M/S TRUE VISION EDUCATIONS PVT. LTD., Khandwa V. THE ITO, Khandwa

ITA 641/IND/2015

• Counselvise Citation: 64122714 RSA 2015
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S N AGRAWAL
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

M/S TRUE VISION EDUCATION ITA 641/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE BEFORE SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 641/IND/2015 A.Y. 2010-11 M/S TRUE VISION EDUCATIONS PVT. LTD KHANDWA ::: APPELLANT VS INCOME TAX OFFICER KHANDWA ::: RESPONDENT APPELLANT BY SHRI S.N. AGRAWAL RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 7.12.2015 DATE OF PRONOUNCEMENT 7.12.2015 O R D E R THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 30.4.2 015. M/S TRUE VISION EDUCATION ITA 641/IND/2015 2 2. THE ONLY GROUND TAKEN BY THE ASSESSEE IN THIS APPEAL IS THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN MAINTAIN ING THE ADDITION OF RS. 3,90,000/- MADE BY ASSESSING OFFI CER ON ACCOUNT OF SHARE APPLICATION MONEY TREATING THE SAME AS OUT OF UNEXPLAINED SOURCE OF INVESTMENT MADE THROUG H APPLICANTS. 3. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE RECEIVED SHARE APPLICATION MONEY FROM SHRI ISHWAR BHAI DAYABHAI PATEL RS. 90,000/-, SMT. NEELAM HINDUJA RS.1,20,000/- AND SHRI INDRAJEET SINGH RAJPAL RS. 1,80,000/- TOTALING TO RS. 3,90,000/-. THE ASSESSING OFFICER DOUBTED THE CAPACITY OF THE SHARE APPLICANTS AND AFTER RECORDING THE STATEMENTS OF THESE PERSONS, CONC LUDED THAT THESE PERSONS HAD NO CAPACITY TO INVEST IN THE S HARE APPLICATION OF THE ASSESSEE COMPANY. HE, THEREFORE, TR EATED THE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE AND MADE AN ADDITION OF RS.3,90,000/- IN THE HANDS OF THE ASSESS EE. M/S TRUE VISION EDUCATION ITA 641/IND/2015 3 4. ON APPEAL, THE LEARNED CIT(A) HELD THAT THE ASSESSEE DID NOT FILE ANY EVIDENCE TO PROVE THAT THE ABOVE SHARE APPLICANTS HAD EVER FILED THE RETURN OF INCOME ALTHOUG H ALL THE THREE ARE STATED TO HAVE THE PAN NUMBERS. THE LEA RNED CIT(A) ALSO OBSERVED THAT ALL THESE PERSONS HAD RURAL BACKGROUND AND SMALL BUSINESS AND AGRICULTURE LAND BASE. HE ALSO OBSERVED THAT THESE PERSONS HAD NO KNOWLEDGE O F SHARES AND INVESTMENT THEREIN. IN THIS VIEW OF THE MAT TER, THE LEARNED CIT(A) DID NOT FIND ANY FORCE IN THE APPE AL AND DISMISSED THE SAME. NOW, THE ASSESSEE IS IN APPEAL BEFO RE ME. 5. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE SHOULD BE PROVIDED AN OPPORTUNITY TO PROVE THE CAPACITY OF THE SHARE APPLICANT S. HE ALSO UNDERTOOK TO FILE ALL THE RELEVANT DETAILS INCL UDING THE BANK ACCOUNTS OF SHARE HOLDERS. HOWEVER, THE LEARN ED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. M/S TRUE VISION EDUCATION ITA 641/IND/2015 4 6. AFTER CONSIDERING THE ARGUMENTS OF THE PARTIES, I RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFI CER FOR DECIDING THE SAME DE NOVO. THE ASSESSEE IS ALSO DIREC TED TO PRODUCE ALL THE RELEVANT DOCUMENTS INCLUDING THE BANK ACCOUNTS OF THESE THREE SHARE HOLDERS FOR VERIFICATION AND AFTER EXAMINING ALL THESE DOCUMENT, THE ASSESSING OFFI CER WILL DECIDE AS TO WHETHER IT IS A FIT CASE TO BE PROCE EDED WITH SECTION 68 OF THE ACT. THE ASSESSING OFFICER S HALL PROVIDE AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 7 TH DECEMBER, 2015 SD (B.C. MEENA) ACCOUNTANT MEMBER 7 TH DECEMBER, 2015 M/S TRUE VISION EDUCATION ITA 641/IND/2015 5 DN/-