Bimel Resins Pvt. Ltd., Delhi V. ITO, New Delhi

ITA 791/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97147 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 09-07-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 07-02-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAVINDER MAINI
• Keywords: Bogus Share capital; Opportunity of being heard; Accommodation entries; Reassessment proceedings
• Section: 68; 148; 144; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO . 791 /DEL/201 3 ASSESSMENT YEAR: 2004 - 05 BIMEL RESINS PVT. LTD. VS. INCOME TAX OFFICER, 31, GUJRANWALA TOWN, WARD - 3(1), NEW DELHI, PART - II, G.T. KARNAL ROAD, DELHI (PAN: AAACB1168M ) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. K. SAMPATH, ADV. RESPONDENT BY : SH. RAVINDER MAINI, DR DATE OF HEARING: 09.07.2015 DATE OF PRONOUNCEMENT: 02.09.2015 ORDER PER INTURI RAMA RAO, A.M. : THIS IS AN A PPEAL FILED BY THE ASSESSEE COMPANY FOR THE ASSESSMENT YEAR 2004 - 05 AGAINST THE ORDER OF CIT(A) - VI, NEW DELHI, DATED 23.11.2012. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: I. THE IMPUGNED ORDER IS BAD IN LAW AND CONTRARY TO THE FACTS, OF THE CASE AND IS LIABLE TO BE SET ASIDE. II. THE LD . CIT(A) AND AS WELL AS ASSESSING OFFICER HAS MADE AN ERRED WHILE MAKING ADDITION U/S 68 IN AS MUCH AS ALL THE PERSONS FROM WHOM THE SUM HAS BEEN RECEIVED WERE IDENTIFIED AND ALL THE INGREDIENTS OF SECTION 68 WERE COMPLIED. III. THAT APPELLANT ALSO PRAYS THAT I T MAY BE ALLOWED TO ADD, AMEND, ALTER OR FOREGO ANY OF THE GROUNDS AT THE TIME OF HEARING, IF SO REQUIRED. 2 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE APPELLANT IS A PRIVATE LIMITED COMPANY DULY INCORPORATED UNDER THE PROVISIONS COMPANIES ACT, 1956. THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2004 - 05 WAS FILED ON 24 TH AUGUST, 2004, DECLARING INCOME OF RS. 90,500/ - . THE SAID RETURN OF INCOME WAS ACCEPTED UN DER THE PROVISIONS OF SECTION 1 4 3(1) OF THE INCOME - TAX ACT, 19 61 (FOR SHORT THE ACT ) . SU BSEQUENTLY, BASED ON THE INFORMATION RECEIVED FROM THE INVESTIGATION DEPARTMENT THAT THE APPELLANT WAS BENEFICIARY OF ACCOMMODATION ENTRIES TO THE TUNE OF RS. 5,05,000/ - . THE REASSESSMENT PROCEEDINGS WERE INITIATED BY ISSUING NOTICE UNDER SECTION 148 OF THE ACT, DATED 23 RD MARCH, 2011. AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED VIDE ORDER DATED 26.12.2011, AT A TOTAL INCOME OF RS. 5,95,500/ - . THE ASSESSING OFFICER MADE ADDITION OF SHARE APPLICATION MONEY RECEIVED OF RS. 5,00,000/ - ON THE GROUND THAT T H E S E WAS BOGUS ENTRIES AND THE APPELLANT HAD FAILED TO PRODUCE THE DIRECTORS OF THE SHARE APPLICATION COMPANY. BEING AGGRIEVED, AN APPEAL WAS FILED BEFORE THE CIT(A) WHO VIDE ORDER DATED 23.11.2012, DISMISSED THE APPEAL. BEING AGGRIEVED, T HE APPELLANT IS BEFORE US WITH THE PRESENT APPEAL. 3. DURING THE COURSE OF HEARING, IT WAS SUBMITTED BY LEARNED COUNSEL FOR THE APPELLANT THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF ASSESSING OFFICER FOR THE REASON THAT THE REASSESSMENT WAS MADE UNDER THE PROVISION OF SECTION 144 OF THE ACT, THE APPELLANT COULD NOT PRODUCE THE DIRECTORS OF THE SHARE APPLICATION COMPANY IN VIEW OF SHORT TIME GIVEN. HENCE IT IS PRAYED THAT THE MATTER MAY BE SENT BACK TO THE FILE OF THE ASSESSING OFFICER. 3 4. LD. DR HAD NO SERIOUS OBJECTION AGAINST THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE APPELLANT. 5. ACCORDINGLY, WE REMIT THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO COMPLETE REASSESSMENT AFTER DULY AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE COMPANY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THE DECISION IS PRONOUNCED IN THE OPEN COURT ON 2 N D S E P T E M B E R , 2015. S D / - S D / - ( I.C. SUDHIR ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 N D S E P T E M B E R , 2015. RK/ - COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI