ID INFO BUSINESS SERVICES LIMITED, MUMBAI V. ITO 12(2)(1), MUMBAI

ITA 821/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1792 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 14-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHREEKALA PARADESHI
• Keywords: Unexplained cash credit; Business expenditure; Additional evidence; Reasonable cause; Set aside
• Section: 142(1); 234B; 143(1); 250; 143(2); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 821/MUM/2019 ( ASSESSMENT YEARS: 2004-05 ) ID INFO BUSINESS SERVICES LTD., 104, MAHINDER CHAMBERS, OPP DUKES FACTORY, W.P PATIL MARG, CHEMBUR, MUMBAI 400071. / VS. ITO, 12(2)(1) 224, 2 ND FLOOR, AYAKAR BHAVAN, MK ROAD, MUMBAI. ./ ./ PAN/GIR NO. : AAACH2019R ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VIJAY MEHTA, AR / RESPONDENT BY : MS. SHREEKALA PARADESHI, DR / DATE OF HEARING 11/11/2020 !'# / DATE OF PRONOUNCEMENT 17/11/2020 / O R D E R PER PAVAN KUMAR GADALE - JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-20, MUMBAI PASSED U/S 144 AND 250 OF THE ACT. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL ITA NO .821 /MUM/2019 ID INFO BUSINESS SERVICE LTD., MUMBAI. - 2 - 1. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A)-20, MUMBAI ERRED IN DISMISSING THE APPELLANTS APPEAL IN LIMINE. 2. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN NOT DELETI NG THE ADDITIONS AGGREGATING TO RS. 3,42,07,177/- MADE ON THE FOLLOWING COUNTS, DESPITE THERE BEING REMAND REPORT ACCEPTING THE CLAIM OF THE APPELLANT AFTER VERIFICA TION. A. DEPRECIAITON ALLOWANCE OF RS. 12,956/- B. UNEXPLAINED CASH CREDIT OF RS. 26,92,980/- C. CESSATION OF LIABILITY OF RS. 3,03,57,497/- D. UNEXPLAINED BUSINESS EXPENDITURE OF RS. 11, 43,743/- 3. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN NOT DELETI NG THE ADDITION OF RS. 20,63,000/- MADE BY THE LD. A.O ON ACCOUNT OF LOSS INCURRED BY THE APPELLANTS ON TRADI NG IN SHARES. 4. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN NOT APPREC IATING THAT THERE IS A TOTALING ERROR OF RS. 11, 43, 743 M ADE BY THE LD. AO WHICH HAS TO BE DELETED. 5. ON THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN NOT DELETI NG INTEREST U/S 234B AND 234D CHARGED BY THE LD. A.O 2. BRIEF FACTS OF THE CASE ARE THAT, THE ASSESSEE COMPANY IS A INVESTMENT COMPANY AND ENGAGED IN THE ITA NO .821 /MUM/2019 ID INFO BUSINESS SERVICE LTD., MUMBAI. - 3 - BUSINESS OF TRADING AND INVESTMENT IN SHARES. THE ASSESSEE HAS FILED RETURN OF INCOME ON 01.11.2004 DISCLOSING TOTAL INCOME OF RS. NIL. THE RETURN OF INCOME WAS PROCESSED U/S 143(1) OF THE ACT. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AN D NOTICE U/S 143(2) AND 142(1) OF THE ACT WERE ISSUED . WHEREAS, NOTICES WERE SENT TO THE ASSESSEE AND FI NAL OPPORTUNITY WAS ALSO PROVIDED. SINCE, THERE WAS NO COMPLIANCE FROM THE ASSESSEE, THE A.O HAS MADE BES T JUDGMENT ASSESSMENT WITH ADDITIONS AND ASSESSED THE TOTAL INCOME OF RS. 3,74,39,686/- AND PASSED THE ORDER U/S 144 OF THE ACT ON 26.12.2006. AGGRIEVED BY THE ORDER OF THE A.O THE ASSESSEE HAS FILED AN APPE AL WITH THE CIT(A). WHEREAS, THE CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE AS THERE WAS A DELAY OF MORE THAN SEVEN YEAR IN FILING THE APPEAL. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE HAS FILED AN APPEAL WITH THE HONBLE TRIBUNAL. 3. AT THE TIME OF HEARING LD. AR OF THE OF THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS PASSED THE ORDER WITHOUT CONSIDERING THE MATERIAL FACTS, AFFID AVIT AND DETAILS FILED IN THE COURSE OF APPELLATE PROCEEDINGS. THE LD. AR REFERRED TO THE PAPER BOOK ITA NO .821 /MUM/2019 ID INFO BUSINESS SERVICE LTD., MUMBAI. - 4 - AND SUBMITTED THAT THE CIT(A) HAS OVERLOOKED AFFIDA VIT FILED ON 16.11.2018 AND THE ADDITIONAL EVIDENCES F ILED IN THE COURSE OF APPELLATE PROCEEDINGS. THE FACT OF DELAY IN FILLING THE APPEAL WAS NEVER PUT TO THE ASSESSEE TO EXPLAIN THE DELAY WITH REASONABLE CAUSE AND PRAYED FOR ONE MORE OPPORTUNITY TO SUBSTANTIATE THE CASE WITH EVIDENCES BEFORE THE LDCIT(A) AND PRAYED FOR ALLOWING THE APPEAL OF THE ASSESSEE. CONTRA, THE LD.DR HAS NO SERIOUS OBJECTIONS FOR RESTORING ISSUES TO THE FILE OF THE CIT(A). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. PRIMA-FACIE, THE CIT( A) HAS DISMISSED THE APPEAL OF THE ASSESSEE AS THERE I S A DELAY OF MORE THAN SEVEN YEARS IN FILING THE APPEAL AND THE CIT(A) HAS ONLY CONSIDERED THIS PARTICULAR FACT AND DISMISSED THE APPEAL IN LIMINE. THE LD. AR EMPHASIZED AND REFERRED TO THE ADDITIONAL EVIDENC ES FILED UNDER RULE46A OF IT RULES1962 BEFORE THE CIT( A) ON 01.03.2016 AT PAGE 2 OF PAPER BOOK AND THE AFFIDAVIT FILED ON 16.11.2018 AT PAGE 23 OF PAPER BOOK EXPLAINING THE RECEIPT OF THE COPY OF THE ASSESSMEN T ORDER U/S 144 OF THE ACT. WE FOUND STRENGTH IN SUBMISSIONS OF THE LD. AR AND THE LD CIT(A) HAS ON LY ITA NO .821 /MUM/2019 ID INFO BUSINESS SERVICE LTD., MUMBAI. - 5 - REFERRED TO THE FACTS IN RESPECT OF RECEIPT OF THE ASSESSMENT ORDER BY THE ASSESSEE AND NO DISCUSSION OF THE ADDITIONAL EVIDENCES AND AFFIDAVIT FILED BY THE ASSESSEE AND PASSED THE ORDER ON 16.11.2018. PRIMA - FACIE, THE MATERIAL FILED BY THE ASSESSEE GOES TO THE ROOT OF THE CASE. ACCORDINGLY, WE SET ASIDE THE ORD ER OF THE CIT(A) AND RESTORE THE ENTIRE DISPUTED ISSUES T O THE FILE OF THE CIT(A) TO ADJUDICATE AFRESH CONSIDE RING THE MATERIAL, AFFIDAVIT AND DETAILS FILED IN THE CO URSE OF APPELLATE PROCEEDINGS AND THE ASSESSEE SHOULD B E PROVIDED AN OPPORTUNITY TO EXPLAIN THE DELAY IN FIL ING THE APPEAL.THE ASSESSEE SHOULD COOPERATE IN SUBMITTING THE INFORMATION FOR EARLY DISPOSAL OF TH E APPEAL AND ALLOW THE GROUNDS OF APPEAL FOR STATISTI CAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.11.2020 SD/- SD/- (PRAMOD KUMAR) (PAVAN KUMA R GADALE ) VICE PRESIDENT JUDICIAL MEMBER MUMBAI, DATED 17 /11/2020 ITA NO .821 /MUM/2019 ID INFO BUSINESS SERVICE LTD., MUMBAI. - 6 - KRK, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. & '( ) / THE CIT(A) 4. ) ( ) / CONCERNED CIT 5. ,-. //'( , '(# , & / DR, ITAT, MUMBAI 6. .34 5 / GUARD FILE. / BY ORDER, , / //TRUE COPY// 1. / ( ASST. REGISTRAR) !' #, / ITAT, MUMBAI