M/s. Metro Stocks & Shars P. Ltd, Cochin V. The ACIT, Ernakulam

ITA 655/COCH/2008

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5185 (ITAT-COCHIN)
• Duration Of Justice: 14 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 1992-1993
• Appeal Filed On: 12-05-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Depreciation; Principle of natural justice
• Section: 6; 5(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri George George K., Judicial Member and Shri Laxmi Prasad Sahu, Accountant Member ITA No. 655/Coch/2008 (Assessment Year: 1992-93 M/s. Metro Stocks & Shares Pvt. Ltd. C/o. V.M. Thomas No. 14, Vasantha Avenue MRC Nagar, Chennai 600028 Vs. ACIT, Circle - 3 Division – II, Ernakulam PAN – Not Available Appellant Respondent Appellant by: Withdrawal Application Respondent by: Smt. J.M. Jamuna Devi, Sr. D.R. Date of Hearing: 21.06.2022 Date of Pronouncement: 21.06.2022 O R D E R Per: L.P. Sahu, A.M. This is an appeal filed by the assessee against the order of the learned CIT(A)-1, Calicut dated09.01.2008 for AY 1992-93. 2. The assessee has raised the following grounds of appeal: - “1. The order of the learned Commissioner of Income Tax (Appeals) and the learned Assessing Officer is contrary to the facts and circumstances of the case and is against the principles of equity and natural justice. 2. In respect of unexplained credits Rs.22,08,896/- the learned Commissioner of Income Tax (Appeals) has erred in sustaining the addition to the extent of Rs.2,37,701l- in respect of credit in Co chin books. The Learned CIT (Appeals) has not considered the addition in respect of credits in Chennai Books Rs.lO,43,500/- and Interest Rs.l,18,875/- . The income assessed under the head other sources were in the nature of (a) Payments for shares purchased or (b) deposits/loans from parties which has been repaid by Cheque in the same or subsequent year. ITA No. 655/Coch/2008 M/s. Metro Stocks & Shares Pvt. Ltd. 2 3. The learned Commissioner of Income Tax (Appeals) has also erred with reference to addition of Rs.5,70,643/-. The employee Mr.K.P.Murali, has given an affidavit stating that all the transactions entered into in his name are genuine and that he has made investment of monies given to him by his parents received on their retirement and that these transactions are not in any way connected with Company's own trading. 4. The learned Commissioner of Income Tax (Appeals) has erred in sustaining the disallowance of depreciation on assets purchased. The payment made for the assets has been debited to the Advances ledger in Chennai books and subsequently transferred to Cochin account of the assessee's assets. Copies of the bank statement evidencing payment were submitted. This proves that the assets were in fact purchased during the year and depreciation should have been allowed. 5. The learned Commissioner of Income Tax (Appeals) has erred in sustaining the addition of Rs.3,42,720/- to the value of closing stock. A perusal of the statement of valuation of closing stock shows that the stocks have been valued on the basis of cost or market value whichever less is. The rates adopted by the Special auditor as "correct rate" are astronomical and how the same has been arrived at is not known. The share value throughout the year was nowhere near that rate.” 3. At the time of hearing it was noticed that the assessee has moved an application dated 21.06.2022 for withdrawal of the application on the ground that the issue has been settled under the Vivad-se-Vishwas Scheme, 2020. The assessee has also filed Form-5 issued by the Principal Commissioner of Income Tax, Kochi-1. The withdrawal of appeal has not been objected by the learned D.R. 4. Since the issue has been settled under the Vivad-se-Wishwas Scheme, 2020 and Revenue has issued order under Section 5(2) read with Section 6 of the Direct Tax Vivad Se Vishwas Rules, 2020 the appeal filed by the assessee is dismissed as withdrawn. Dictated and pronounced in the open Court on 21 st June, 2022. Sd/- Sd/- (George George K.) (Laxmi Prasad Sahu) Judicial Member Accountant Member Cochin, Dated: 21 st June, 2022 ITA No. 655/Coch/2008 M/s. Metro Stocks & Shares Pvt. Ltd. 3 Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) -1, Calicut 4. The CIT - Kochi 5. The DR, ITAT, Cochin 6. Guard File By Order //True Copy// Assistant Registrar ITAT, Cochin n.p.