Balaji Steel Rolling Mills Private Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad

ITA 699/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5509 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 13-09-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 07-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: KISHORE KUMAR KABRA
• Section: 68; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.699/HYD/2019 ASSESSMENT YEAR: 2015-16 BALAJI STEEL ROLLING MILLS PRIVATE LIMITED / COMPANY, 61/A 3 RD FLOOR, SURYODAYA COMPLEX, M.G.ROAD, SECUNDERABAD. PAN NO.AAACB8286C VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI KISHORE KUMAR KABRA, AR REVENUE BY : SRI P. SURESH, DR DATE OF HEARING: 13/09/2021 DATE OF PRONOUNCEMENT: 15/09/2021 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2015-16 AGAIN ST THE ORDER OF THE CIT (A)-1, HYDERABAD, DATED 06.02.2019 . 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE CO MPANY, ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADIN G OF STEEL, E-FILED ITS RETURN OF INCOME FOR A.Y. 2015-16 ON 30 .10.2015 ADMITTING LOSS OF RS. (-) 3,52,14,986/- UNDER NORMAL PROVISIO NS AND BOOK LOSS OF RS.(-) 3,61,28,736/- UNDER SEC.115JB OF THE ACT. 3. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HA S SHOWN AN ITA NO 699 OF 2019 BALAJI STEEL ROLLING MILLS (P) LTD., 2 AMOUNT OF RS.15 LACS AS RECEIVED FROM ONE SRI MANI SH GUPTA, PAN NO.ABRPG3344F. THE ASSESSEE WAS ASKED TO FURNISH T HE PROOF OF IDENTITY, GENUINENESS, AND CREDITWORTHINESS OF SRI MANISH GUPTA ALONG WITH HIS CONFIRMATION LETTER. IN RESPONSE TO THE SAME, THE ASSESSEE SUBMITTED CONFIRMATION LETTER FROM ONE SRI MANISH KUMAR GUPTA STATING THAT THOUGH HIS NAME IS MANISH KUMAR GUPTA, HIS NAME WAS WRONGLY MENTIONED BY THE ASSESSEE AS MANI SH GUPTA. HOWEVER, THE ASSESSING OFFICER NOTICED THAT THE PAN NOS. OF MANISH GUPTA AND MANISH KUMAR GUPTA ARE TOTALLY DIFFERENT AND THEREFORE, THERE ARE TWO DIFFERENT PERSONS. THUS, THE ASSESSI NG OFFICER HELD THAT ASSESSEE HAS FAILED TO PROVE THE IDENTITY OF T HE CREDITOR AND THE GENUINENESS OF THE TRANSACTION AND ALSO CREDITWORTH INESS OF MANISH GUPTA. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFO RE THE CIT(A), WHO CONFIRMED THE ORDER OF THE ASSESSING OFFICER AND TH E ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FO LLOWING GROUNDS OF APPEAL : 1. THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) IS ERRONEOUS IN LAW AND ON FACTS OF THE C ASE. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED I N CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN T REATING THE UNSECURED LOAN OF RS.15,00,000/- AS UNEXPLAINED CRE DIT UNDER SECTION 68 OF THE ACT, FOR UNTENABLE REASONS WITHOU T APPRECIATING THE FACTS OF THE CASE. 3. IT IS SEEN THAT THE ASSESSEE HAS NOT APPEARED BE FORE THE CIT(A) AND THEREFORE, THE CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. THEREFORE, IN THE INTEREST OF J USTICE, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF A SSESSING OFFICER WITH A DIRECTION TO THE ASSESSEE TO PROVIDE ALL THE NECESSARY EVIDENCE BEFORE THE ASSESSING OFFICER AND THE ASSES SING OFFICER SHALL, THEREAFTER, COMPLETE THE ASSESSMENT IN ACCOR DANCE WITH THE LAW. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL B E GIVEN A FAIR OPPORTUNITY OF HEARING AND ASSESSEE ALSO SHALL COOP ERATE WITH THE ITA NO 699 OF 2019 BALAJI STEEL ROLLING MILLS (P) LTD., 3 ASSESSING OFFICER BY FILING ALL THE RELEVANT DETAIL S FOR EARLY COMPLETION OF THE ASSESSMENT PROCEEDINGS. 4. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH SEPTEMBER, 2021. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 15 TH SEPTEMBER, 2021. TYNM COPY TO: S.NO ADDRESSES 1 BALAJI STEEL ROLLING MILLS PRIVATE LIMITED / COMPAN Y, 61/A 3 RD FLOOR, SURYODAYA COMPLEX, M.G.ROAD, SECUNDERABAD. 2 THE DCIT, CIRCLE 1(2), HYDERABAD. 3 CIT (A)-1, HYDERABAD 4 PR. CIT 1,HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER