ACCOR GRANITES, HOSUR V. ACIT, CIRCLE-1, HOSUR

ITA 756/CHNY/2023

AI Insights

The case involves Accor Granites, which appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2015-16. The primary contention was the addition of certain amounts to the assessee's income, which were classified as unexplained cash credits and unproven creditors by the Assessing Officer. The Tribunal noted that the assessee had filed a rectification petition along with additional evidence, which was not considered by the CIT(A). Consequently, the Tribunal decided to set aside the CIT(A)'s order and remand the case for a fresh decision based on the new evidence.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134961 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 24-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 20-06-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Condonation of delay
• Section: 68; 143(3); 142(1); 143(2)

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No. 756/Chny/2023 िनधाŊरण वषŊ/Assessment Year: 2015-16 Accor Granites, 48/1B S. Thatanapalli Vill, Berigal- Theertham Road, Hosur Tamil Nadu 635105. [PAN:AATFA2431L] Vs. The Assistant Commissioner of Income Tax, Circle-1 Hosur. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri D. Hema Bhupal, JCIT सुनवाई की तारीख/ Date of hearing : 25.07.2023 घोषणा की तारीख /Date of Pronouncement : 28.07.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi dated 21.04.2023 for the assessment year 2015-16. 2. The appeal filed by the assessee is delayed by one day in filing the appeal and filed a petition for condonation of delay in support of an I.T.A. No. 756/Chny/23 2 affidavit to which; the ld. DR has not raised any serious objection. Consequently, since the assessee was prevented by sufficient cause, the delay of five days in filing of the appeal stands condoned and the appeal is admitted for adjudication. 3. Brief facts of the case are that the assessee filed its return of income for the assessment year 2015-16 on 29.09.2015 admitting total loss of ₹.23,60,115/-. The case was selected for scrutiny under CASS and notice under section 143(2) & 142(1) of the Income Tax Act, 1961 [“Act” in short] were issued on 25.07.2016 and the same was served on the assessee on 29.07.2016. During the course of hearing, the Assessing Officer requested the assessee to prove the sundry creditors above ₹.1 lakhs shown in the balance sheet totalling to ₹.97,06,170/- and finance creditor amounting to ₹.2,50,000/- shown as received from J. Mayakrishnan. The assessee furnished confirmation letter from certain creditors but, the Assessing Officer noted that confirmation from creditors to the tune of ₹.65,81,163/- was not furnished. In view of the above, the sum of ₹.65,81,163/- was brought to tax as creditors not proved. With regard to the finance creditor amounting to ₹.2,50,000/-, the Assessing Officer requested the assessee to prove the identity of loan creditor, source & credit I.T.A. No. 756/Chny/23 3 worthiness of the creditor with evidences. However, no such details have been filed by the assessee and thus, the said sum of ₹.2,50,000/- was brought to tax as unexplained cash credit under section 68 of the Act. Accordingly, the Assessing Officer has completed the assessment under section 143(3) of the Act dated 29.12.2017 assessing total income of the assessee at ₹.44,71,048/- after making additions as discussed above. On appeal, the ld. CIT(A) dismissed the appeal filed by the assessee since there was no response from the assessee by filing any written submissions despite various opportunities afforded to the assessee. 4. On being aggrieved against the appellate order, the assessee carried the matter in appeal before the Tribunal. None appeared on behalf of the assessee despite notice of hearing has been issued by RPAD. Hence, we proceed to decide the appeal after hearing the ld. DR. 5. We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below including paper book filed by the assessee. Against the assessment under section 143(3) of the Act dated 29.12.2017, the assessee carried the I.T.A. No. 756/Chny/23 4 matter in appeal before the ld. CIT(A). The ld. CIT(A) issued hearing notices for filing the written submissions. However, the assessee has not complied with the above notices. Therefore, the ld. CIT(A) dismissed the appeal filed by the assessee. 6. In the grounds of appeal, the assessee has agitated that the assessee has filed rectification petition before the Assessing Officer by filing additional evidences with regard to the additions made in the assessment order. It appears that the Assessing Officer has not issued any order against rectification petition filed by the assessee. The assessee has also filed copy of the rectification petition filed before the Assessing Officer along with confirmation letter from M/s. Gladstone Granites Pty Ltd., Australia for ₹.64,10,549/- and also bank statement from Mr. J. Mayakrishnan for transferring ₹.2,50,000/-. It was also stated in the grounds of appeal that the above details were furnished while the appeal before the first appellate authority, which was not considered by the ld. CIT(A),NFAC. Accordingly, we set aside the appellate order and remit the matter back to the file of the ld. CIT(A) with a direction to adjudicate the issues on merits in accordance with law after considering the details as may be filed by the assessee by affording reasonable opportunities of being heard to the assessee. The I.T.A. No. 756/Chny/23 5 assessee is also directed to furnish complete details with material evidence before the ld. CIT(A) for consideration. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28 th July, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 28.07.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3.आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.