M/s Astha Rice Mill (P) Ltd., Burdwan V. I.T.O.,Ward-1(1), Burdwan

ITA 633/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5908 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-02-2020
• Assessment Year: 2011-2012
• Appeal Filed On: 29-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA JCITSRDR
• Keywords: Unexplained cash credit
• Section: 143(3); 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.633/KOL/2019 ASSESSMENT YEAR:2011-12 M/S ASTHA RICE MILL (P) LTD. VILL. & P.O. PARAJ, BURDWAN-713403 [ PAN NO. AFJPB 4085 N ] / V/S . INCOME TAX OFFICER WARD-1(1), AAYAKAR BHAWAN, COURT COMPOUND, BURDWAN- 713101 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SOUMITRA CHOUDHURY, ADVOCATE /BY RESPONDENT SHRI JAYANTA KHANRA, JCIT-SR-DR /DATE OF HEARING 05-02-2020 /DATE OF PRONOUNCEMENT 14-02-2020 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-BURDWANS ORDE R DATED 13.02.2019 PASSED IN CASE NO.101/CIT(A)/BWN/ITO, WD-1(1), BWN/2016-17, INVOLVING PROCEEDINGS U/S. 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961; IN S HORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEE SOLE SUBSTANTIVE GRIEVANCE CANVASSE D IN THE COURSE OF HEARING BEFORE ME IS THAT BOTH THE LOWER AUTHORITIES HAVE E RRED IN LAW AND ON FACTS IN TREATING SHARE CAPITAL OF 30,00,000/- IN CASE OF M/S FALCON SECURITIES PVT. L TD. AS LACKING GENUINENESS / CREDITWORTHINESS AND LIABLE TO BE ADD ED AS UNEXPLAINED CASH CREDITS U/S. 68 OF THE ACT. SUFFICE TO SAY AND WITHOUT GOING DEE PER INTO MERITS OF THE ISSUE, I FIND THAT ALTHOUGH LOWER AUTHORITIES HAVE HELD THE FOREG OING ENTITY TO BE A NON-GENUINE ONE, ITA NO.633/KOL/2019 A.Y. 2011-12 M/S ASTHA RICE MILL (P) LTD. VS. ITO WD-1 (1), BWN PA GE 2 THE CLINCHING FACT THAT EMERGES FROM THE CASE RECOR DS IS THAT SAID INVESTOR PARTY HAD BEEN DULY SERVED DURING THE COURSE OF ASSESSMENT IT SELF U/S. 131 OF THE ACT. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO REBUT THAT ONC E THE SAID INVESTOR PARTY STOOD DULY SERVED U/S. 131 OF THE ACT, IT WAS FOR THE ASSESSIN G OFFICER TO PROCEED FOR NECESSARY FACTUAL VERIFICATION RATHER THAN DRAWING ADVERSE IN FERENCE AGAINST THE TAXPAYER AS WELL AS THE INVESTOR. BOTH THE LOWER AUTHORIZES HAVE ERR ED IN ADDING THE IMPUGNED ADDITION OF 30,00,000/- SHARE CAPITAL AS UNEXPLAINED CASH CREDI TS THEREFORE SINCE THE ABOVE STATED INVESTOR WAS NEVER ASKED TO PROVE GENUINENES S / CREDITWORTHINESS OF THE SHARE CAPITAL IN ISSUE. THE SAME IS DIRECTED TO BE DELETE D. NO OTHER GROUND HAS BEEN RAISED BEFORE ME. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 14/02/2020 SD/- (S.S. GODARA) JUD ICIAL MEMBER KOLKATA, *DKP/SR.PS - 14/02/2020 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S ASTHA RICE MILL (P) LTD. VILL & P.O. PARAJ, BURDWAN PIN-713403 2. /RESPONDENT-ITO WAR-1(1), AAYAKAR BHAWAN, COURT COM POUND, BURDWAN PIN-7 13101 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ ',