DCIT 2(2)(1), MUMBAI V. JIK INDUSTRIES LTD, MUMBAI

ITA 7456/MUM/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3159 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 19-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJIV GUBGOTRA
• Keywords: Unexplained cash credit; Search and seizure
• Section: 143(3); 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE S/ SHRI B.R. BASKARAN (AM) & SANDEEP GOSAIN (JM) I.T.A. NO. 7456 /MUM/20 1 6 (ASSESSMENT YEAR 20 0 6 - 0 7 ) DCIT 2(2)(1) ROOM NO. 545 5 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. VS. M/S. J IK INDUSTRIES LTD. 1,2,3, GUNDECHA CHAMBERS, N.M. ROAD FORT, MUMBAI - 400023. PAN : AABCJ2982J ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI AKASH KUMAR DEPARTMENT BY SHRI RAJIV GUBGOTRA DATE OF HEARING 7 . 2 . 201 9 DATE OF PRONOUNCEMENT 7 . 2 . 201 9 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 25.4.2013 PASSED BY LEARNED CIT(A) - 50, MUMBAI AND IT RELATES TO A.Y. 2006 - 07. THE REVENUE IS AGGRIEVED BY THE DECISION OF LEARNED CIT(A) IN DEL ETING THE ADDITION OF RS. 3532.20 LAKHS RELATING TO S HARE APPLICA TION MONEY RECEIVED BY THE ASSESSEE. 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF CRYSTAL ITEMS AND CHEMICALS. THE REVENUE CARRIED OUT SEARCH AND SEIZURE OPERATION U/S. 132 OF THE ACT ON 4.2.2011 IN THE HANDS OF THE ASSESSEE. CONSEQUENT THERETO, PRESENT ASSESSMENT YEAR FOR A.Y. 2006 - 07 WAS COMPLETED BY THE ASSESSING OFFICER U/S. 143(3) READ WITH SECTION 153A OF THE ACT. WHILE COMPLETING THE ASSESSMENT, THE ASSESSING OFFICER ADDED SHARE SUBSCRIPTION MONEY AND SHARE PREMIUM COLLECTED BY THE ASSESSEE TREATING THE M AS UNEXPLAINED CASH CREDIT S . ADDITION SO MADE WORKED OUT TO RS. 3532.20 LAKHS . M/S. JIK INDUSTRIES LTD. 2 3. BEFORE LEARNED CIT(A), THE ASSESS EE CONTENDED THAT SEARCH PARTY DID NOT FOUND ANY INCRIMINATING MATERIAL RELATING TO A.Y. 2006 - 07 MORE PARTICULARLY RELATING TO IMPUGNED ADDITION. IT WAS ALSO SUBMITTED THAT THE ASSESSMENT OF A.Y. 2006 - 07 DID NOT ABATE. ACCORDINGLY BY PLACING RELIANCE ON TH E DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. CONTINENTAL WAREHOUSING CORPORATION (NHAVA SHEVA) LTD. (2015) 58 TAXMAN.COM 78, THE ASSESSEE CONTENDED THAT THE ASSESSING OFFICER COULD NOT HAVE MADE ANY ADDITION IN THE CASE OF UNAB ATED ASSESS MENT, FOR WHICH NO INCRIMINATING MATERIAL WAS FOUND DURING THE COURSE OF SEARCH. LEARNED CIT(A) WAS CONVINCED WITH THE CONTENTION OF THE ASSESSEE AND ACCORDINGLY DIRECTED THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION. REVENUE IS AGGRIEVED. 4. AT T HE TIME OF HEARING, LEARNED DR PLACED RELIANCE ON THE ORDER PASSED BY THE ASSESSING OFFICER. HOWEVER, HE COULD NOT POINT OUT THAT THE IMPUGNED ADDITION WAS MADE BY THE ASSESSING OFFICER ON THE BASIS OF ANY INCRIMINAT ING MATERIAL. 5. LEARNED AR, ON THE CON TRARY, STRONGLY SUBMITTED THAT THE REVENUE DID NOT UNEARTH ANY INCRIMINATING MATERIAL DURING THE COURSE OF SEARCH TO SHOW THAT THE SHARE APPLICATION MONEY AND PREMIUM COLLECTED BY THE ASSESSEE REPRESENT UNEXPLAINED INCOME OF THE ASSESSEE. SINCE THE ASSESS MENT OF THE IMPUGNED ASSESSMENT YEAR IS NOT ABATED, HE SUBMITTED THAT THE LD CIT(A) HAS RIGHTLY DELETED THE ADDITION. ACCORDINGLY HE SUBMITTED THAT THE ORDER PASSED BY LEARNED CIT(A) DOES NOT CALL FOR ANY INTERFERENCE. 6. HAVING HEARD THE RIVAL SUBMISSIO NS, WE ARE OF THE VIEW THAT THE ORDER PASSED BY LEARNED CIT(A) DOES NOT CALL FOR ANY INTERFERENCE AS HE HAS FOLLOWED THE DECISION RENDERED BY HON'BLE BOMBAY HIGH COURT IN THE CASE OF CONTINENTAL WAREHOUSING CORPORATION (NHAVA SHEVA) LTD. (SUPRA), IN ORDER TO HOLD THAT THE IMPUGNED ADDITION IS LIABLE TO BE DELETED AS THE SAME HAS BEEN MADE IN RESPECT OF UNABATED ASSESSMENT YEAR , FOR WHICH NO INCRIMINATING M/S. JIK INDUSTRIES LTD. 3 MATERIAL RELATING TO THE IMPUGNED ADDITION WAS FOUND DURING THE COURSE OF SEARCH. ACCORDINGLY, WE UPHOL D THE ORDER PASSED BY LEARNED CIT(A). 7. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 7 . 2 .201 9 . SD/ - SD/ - (SANDEEP GOSAIN ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 7 / 2 / 20 1 9 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE CO PY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI