESSEE SHOULD BE GIVEN ANOTHER CHANCE. THEREFORE, WE RESTORE THE APPEAL TO THE FILE OF THE LD. CIT (A). HOWEVER, THIS RESTORATION IS SUBJECT TO THE ASSESSEE DEPOSITING AN AMOUNT OF RS. 25,000/- TOWARDS THE PRIME MINISTERS NATIONAL RELIEF FUND ON OR BEFORE 30 TH NOVEMBER, 2019. THE ASSESSEE SHALL PRESENT ITSELF BEFORE THE LD. CIT (A) ON OR BEFORE 6 TH FEBRUARY, 2020 ALONG WITH THE COPY OF THIS ORDER AND RECEIPT OF PAYMENT OF RS. 25,000/- TOWARDS THE PRIME MINISTERS NATIONAL RELIEF FUND AND THE LD. CIT (A) SHALL GRANT HIM ADEQUATE OPPORTUNITY AND DECIDE THE ISSUES BEFORE HIM AFRESH. 6. IN THE FINAL RESULT THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH NOVEMBER, 2019. SD/- SD/- (PRASHANT MAHARISHI) (SUDHANSHU SRIVASTAVA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 05/11/2019 VEENA COPY FORWARDED TO ITA NO. 6193/DEL/2016 CBS STEEL PVT. LTD. VS. DCIT 4 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI