BATS APPAERLS LTD, MUMBAI V. ASST CIT CIR 8(3) (OSD), MUMBAI

ITA 7017/MUM/2010

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5843 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-03-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 11-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K SAHU
• Assessee Lawyers: S C TIWARINATASHA MANGAT
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B B ENCH, MUMBAI , , ! '# $ $ $ $ , % && '# ' BEFORE SHRI N.K. BILLAIYA, AM AND SHRI SANJAY GAR G, JM ./ I.T.A. NO. 7017/MUM/2010 ( ( ( ( ( / ASSESSMENT YEAR : 2006-07 M/S. BATS APPARELS LTD., UNIT NO. 110-114, BLDG NO. 4, MITTAL INDUSTRIAL ESTATE, MAROL, ANDHERI (E), MUMBAI-400 098 / VS. THE ACIT, CIRCLE 8(3)(OSD), AAYAKAR BHAVAN, MUMBAI-400 020 #) ! ./ %* ./ PAN/GIR NO. : AABCB 9527B ( )+ / APPELLANT ) .. ( ,-)+ / RESPONDENT ) )+ . / APPELLANT BY: SHRI S.C. TIWARI NATASHA MANGAT ,-)+ / . / RESPONDENT BY: SHRI R.K. SAHU / 01! / DATE OF HEARING :25.03.2014 23( / 01! / DATE OF PRONOUNCEMENT :28.03.2014 '4 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST T HE ORDER OF THE LD. CIT(A)-18, MUMBAI DT.09.08.2010 PERTAINING TO A.Y. 2006-07. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE L D. CIT(A) ERRED IN CONFIRMING THE ADDITION OF UNSECURED LOAN OF RS. 60 LAKHS. ITA NO. 7017/M/2010 2 3. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PRO CEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS REC EIVED FOLLOWING AMOUNTS AS UNSECURED LOANS DURING THE YEAR. S. NO. NAME OF THE PARTY AMOUNT RS. 1. KANTADEVI MITTAL 4,00,000/- 2. RATIWIK MERCANTILE 60,00,000/- 3. WALSINGHAM HIGH SCHOOL 28,60,000/- TOTAL 92,60,000/- 4. THE ASSESSEE WAS ASKED TO PROVIDE CONFIRMATIONS. HOWEVER, NO DETAILS WERE FURNISHED. THE AO WAS OF THE FIRM BEL IEF THAT AS THE ASSESSEE HAS FAILED TO PROVIDE THE GENUINENESS OF THE TRANSA CTION, CREDIT WORTHINESS AND IDENTITY OF THE PERSON, HE PROCEEDED BY ADDING RS. 92.60,000/- AS UNEXPLAINED CASH CREDIT U/S. 68 OF THE ACT. 5. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. C IT(A). THE ASSESSEE STRONGLY SUBMITTED THAT THE TRANSACTIONS W ITH THE THREE PARTIES WERE SUPPORTED BY CONFIRMATION LETTERS ALONGWITH PA N DETAILS. THE ASSESSEE ALSO SUBMITTED RELEVANT EXTRACT OF BANK ST ATEMENT OF ITSELF AND THE PARTIES. THE LD. CIT(A) TRANSMITTED THE STATEM ENTS AND THE DETAILS TO THE AO UNDER RULE 46A. THE AO IN HIS REMAND REPORT DT. 4.11.2009 OBJECTED TO THE ADMISSION OF THE ADDITIONAL EVIDENC E. THE LD. CIT(A) ACCEPTED THE GENUINENESS OF THE CREDITS IN THE NAME OF KANTADEVI MITTAL RS. 4,00,000/- AND WALSINGHAM HIGH SCHOOL RS. 28.60 LAKHS BUT CONFIRMED THE ADDITION OF RS. 60 LAKHS HOLDING THAT ALTHOUGH THE ASSESSEE HAS GIVEN ITS PAN BUT HAS NOT PRODUCED THE COPY OF INCOME TAX RETURN OR ANY OTHER EVIDENCE AS PROOF OF CREDIT WORTHINESS. ITA NO. 7017/M/2010 3 6. AGGRIEVED BY THIS, THE ASSESSEE IS BEFORE US. T