M/s Bagora Developers P Ltd , Indore V. The AIT OSD , Indore

ITA 73/Ind/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8340 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 18-03-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 148; 271(1)(c); 234B

Judgement Text

ITA No.73/ Ind/ 2021 A.Y. 2011-12 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT MEMBER (Conducted through Virtual Court) ITA No.73/Ind/2021 Assessment Year: 2011-12 M/s Bagora Developers Pvt. Ltd., vs. ACIT (OSD), Indore. 34, Revenue Nagar, Indore. - 452001. [PAN – AAECB 6424 E] (Appellant) (Respondent) Appellant by : None Respondent by : Shri Harshit Bari, D.R. Date of hearing : 14.06.2022 Date of pronouncement : 12.07.2022 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER : This appeal is filed by the assessee against the order dated 11.02.2020 passed by the CIT(A)-1, Indore for the Assessment Year 2011-12. 2. The grounds of appeal are as under: “1. That ld. AO erred in passing assessment order overlooking correct facts of the case by making wrong addition of Rs.30,00,000/-. 2. Ld. AO erred in assessing the income in hands of a Company which was a non-existent company during the concerned Fin. Year as the registration of the company was received during F.Y. 2011-12 AY 2012- 13 on 27.07.2011. 3. That the ld. AO erred in charging interest of Rs.7,87,950/- u/s 234A of the Act. 4. That the ld. AO erred in charging interest of Rs.8,62,110/- u/s 234B of the Act. 5. That the ld. AO erred in starting penalty proceedings u/s 271(1)(c) of the Act. ITA No.73/ Ind/ 2021 A.Y. 2011-12 Page 2 of 3 6. That the ld. AO erred in starting penalty proceedings u/s 271F of the Act.” 3. The assessee company had purchased agricultural land of Rs.30,00,000/-. Notice under Section 148 of the Income Tax Act, 1961 was issued on 27.03.2018. The return of income was not filed by the assessee. The Assessing Officer observed that the assessee has not filed the details in respect of immovable property amounting to Rs.54,19,200/- in the A.Y. 2011-12 in its return of income. The Assessing Officer made addition of Rs.30,00,000/- thereby observing that the assessee has not demonstrated the evidences in respect of land in consonance with the creditworthiness, identity and genuineness of the transaction. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) has dismissed the appeal of the assessee. 5. At the time of hearing none appeared on behalf of the assessee despite giving notice. Therefore, we are proceeding on the basis of the contentions taken before the Assessing Officer was well as before the CIT(A). 6. Ld. DR relied upon the Assessment Order and the order of the CIT(A) and further submitted that the assessee has not contested the case on merit before the Assessing Officer as well as before the CIT(A). 7. We have heard the ld. DR and perused all the relevant material available on record. There is a specific finding by the CIT(A) in paragraph no.3.2 that contention of the assessee relate to non-existent company during the relevant year cannot be justified as though the assessee company was not registered during the F.Y. 2010-11 still the assessee company purchased the land in its own name and was operational/functioning. The CIT(A) has rightly observed that the assessee neither proved nor explained that the source of a investment was in the hands of the ITA No.73/ Ind/ 2021 A.Y. 2011-12 Page 3 of 3 Directors. In fact, it is an admitted position that Directors never filed return of income and did not prove source of investment. Thus, the reasons given by the CIT(A) are just and proper. There is no need to interfere with the findings of the CIT(A). Appeal of the assessee is thus dismissed. 8. In the result, appeal of the assessee is dismissed. Order pronounced in the open Court on this 12 th day of July, 2022. Sd/- Sd/- (BHAGIRATH MAL BIYANI) (SUCHITRA KAMBLE) Accountant Member Judicial Member Indore, the 12 th day of July, 2022 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore