ITO,WD-2(4), KOLKATA, Kolkata V. M/s Umesh Suppliers Pvt. Ltd., Kolkata

ITA 63/KOL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6431 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 13-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA CIT LD
• Keywords: Unexplained cash credit; Source of fund
• Section: 143(3); 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : B BENCH, KOLKATA BEFORE : SHRI M. BALAGANESH, ACCOUNTANT ME MBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO. 63/KOL/2016 A.Y 2009-10 INCOME TAX OFFICER VS. M/S. UMESH SUPPLIE RS WARD 2(4), KOLKATA PVT. LTD. PAN: AAACU8385P [APPELLANT ] [RESPONDENT ] APPELLANT BY : SHRI S. DASGUPTA, ADDL. CIT, LD.SR.DR RESPONDENT BY : NONE APPEARED DATE OF HEARING : 05-03-2018 DATE OF PRONOUNCEMENT : 02-05-2018 ORDER SHRI S.S.VISWANETHRA RAVI, JM: THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DT. 30-10- 2015 OF THE CIT-A, 1, KOLKATA FOR THE A.Y 2009-10. 2. IT IS REPORTED THAT NEITHER ANY ONE APPEARED FOR THE ASSESSEE NOR ANY APPLICATION FILED FOR SEEKING ADJOURNMENT. THEREFORE, WE PROCEED TO HEAR THE LD.DR AND DISPOSE OF THE APPE AL ON MERITS AND BY PERUSING THE MATERIAL AVAILABLE ON RECORD. 3. THE ONLY ISSUE IS TO BE DECIDED AS TO WHETHER TH E CIT-A IS JUSTIFIED IN DELETING THE IMPUGNED ADDITIONS MADE O N ACCOUNT OF UNEXPLAINED CREDIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. AFTER HEARING THE LD.DR AND PERUSING THE MATERIA L ON RECORD, IT IS NOTICED THAT THE AO FOR NON PRODUCTION OF DOCUME NTARY EVIDENCE TO ESTABLISH THE IDENTITY, CAPACITY OF PERSONS AND GEN UINENESS OF THE TRANSACTION A SUM OF RS.54,00,000/- ( RS. 6,00,000 + RS.48,00,000) CREDITED IN THE BOOKS OF ACCOUNT OF ASSESSEE TOWARD S SUNDRY ITA NO. 63/KOL/2016 M/S.UMESH SUPPLIERS P.LTD. 2 CREDITORS, NAMELY, M/S. KISHAN TIE-UP PVT. LTD AND M/S. ASTER TELE SERVICES PVT. LTD AS UNEXPLAINED CREDIT AS AGAINST THE CLAIM OF CURRENT LIABILITY AND ADDED THE SAME TO THE TOTAL I NCOME VIDE AN ORDER U/S. 143(3) OF THE ACT ON 29-12-2011. 5. THE CIT-A CONSIDERING THE DOCUMENTARY EVIDENCES FILED BEFORE HIM BY THE ASSESSEE SOUGHT REMAND REPORT FROM THE A O IN RESPECT OF TWO PARTIES, M/S. KRISHAN TIE UP P.LTD & M/S. AST ER P.LTD & AND DELETED THE ADDITION OF RS. 54,00,000/- AS THERE WA S NO ADVERSE REMARK IN HIS SAID REMAND REPORT BY THE AO. 6. WE FIND THAT THE CIT-A CONSIDERING THE SUBMISSI ONS OF ASSESSEE SOUGHT REMAND REPORT FROM THE AO REGARDING SAID TWO PARTIES, M/S. KRISHAN TIE UP P.LTD & M/S. ASTER P.LTD & AND FOUN D SATISFIED THAT THE ASSESSEE COULD PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF TRANSACTION AS PER PROVISIONS OF SECTION 68 OF T HE ACT. WE FIND THAT THE AO ISSUED NOTICES U/S. 133(6) OF THE ACT TO BOT H THE PARTIES FOR CONFIRMATION OF SAID TRANSACTION. IN RESPONSE TO WH ICH, LOAN CONFIRMATION, BANK DETAILS, COPY OF IT RETURNS WERE FURNISHED BEFORE THE AO. THE AO IN HIS REMAND REPORT HAS NOT CONTRO VERTED THE DOCUMENTARY EVIDENCES PRODUCED IN RESPONSE TO NOTIC ES ISSUED U/SEC. 133(6) OF THE ACT TO SUBSTANTIATE THE IDENTI TY, MODE OF PAYMENT AND SOURCES OF INCOME/CAPACITY OF BOTH THE PARTIES ABOVE. RELEVANT PORTION OF ORDER OF CIT-A IS