HE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO THE CONFIRMATIO N LETTER OF RATIWIK MERCANTILE CO. AND POINTED OUT THAT THE TRANSACTION S HAVE BEEN DONE BY A/C PAYEE CHEQUE AND THE SAID LOAN WAS REPAID BACK THROUGH A/C PAYEE CHEQUE. THE LD. COUNSEL ALSO SUBMITTED THE COPY OF THE BANK STATEMENTS IN SUPPORT OF ITS CLAIM. IT WAS EXPLAINED THAT THE ASSESSEE WAS AVAILING CREDIT FACILITIES FROM VIJAYA BANK, OVERSEAS BRANCH , NARIMAN POINT, MUMBAI AND PUNJAB NATIONAL BANK, NEHRU PLACE , NEW DELHI. IT WAS FURTHER SUBMITTED THAT COMPANY HAD TO PAY OUTSTANDI NG OF PACKING CREDIT TO VIJAYA BANK TO THE TUNE OF RS. 60 LAKHS . ALTHOU GH THE COMPANY HAD AVAILABLE OVERDRAFT LIMIT IN PUNJAB NATIONAL BANK, NEW DELHI. BUT THE ASSESSEE WAS NOT ABLE TO PAY VIJAYA BANK THROUGH PU NJAB NATIONAL BANK THEREFORE THE COMPANY HAD TAKEN SHORT TERM LOAN FR OM RITWIK MERCANTILE BANK IN MUMBAI TO THE TUNE OF RS,. 60,00,000/- WHIC H WAS DEPOSITED IN VIJAYA BANK, MUMBAI AND THE REPAYMENT OF LOAN TO RI TWIK MERCANTILE BANK WAS DONE THROUGH PUNJAB NATIONAL BANK, NEW DEL HI. IN SUPPORT OF HIS CONTENTION, THE LD. COUNSEL SUBMITTED THE NECES SARY BANK STATEMENT. 7. PER CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE FINDINGS OF THE LOWER AUTHORITIES. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND CAR EFULLY PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIA L EVIDENCE BROUGHT ON RECORD BEFORE US. APPARENTLY, THE TRANSACTIONS HAV E BEEN DONE THROUGH BANKING CHANNELS WHICH ARE REFLECTED IN THE BANK ST ATEMENT SUBMITTED BEFORE US . HOWEVER WE FIND THAT THESE TRANSACTIONS HAVE NOT BEEN VERIFIED BY THE REVENUE AUTHORITIES PROPERLY IN THE LIGHT OF THE FACTS STATED BEFORE US. THEREFORE , IN THE INTEREST OF JUSTICE AND FAI R PLAY, WE RESTORE THIS ISSUE BACK TO THE FILES OF THE AO. THE ASSESSEE IS DIREC TED TO FILE ALL THE DETAILS ITA NO. 7017/M/2010 4 IN SUPPORT OF ITS CLAIM ALONGWITH THE BANK STATEMEN TS WHICH ARE FILED BEFORE US. THE AO IS DIRECTED TO VERIFY THE TRANS ACTIONS THROUGH THE BANK STATEMENT IN THE LIGHT OF THE EXPLANATION GIVEN BY THE ASSESSEE NECESSITATING THE CIRCUMSTANCES TO ENTER THESE TRAN SACTIONS AND , IF SATISFIED , THE AO IS DIRECTED TO DELETE THE ADDITI ON OF RS. 60,00,000/-. NEEDLESS TO MENTION THE AO IS EXPECTED TO GIVE A RE ASONABLE AND SUFFICIENT OPPORTUNITY TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MARCH.2014 . '4 / 3( ! 5 6'7 28.3.2014 3 / & SD/- SD/- (SANJAY GARG ) (N.K. BILLAIYA) '# /JUDICIAL MEMBER ! '# / ACCOUNTANT MEMBER MUMBAI; 6' DATED 28.3.2014 . . ./ RJ , SR. PS '4 '4 '4 '4 / // / ,0 ,0 ,0 ,0 8(0 8(0 8(0 8(0 / COPY OF THE ORDER FORWARDED TO : 1. )+ / THE APPELLANT 2. ,-)+ / THE RESPONDENT. 3. 9 ( ) / THE CIT(A)- 4. 9 / CIT 5. :& ,0 , , / DR, ITAT, MUMBAI 6. &; < / GUARD FILE. '4 '4 '4 '4 / BY ORDER, -0 ,0 //TRUE COPY// = == = / > > > > % % % % (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI