M/S ENKAY LIFE REALTORS PVT LTD. , NAVI MUMBAI V. ITO 15(1)(2) , MUMBAI

ITA 640/MUM/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6343 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 27-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGHLD
• Assessee Lawyers: HIRAL SEJPAL LD AR
• Keywords: Unexplained cash credit; Principle of natural justice; Additional evidence; Reassessment proceedings
• Section: 143(3); 22; 68; 15

Judgement Text

1 ITA NO.640 & 117/MUM/2020 M/S. ENKAY LIFE REALTORS PRIVATE LIMITED ASSESSMENT YEARS-2011-12 & 2012-13 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , BEFORE HONBLE SHRI VIKAS AWASTHY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) 1. . / ITA NO.640/MUM/2020 ( / ASSESSMENT YEAR:2011-12) & 2. . / ITA NO.117/MUM/2020 ( / ASSESSMENT YEAR:2012-13) M/S. ENKAY LIFE REALTORS PRIVATE L TD. SHOP NO.21, PLOT NO.55 CITY TOWER, SECTOR 15 CBD BELAPUR, NAVI MUMBAI- 400 614. / VS. I TO CIRCLE - 15(1)( 2 ) ROOM NO.15B/459 AAYKAR BHAVAN, M.K. ROAD CHURCHGATE, MUMBAI-400 020. !'./'./ PAN/GIR NO. AAICA-6716-G ( ! /APPELLANT ) : ($% ! / RESPONDENT ) !'/ APPELLANT BY : MS. HIRAL SEJPAL- LD. AR $% !'/ RESPONDENT BY : SHRI AMIT PRATAP SINGH-LD. DR / DATE OF HEARING : 22/09/2020 / DATE OF PRONOUNCEMENT : 22/09/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER): - 1. THE GRIEVANCE OF THE ASSESSEE IN THE AFORESAID A PPEALS FOR ASSESSMENT YEAR (AY) 2011-12 & 2012-13 IS COMMON. F ACTS ARE STATED TO BE PARI-MATERIA THE SAME IN BOTH THE YEAR S. FIRST, WE TAKE 2 ITA NO.640 & 117/MUM/2020 M/S. ENKAY LIFE REALTORS PRIVATE LIMITED ASSESSMENT YEARS-2011-12 & 2012-13 UP APPEAL FOR AY 2011-12 WHICH CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-24, MUMBAI, [I N SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-24/ITO- 15(1)(2)/IT- 239/2018-19 DATED 23/10/2019 ON FOLLOWING GROUNDS O F APPEAL: - GROUND NO. 1 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON'BLE COMMISSIONER OF INCOME TAX (APPEALS) - 24, MUMBAI, ('THE CIT(A)') ERRED IN UPHOLDING THE ACTION OF THE INCOME TAX OFFICER - 15 (1)(2), MUMBAI ('THE AO') IN RESPECT OF THE ADDITION OF RS.10,02,500 U/S 68 OF T HE INCOME TAX ACT, 1961 ('THE ACT), WITHOUT CONSIDERING THE FACT THAT THE C REDIT FROM M/S FINELINK SUPPLIER PVT. LTD WAS EXPLAINED. 2. THE APPELLANT PRAYS THAT THE AO BE DIRECTED TO DELETE THE ADDITION OF RS.10,02,500 MADE. WITHOUT PREJUDICE TO THE ABOVE GROUND, GROUND NO. 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON'BLE CIT(A) ERRED IN PASSING AN EX-PARTE ORDER EVEN WHEN THE SU BMISSIONS ALONG WITH THE PAPER BOOK WERE SUBMITTED ON THE ADJOURNED DATED I. E. AUGUST 30, 2019. 2. THE CIT(A) FURTHER ERRED IN NOT CONSIDERING TH E ADDITIONAL EVIDENCES FILED. 3. THE APPELLANT HUMBLY PRAYS THAT THE MATTER BE REMANDED TO THE AO WITH A DIRECTION TO CONSIDER THE ADDITIONAL EVIDENCES FILE D BEFORE THE HON'BLE CIT(A). AS EVIDENT THE ASSESSEE IS AGGRIEVED PRIMARILY BY C ONFIRMATION OF ADDITION OF UNEXPLAINED CASH CREDIT U/S 68 FOR RS.1 0.02 LACS. IN GROUND NO. 2, THE ASSESSEE IS AGGRIEVED BY THE FACT THAT IMPUGNED ORDER IS AN EX-PARTE ORDER AND A PLEA HAS BEEN RAIS ED FOR ANOTHER OPPORTUNITY TO ASSESSEE TO SUBSTANTIATE ITS CASE. 2. DRAWING ATTENTION TO GROUND NO.2, THE LD. AUTHOR IZED REPRESENTATIVE FOR ASSESSEE (AR), MS. HIRAL SEJPAL, SUBMITTED THAT LD. CIT(A) ERRED IN NOT CONSIDERING THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE DURING THE COURSE OF APPELLATE PROCEED INGS. THE LD. DR, SHRI AMIT PRATAP SINGH, SUBMITTED THAT THE ASSE SSEE REMAINED NEGLIGENT IN ATTENDING THE APPELLATE PROCEEDINGS. A FTER DUE 3 ITA NO.640 & 117/MUM/2020 M/S. ENKAY LIFE REALTORS PRIVATE LIMITED ASSESSMENT YEARS-2011-12 & 2012-13 CONSIDERATION OF MATERIAL ON RECORD, OUR ADJUDICATI ON TO THE SUBJECT MATTER OF APPEAL WOULD BE AS GIVEN IN SUCCEEDING PA RAGRAPHS. 3. AN ASSESSMENT WAS FRAMED AGAINST THE ASSESSEE FO R THE YEAR UNDER CONSIDERATION U/S 143(3) R.W.S. 147 ON 13/12/ 2018. THE REASSESSMENT PROCEEDINGS WERE TRIGGERED PURSUANT TO RECEIPT OF CERTAIN INFORMATION FROM INVESTIGATION WING THAT TH E ASSESSEE RECEIVED CREDIT OF RS.10.02 LACS FROM AN ENTITY NAM ELY M/S FINELINK SUPPLIERS PRIVATE LIMITED. SINCE THE ASSESSEE FAILE D TO PROVE THE GENUINENESS OF THE TRANSACTIONS AND CREDITWORTHINES S OF THE LENDER, THE SAID AMOUNT WAS ADDED TO THE INCOME OF THE ASSE SSEE. 4. ALTHOUGH THE ASSESSEE PREFERRED FURTHER APPEAL B EFORE LD. CIT(A), HOWEVER, AS EVIDENT FROM OPENING PARA OF TH E IMPUGNED ORDER, THE ASSESSEE FAILED TO ATTEND THE APPELLATE PROCEEDINGS. CONSEQUENTLY, THE ACTION OF LD. AO IN MAKING THE AD DITION WAS UPHELD. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEA L BEFORE US. 5. UPON PERUSAL OF ASSESSEES SUBMISSIONS DURING AP PELLATE PROCEEDINGS, WE FIND THAT THE ASSESSEE HAD FILED WR ITTEN SUBMISSIONS, PAPER-BOOK ALONG WITH PETITION FOR ADD ITIONAL EVIDENCES DURING THE COURSE OF APPELLATE PROCEEDING S. HOWEVER, THE SAME HAS REMAINED TO BE CONSIDERED BY ANY OF TH E LOWER AUTHORITIES. THEREFORE, THOUGH THE ASSESSEE REMAINE D NEGLIGENT IN ATTENDING APPELLATE PROCEEDINGS, HOWEVER, KEEPING I N VIEW THE PRINCIPLES OF NATURAL JUSTICE, WE DEEM IT FIT TO RE STORE THE MATTER BACK TO THE FILE OF THE LD. AO FOR RE-ADJUDICATION AFTER CONSIDERING THE ASSESSEES SUBMISSIONS AND EXPLANATION. THE ASSESSE E, IN TURN, IS 4 ITA NO.640 & 117/MUM/2020 M/S. ENKAY LIFE REALTORS PRIVATE LIMITED ASSESSMENT YEARS-2011-12 & 2012-13 DIRECTED TO SUBSTANTIATE HIS CASE FORTHWITH FAILING WHICH LD. AO SHALL BE AT LIBERTY TO PROCEED WITH RE-ADJUDICATION ON TH E BASIS OF MATERIAL ON RECORD. GROUND NO.2 STANDS ALLOWED FOR STATISTIC AL PURPOSES. 6. THE APPEAL STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 7. FACTS ARE PARI-MATERIA THE SAME IN AY 2012-13 WH EREIN THE ASSESSEE WAS SADDLED WITH SIMILAR ADDITION OF RS.25 .02 LACS U/S 68. THE ASSESSEE FAILED TO APPEAR BEFORE THE APPELL ATE AUTHORITIES WHICH RESULTED INTO CONFIRMATION OF THE ORDER OF LD . AO. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US WITH ID ENTICAL GROUNDS OF APPEAL. THEREFORE, FACTS BEING PARI-MATERIA THE SAM E, THE MATTER STANDS RESTORED BACK TO THE FILE OF LD. AO ON SIMIL AR LINES. THE APPEAL STANDS PARTLY ALLOWED FOR STATISTICAL PURPOS ES. 8. BOTH THE APPEALS STAND PARTLY ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 22 ND SEPTEMBER, 2020. SD/- SD/- (VIKAS AWASTHY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 22/09/2020 SR.PS:-JAISY VARGHESE > ?@AB A / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. $% ! / THE RESPONDENT 3. 1 ( ) / THE CIT(A) 4. 1 / CIT CONCERNED 5. 23$)4 , 4 , / DR, ITAT, MUMBAI 6. 3567 / GUARD FILE 5 ITA NO.640 & 117/MUM/2020 M/S. ENKAY LIFE REALTORS PRIVATE LIMITED ASSESSMENT YEARS-2011-12 & 2012-13 / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.