REPRODUCED H EREIN BELOW:- 7.1. GROUNDS OF APPEAL NO.1: THIS GROUNDS OF APPEAL IS AGAINST THE ADDITION MADE BY THE A.O. OF SUNDRY CREDITORS AMOUNTING TO RS. 54,00,000 /- AS UNEXPLAINED CASH CREDITORS ON THE GROUND THAT THE ASSESSEE SHOULD NOT PRODUCE THE SAID CREDITORS BEFORE HIM. FROM PERUSAL OF THE A.O.'S FINDING, IT IS OBSERVED THAT THERE IS NO DISPUTE ON THE ISSUE THAT AS CONTENDED BY THE APPELLANT THE ADDITION OF RS. 54,00,000/- MADE BY THE A.O. AS THE UNSECURED CREDITORS WERE NOT PRODUCED FOR VERIF ICATION BEFORE HIM DURING THE ASSESSMENT PROCEEDINGS TO VERIFY THEIR GENUINENESS. DURING THE APPELLATE PROCEEDINGS, AS PER REMAND RE PORT OF THE A.O THE APPELLANT HAS PRODUCED ONE OF THE DIRECTORS OF SUNDRY CREDITOR M/ S. KRISHAN TIE UP PVT. LTD SITUATED IN KOLKATA. THE STATEMENT OF THE DIRECTOR, SHRI SHASHA NK AGARWAL RECORDED, WHEREBY HIS IDENTITY WAS VERIFIED. IN ADDITION SUPPORTING EVIDE NCES I.E. COPIES OF PAN CARD, LOAN CONFORMATION, COPY OF BANK STATEMENT, BALANCE SHEET AND IT. RETURN FOR RELEVANT A.Y.2009-I0, DETAILS OF SUNDRY CREDITORS ETC WERE F ILED IN RESPECT OF LOAN OF RS.6,00,000/- -. IN RESPECT RS.48,00,000/- RECEIVED FROM M/S. AST ER PVT. LTD, LOCATED AT HYDERABAD, A.O. HAD SENT NOTICE U/S.133(6) AND IN COMPLIANCE I NFORMATION, INCLUDING LOAN CONFIRMATION, BANK TRANSACTION DETAILS, COPY OF INC OME TAX RETURNS WERE FURNISHED BEFORE THE ASSESSING OFFICER, AS PER ACCOUNTS ON RE CORD. THE A.O. IN HIS REMAND REPORT ITA NO. 63/KOL/2016 M/S.UMESH SUPPLIERS P.LTD. 3 HAS NOT CONTROVERTED THE DOCUMENTARY EVIDENCE PRODU CED BY THE APPELLANT TO SUBSTANTIATE THE IDENTITY, MODE OF PAYMENT AND SOUR CES OF INCOME / CAPACITY OF BOTH THE ABOVE MENTIONED SUNDRY CREDITORS. IN VIEW OF THE ABOVE DISCUSSION AND TOTALITY OF FAC TS OF THE CASE, I CONCUR WITH THE, APPELLANT'S CONTENTION THAT 'AS THE IDENTITY AND CR EDITWORTHINESS OF BOTH THE CREDITORS HAS BEEN PROVED AND ALSO THE GENUINENESS OF THE TRA NSACTION HAS BEEN ESTABLISHED', THE ADDITION ON ACCOUNT OF UNEXPLAINED CASH CREDITS AGG REGATING TO RS. 54,00,000/- IS UNWARRANTED. THE SAME IS HEREBY DELETED. THIS GROUN D OF APPEAL IS ACCORDINGLY ALLOWED. 7. IN VIEW OF ABOVE, WE ARE OF THE VIEW THAT BOTH T HE SAID CREDITORS HAVE PROVED THEIR IDENTITY, CREDITWORTHIN ESS AND THE GENUINENESS OF TRANSACTION. THE CIT-A CONSIDERING THE REMAND REPORT OF AO DELETED THE IMPUGNED ADDITION MADE ON ACCOUNT OF UNEXPLAINED CREDIT OF RS.54,00,000/-. WE FIND NO INFIRMITY IN T HE ORDER OF CIT-A AND IT IS JUSTIFIED. THEREFORE, THE GROUND NOS. 1 & 2 RAISED BY THE REVENUE IN THE APPEAL ARE DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY THE REVEN UE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02 -05-2018 SD/- SD/- M. BALAGANESH S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :02-05-2018 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPLICANT/DEPARTMENT : THE I.T.O. WARD 2(4), KOLKAT A, AAYKAR BHAVAN, 7 TH FLOOR, ROOM NO. 22,P-7 CHOWRINGHEE SQUARE, KOLKATA -700 069. 2 RESPONDENT/ASSESSEE: M/S. UMESH SUPPLIERS PVT. LTD, 7 TH FLOOR, 16 GANESH CHANDRA AVENUE,KOLKATA-700 013. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER SR.P.S, HEAD OF OFFICE ITAT KOLKATA