M/S. PAWAN KUMAR KUSHAL KUMAR, Khategaon V. THE ADDL.CIT- RANGE-1, Ujjain

ITA 690/IND/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5884 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 22-06-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 30-09-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESHPANDE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO.690/IND/2015 A.Y. : 2011-12 M/S. PAWAN KUMAR KUSHAL KUMAR, ACIT, RANGE 1, KHATEGAON VS UJJAIN APPELLANT RESPONDENT PAN NO. AABFP4175C A PPELLANT BY : SHRI S.S.DESHPANDE, CA RESPONDENT BY : SHRI MOHD.JAVED, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A), UJJAIN, DATED 01.07.2015 FOR THE ASSESSM ENT YEAR 2011-12. 2. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUND OF APPEAL:- DATE OF HEARING : 29 .0 6 20 16 DATE OF PRONOUNCEMENT : 29 .0 6 . 201 6 M/S.PAWAN KUMAR KUSHAL KUMAR, KHATEGAON VS. ADDL CI T, RANGE 1, UJJJAIN I.T.A.NO. 690/IND/2015 A.Y. 2 011-12 2 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIA(A) ERRED, THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 23 LAKHS BY NOT ACCEPTING THE GENUINENESS OF THE LOANS. THE APPELLANT HAS SATISFIED ALL THE THREE ELEMENTS TO PROVE THE GENUINENESS OF THE LOANS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM MERCHANT AND COMMIS SION AGENT. THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS 9,57,430/- WAS FILED ON 20-09-2011. THE AO MADE THE ADDITION OF RS. 23 LAKHS. ON ACCOUNT OF NON-ACCEPTA NCE OF GENUINENESS OF LOANS. DURING THE COURSE OF APPELLAT E PROCEEDINGS, THE ASSESSEE HAS FILED THE WRITTEN SUBM ISSIONS DATED 18.05.2015. THE ADDL. CIT HAS MADE THE ADDITI ON OF RS. 23 LAKHS ON ACCOUNT OF NON-ACCEPTANCE OF UNSECURED LOANS FROM THE FOLLOWING COMPANIES :- I) M/S. CREATIVE TECHOCHEM P.LTD. RS.3,50,000/- II) M/S. RONIMA FINANCE & INVESTMENT PVT.LTD. RS. 8,50,000/- III) M/S. NANO SECURITIES P. LTD. RS. 4,50,000/- IV) M/S. PARKSONS HOLDING P.LTD. RS. 6,50,000/- M/S.PAWAN KUMAR KUSHAL KUMAR, KHATEGAON VS. ADDL CI T, RANGE 1, UJJJAIN I.T.A.NO. 690/IND/2015 A.Y. 2 011-12 3 3 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CI T(A) HAS DISMISSED THE APPEAL. 5. THE LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE CONTENDED THAT THE ASSESSEE HAD FILED CONFIRMATIONS . THE AO MADE ENQUIRIES THROUGH DDIT. THE LD. DDIT SENT THE REPORT TO THE AO ON 24.3.2014. THE LD. AUTHORIZED REPRESENTAT IVE FOR THE ASSESSEE CONTENDED THAT THE COMPANIES HAVE MADE RTGS FROM THEIR BANK ACCOUNTS TO THE ASSESSEES BANK ACC OUNT AND ALL THE COMPANIES WERE HAVING HUGE FUNDS IN THEIR B ANK ACCOUNTS BEFORE ADVANCING LOAN TO THE ASSESSEE AND THAT TOO FOR NUMBER OF MONTH. THIS WILL BE EVIDENT FROM THE D OCUMENTS FILED BEFORE THE AO. THE LD. AUTHORIZED REPRESENTAT IVE FOR THE ASSESSEE CONTENDED THE ADDITION MAY BE DELETED AS A LL THE TRANSACTIONS WERE GENUINE. 6. THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON TH E ORDERS OF THE AUTHORITIES BELOW. 7. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. I FIND THAT THESE COMPANIES HAD SUBMITTED NECESSARY D ETAILS BEFORE THE DDIT, UJJAIN,( WHICH ARE ENCLOSED AT PAGE NO.1 TO 65), EXCEPT PARKSONS HOLDINGS PRIVATE LIMITED, ON A CCOUNT OF M/S.PAWAN KUMAR KUSHAL KUMAR, KHATEGAON VS. ADDL CI T, RANGE 1, UJJJAIN I.T.A.NO. 690/IND/2015 A.Y. 2 011-12 4 4 CHANGE OF ADDRESS, THE NOTICE BY DDIT COULD NOT BE SERVED TO THE COMPANY DDIT SUBMITTED THE REPORT STATING THAT THE FINANCIAL STATUS OF THE COMPANIES WAS VERY WEAK. THE BALANCE SHEET OF COMPANIES SHOWED THAT THERE WAS SUBSTANTIAL INTRODUCTION OF SHARE CAPITAL IN THE COMPANIES. INS PITE OF WEAK FINANCIAL POSITION OF THE COMPANIES, THE INTRODUCTI ON OF SHARE CAPITAL CREATED DOUBT. DURING THE COURSE OF ENQUIRY NONE OF THE DIRECTORS OF THE ABOVE COMPANIES WERE APPEARED. THEREFORE, IT WAS TAKEN THAT THE ASSESSEE FAILED TO ESTABLISH THE GENUINENESS, IDENTITY AND CREDITWORTHINESS. I FIND T HAT THIS MATTER REQUIRES VERIFICATION AT THE END OF THE AO. IN THE INTEREST OF JUSTICE AND FAIR PLAY, I RESTORE THE MA TTER BACK TO THE FILE OF AO WITH THE DIRECTION TO VERIFY THE IDEN TITY, CREDITWORTHINESS AND GENUINENESS IN THE CASES OF M/S . CREATIVE TECHOCHEM PVT.LTD., M/S. RONIMA FINANCE & INVESTMENT PRIVATE LIMITED AND M/S. NANO SECURITIES PRIVATE LIMITED AND DECIDE THE MATTER AFRESH AS PER LAW. I C ONFIRM THE ADDITION IN RESPECT OF M/S. PARKSONS HOLDING PRIVAT E LIMITED TO THE EXTENT OF RS. 6,50,000/-. I DIRECT ACCORDING LY. M/S.PAWAN KUMAR KUSHAL KUMAR, KHATEGAON VS. ADDL CI T, RANGE 1, UJJJAIN I.T.A.NO. 690/IND/2015 A.Y. 2 011-12 5 5 8. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED FOR STA TISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 29 TH JUNE, 2016, SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 29 TH JUNE, 2016. CPU*