TRANCEFX STUDIOS P.LTD, MUMBAI V. ITO 7(3)(2), MUMBAI

ITA 6933/MUM/2013

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7193 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 06-02-2017
• Assessment Year: 2003-2004
• Appeal Filed On: 28-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M V RAJGURUDR
• Keywords: Reasonable cause
• Section: 142(1); 133(6); 147; 68; 148; 144

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, E MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.6933/MUM/2013 ASSESSMENT YEAR: 2003-04 M/S TRANCEFX STUDIOS PVT. LTD. D.Y. PATIL BLDG. OPP. MIG COLONY, ADARSH NAGAR, WORLI, MUMBAI-400025 / VS. INCOME TAX OFFICER-7(3)(2), MUMBAI ( !'# $ /ASSESSEE) ( / REVENUE) PAN. NO . AABCT3875E % & $ ' / DATE OF HEARING : 07/05/2018 & $ ' / DATE OF ORDER: 07/05/2018 !'# $ ! / ASSESSEE BY NONE ! / REVENUE BY SHRI M.V. RAJGURU-DR ITA NO. 6933/MUM/2013 M/S TRANCFEX STUDIOS PVT LTD. 2 / O R D E R PER JOGINDER SINGH(JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 13/09/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, CONFIRMING THE ADDITION OF RS.55 LAKHS ON ACCOUNT O F SHARE APPLICATION MONEY RECEIVED BY THE ASSESSEE COMPANY. 2. DURING HEARING, NONE WAS PRESENT FOR THE ASSESSEE, IT IS NOTED THAT ASSESSEE FILED THIS APPE AL ON 28/11/2013 AND WAS FIXED FOR HEARING FOR 27/04/2015 AS IS EVIDENT FROM ORDER-SHEET ENTRY DATED 16/02/2015. ON 27/04/2015, THE APPEAL WAS ADJOURNED TO 05/05/2015. ON 05/05/2015 AGAIN THE APPEAL WAS ADJOURNED. ON 19/12/2016 NONE APPEARED FOR THE ASSESSEE AND THUS REGISTERED AD NOTICE WAS ISSUED FOR 06/02/2017. ON THAT DATE ALSO, THE ASSESSEE SOUGHT ADJOURNMENT VIDE LET TER DATED 03/02/2017 AND THE APPEAL WAS ADJOURNED TO 28/06/20 17. ON THAT DATE ALSO, AT THE REQUEST OF THE ASSESSEE, THE APPEAL WAS ADJOURNED TO 17/10/2017. ON THAT DATE ALSO, THE ASSESSEE REQUESTED FOR ADJOURNMENT AND THE APPEAL W AS ADJOURNED TO 04/12/2017. ON THAT DATE ALSO, AT THE REQUEST OF THE ASSESSEE, THE APPEAL WAS ADJOURNED. ON 07/05 /2018, ITA NO. 6933/MUM/2013 M/S TRANCFEX STUDIOS PVT LTD. 3 AT THE TIME OF HEARING, THE ASSESSEE NEITHER PRESEN TED ITSELF NOR MOVED ADJOURNMENT PETITION. IT SEEMS THAT EITHE R THE ASSESSEE IS NOT INTERESTED TO PURSUE ITS APPEAL OR DELIBERATELY AVOIDING ITS APPEARANCE, THEREFORE, WE HAVE NO OPTION BUT TO PROCEED EX-PARTE, QUA THE ASSESSEE AN D TEND TO DISPOSE OF THIS APPEAL ON THE BASIS OF MATERIAL AVA ILABLE ON RECORD. ON THE OTHER HAND, THE LD. DR, SHRI M.V. RA JGURU, STRONGLY DEFENDED THE ASSESSMENT ORDER AS WELL AS T HE IMPUGNED ORDER. IT WAS PLEADED THAT EVEN BEFORE THE LD. ASSESSING OFFICER, THE ASSESSEE DID NOT MAKE EFFECT IVE REPRESENTATION AND THUS THE ASSESSMENT WAS FRAMED E X- PARTE U/S 144 OF THE ACT. 2.1. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE F ACTS, IN BRIEF, ARE THAT THE CASE OF THE ASSESSEE WAS REOPEN ED U/S 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE AC T) FOR WHICH NOTICE U/S 148 DATED 25/03/2010 WAS SERVED UP ON THE ASSESSEE, THEREAFTER, NOTICES U/S 142(1) DATED 15/05/2010 AND 20/10/2010 WERE SERVED UPON THE ASSESSEE. THE ASSESSEE, THEREAFTER, APPEARED AND ME RELY FURNISHED COMPUTATION OF TOTAL INCOME, AUDIT REPORT , BALANCE ITA NO. 6933/MUM/2013 M/S TRANCFEX STUDIOS PVT LTD. 4 SHEET AS ON 31/3/2003 AND THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDING 31/03/2003. THE ASSESSEE WAS ASKED TO F URNISH THE DETAILS SUCH AS ROI, DETAILS WITH INCREASE IN T HE SHARE CAPITAL, CONFIRMATIONS OF OUTSTANDING LOAN AND LIAB ILITIES, COPY OF THE BANK STATEMENT, DETAILS OF FEES DURING THE YEAR AND OTHER NECESSARY DETAILS. THE ASSESSEE DID NOT F ILED FURTHER DETAILS FOR WHICH THE ASSESSEE WAS ASKED TO FURNISH THE REQUISITE DETAILS ON OR BEFORE 16/12/2010. HE W AS APPRAISED THAT IF NO COMPLIANCE IS MADE THEN THE ASSESSMENT WOULD BE COMPLETED U/S 144 OF THE ACT. T HE ASSESSEE DID NOT FILE REQUISITE DETAILS AND THUS TH E ASSESSMENT WAS COMPLETED U/S 144 OF THE ACT. IT WAS NOTICED FROM THE AUDIT REPORT AND BALANCE SHEET/PRO FIT & LOSS ACCOUNT AS ON 31/03/2003 THAT THE ASSESSEE DEC LARED LOSS OF RS.24,154/- AND FURTHER THE ASSESSEE INTROD UCED AN AMOUNT OF RS. 9,99,700/- AS SHARE CAPITAL AND RS.55 LAKH AS SHARE APPLICATION MONEY, UNSECURED LOAN OF RS.20,12,377/- AND RS. 52,30,885/- AS CURRENT LIABI LITY DURING THE YEAR. IN THE ABSENCE OF ANY EXPLANATION AND FURTHER DETAILS, THE ASSESSING OFFICER MADE THE ADD ITION OF ITA NO. 6933/MUM/2013 M/S TRANCFEX STUDIOS PVT LTD. 5 THESE AMOUNTS TO THE TOTAL INCOME OF THE ASSESSEE A S UNDISCLOSED INCOME. 2.2. ON APPEAL BEFORE THE LD. COMMISSIONER OF INCO ME TAX (APPEAL) IN PARA NO.2, IT HAS BEEN OBSERVED THA T NO REQUISITE DETAILS WERE FURNISHED BY THE ASSESSEE AN D IN PARA 3.2. IT HAS BEEN OBSERVED THAT NO RETURN WAS FILED BY THE ASSESSEE IN RESPONSE TO NOTICE U/S 148 DATED 25/03/ 2010. IT WAS ALSO FOUND THAT NO REASONABLE CAUSE FOR NOT FILING THE RETURN WAS MENTIONED BY THE ASSESSEE. BEFORE THE LD . COMMISSIONER OF INCOME TAX (APPEAL), THE ASSESSEE F ILED ADDITION EVIDENCE UNDER RULE-46A ON 14/11/2011 WITH A REQUEST TO ADMIT THE SAME. THE FIRST APPELLATE AUTH ORITY ADMITTED THE SAME AND REMANDED BACK TO THE ASSESSIN G OFFICER FOR THE REMAND REPORT. THE LD. ASSESSING OF FICER SUBMITTED THE REMAND REPORT, WHICH HAS BEEN REPRODU CED IN PARA 4 ONWARDS OF THE IMPUGNED ORDER. THE ASSESSEE ALSO FURNISHED CERTAIN DOCUMENTS AS HAS BEEN MENTIONED A T PAGE-4 OF THE IMPUGNED ORDER. IT IS NOTED THAT BEFO RE THE LD. COMMISSIONER OF INCOME TAX (APPEAL), THE ASSESSEE M ADE A CLAIM THAT SHARE CAPITAL OF RS.9,99,700/- WAS CONTR IBUTED DURING THE FINANCIAL YEAR 2002-03 BY SHRI AJINKYA D . PATIL, ITA NO. 6933/MUM/2013 M/S TRANCFEX STUDIOS PVT LTD. 6 ONE OF THE DIRECTOR OUT OF WHICH A SUM OF RS.4,59,7 00/- WAS CONTRIBUTED BY CASH AND THE OPENING BALANCE OF RS.5,40,000/- OF AJINKYA PATIL WAS TRANSFERRED AND TREATED AS SHARE CAPITAL AND FURTHER CONTRIBUTION OF RS.3,5 3,000/- WAS TRANSFERRED FROM AJINKYA PATIL (DIRECTORS CURRE NT ACCOUNT) TO THE SHARE CAPITAL OF THE ASSESSEE COMPA NY. IT WAS FURTHER CLAIMED THAT THE ASSESSEE COMPANY CONFI RMED THAT RS.1,06,700/- WAS CONTRIBUTED BY CASH BY AJINK YA PATIL. WITH RESPECT TO UNSECURED LOAN OF RS.20,12,3 77/-, THE ASSESSEE WAS ASKED TO FILE IDENTITY/GENUINENESS AND CREDITWORTHINESS OF UNSECURED LOANS WITH DETAILS LI KE NAME, ADDRESS, PAN, AMOUNT, MODE OF PAYMENT AND RE-PAYMEN T ETC. INFORMATION WAS CALLED FROM ALL UNSECURED LOAN ERS U/S 133(6) OF THE ACT AND THEY WERE ASKED TO FILE THE N ECESSARY DETAILS VIDE LETTER DATED 03/01/2013. NO SUCH DETAI LS WERE FILED BY THE ASSESSING OFFICER. WITH REGARD TO MR. VIVEK S. SALGAONKAR, IT WAS CLAIMED THAT THE NECESSARY DETAI LS WERE DESTROYED IN FLOOD. WITH RESPECT TO RAJKUMAR P. NAG ORI, MS. PUNAM H. GOYAL, HARISH J. GOYAL, NOTICES U/S 133(6) WAS SERVED ON THE LAST KNOWN ADDRESS. HOWEVER, THE PRES ENT OCCUPANT OF THE PREMISES MR. KAMAL KUMAR AGARWAL ITA NO. 6933/MUM/2013 M/S TRANCFEX STUDIOS PVT LTD. 7 CONTENDED THAT HE HAS NO CONTACT WITH THEM. SO FAR AS, THE SHARE APPLICATION MONEY AMOUNTING TO RS.55 LAKHS, A DDED BY THE LD. ASSESSING OFFICER, THE CLAIM OF THE ASSE SSEE BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL) WAS THA T IT WAS A CREDIT BALANCE FROM PARTNERSHIP FIRM M/S TRAN CEFX. THE ASSESSEE WAS ASKED TO FURNISH THE SUPPORTING DOCUMENTS TO SHOW THAT SUCH PARTNERSHIP FIRM TRANSF ERRED THE IMPUGNED AMOUNT TO THE ASSESSEE WHICH WAS TREAT ED AS SHARE APPLICATION MONEY. THE ASSESSEE EVEN AFTER AV AILING SUFFICIENT TIME DID NOT FURNISH THE DETAILS. IN TH E ABSENCE OF ANY SUPPORTING DOCUMENT LIKE RETURN OF INCOME FILED ALONG WITH PROFIT & LOSS ACCOUNT, BALANCE SHEET AND THUS IN THE ABSENCE OF SUCH DOCUMENTS, THE ADDITION WAS UPHELD. AS MENTIONED EARLIER, BEFORE THIS TRIBUNAL ALSO, RIGHT FROM 27/04/2015 (EFFECTIVE DATE OF HEARING) AND TILL TOD AY I.E. 07/05/2018 EITHER THE ASSESSEE DID NOT APPEAR OR SO UGHT ADJOURNMENTS ONLY AND NO DOCUMENTARY EVIDENCE WAS F ILED TO SUPPORT ITS CLAIM. THE CONDITIONS ENSHRINED IN S ECTION 68 OF THE ACT AND THE ONUS CAST UPON THE ASSESSEE WAS NEVER DISCHARGED BY THE ASSESSEE. THUS, THE STAND OF THE LD. ITA NO. 6933/MUM/2013 M/S TRANCFEX STUDIOS PVT LTD. 8 COMMISSIONER OF INCOME TAX (APPEAL) IS AFFIRMED, RE SULTING INTO DISMISSAL OF APPEAL OF THE ASSESSEE. FINALLY, THE APPEAL OF THE ASSESSEE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. DR AT THE CONCLUSION OF HEARING ON 07/05/2018. SD/- SD/- ( MANOJ KUMAR AGGARWAL ) (J OGINDER SINGH) '!# / ACCOUNTANT MEMBER $!# /JUDICIAL MEMBER % MUMBAI; ) DATED : 07/05/2018 F{X~{T? P.S/. . . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. +,- / THE APPELLANT (RESPECTIVE ASSESSEE) 2. ./,- / THE RESPONDENT. 3. 0 0 1$ ( + ) / THE CIT, MUMBAI. 4. 0 0 1$ / CIT(A)- , MUMBAI, 5. 34 .$! , 0 +' ! 5 , % / DR, ITAT, MUMBAI 6. 6' 7% / GUARD FILE. ! / BY ORDER, /3+$ .$ //TRUE COPY// /! (DY./ASSTT. REGISTRAR) , % / ITAT, MUMBAI