Jt. Commissioner of Income Tax(OSD), Range-1, Hyderabad V. Andhra Pradesh State Road Transport Corporation, Hyderabad

ITA 882/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3401 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 08-04-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 07-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Keywords: Unexplained cash credit; Depreciation; Additional evidence
• Section: 143(3); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI S .S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER ITA NO. 882 /H YD /201 8 ASSESSMENT YEAR: 20 12 - 13 JCIT (OSD) RANGE - 1 HYDERABAD . VS. ANDHRA PRADESH STATE ROAD TRANSPORT CORPORATION, [APSRTC] HYDERABAD. [PAN AAGFAA3527J] (APPELLANT) (RESPONDENT) REVENUE BY: SHRI YVST SAI, CIT, DR ASSESSEE BY: NONE DATE OF HEARING: 08/04/2021 DATE OF PRONOUNCEMENT: 11 /06/2021 O R D E R PER S.S. GODARA , J M: THIS REVENUES APPEAL FOR AY 20 12 - 13 ARISES AGAINST THE CIT(A) - 1 , HYDERABADS ORDER DATED 1 5.12.2017 PASSED IN CASE NO 0170/2017 - 18 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES BEHEST. IT IS ACCORDINGLY PROCEEDED E XPARTE. THE R EVENUE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL : - ITA NO. 882/HYD/2018 AY: 2012 - 13 JCIT VS. APSRTC 2 1. THE ORDER OF LD.CIT(A) IS ERRONEOUS ON FACTS AS WELL AS IN LAW. 2. THE LD.CIT(A) ERRED IN DELETING THE DISALLOWANCE OF EXCESS CLAIM OF EX - GRATIA OF RS.3,95,00,000/ - BY ADMITTING ADDITIONAL EVIDENCE WITHOUT PROVIDING AN OPPORTUNITY T O THE AO AS REQUIRED UNDER RULE 46A OF IT RULES 3. THE LD.CIT(A) ERRED IN DELETING DISALLOWANCE TOWARDS UNEXPLAINED CREDITS OF RS.82,77,00,000/ - MADE U/S 68 BY ADMITTING AD DITIONAL EVIDENCE VIOLATING RULE 46A OF I T RULES. 4. THE APPELLANT CRAVES TO LEAVE TO ADD, DELETE, SUBSTITUTE AND AMEND ANY GROUNDS OF APPEAL AT THE TIME OF HEARING. 2. LEARNED AR TOOK US TO THE CIT(A)S CORRESPONDING DISCUSSION REVERSING ASSESSING OFFICERS ACTION DISALLOWING DEPRECIATION OF RS. 3 , 95 , 00 , 000 / - IN THE COURSE OF ASSESSMENT DATED 31.03.2015. WE NOTICE FROM A PERUSAL OF THE ASSESSING OFFICERS REMAND REPORT DATED 27.11 .2017 THAT HE HAD DULY ACCEPTED ASSESSEES DEPRECIATION CLAIM AND THE IMPUGNED GRIEVANCE THEREFORE DOES NOT ARISE AT ALL. W E QUOTE (I) CIT VS. D M PURNESH (2020) 426 ITR 169 (KAR.) (HC) AND (II) SMT. B JAYA LAKSHMI VS. ACIT (201 8 ) 96 TAXMANN .COM 486 (MAD) THAT THE R EVENUE CANNOT BE HELD AS AN AGGRIEVED PARTY IN CASE OF ASSESSING OFFICERS FILING FAVOURABLE REM A ND REPORT BEFORE THE CIT(A). WE ADOPT THE VERY REASONING MUTATIS MUTANDIS AND DELETE THIS FORMER SUBSTANTIVE GROUND FOR THIS PRECISE REA SON ALONE. 3. NEXT COMES THE LATTER ISSUE OF UNEXPLAINED CASH CREDIT ADDITION OF RS.82,77,00,000/ - DELETED BY CIT(A) AS PER HIS DETAILED DISCUSSION AS UNDER. ADDITION U/S.68 TOWARDS LOANS OF RS.82,77, 00,000/ - 12.1. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THERE WERE LOANS OF RS.82,77,00,000 / - . THE ASSESSING OFFICER ASKED THE ASSESSEE TO SUBMIT THE LOANS - OTHER AND BREAKUP OF THE SAME. THE ASSESSEE SUBMITTED THAT IT IS IN THE PROCESS OF OBTAINING CONFIRMATIONS A ND REPAYMENT STATEMENTS FROM THE ITA NO. 882/HYD/2018 AY: 2012 - 13 JCIT VS. APSRTC 3 PARTIES CONCERNED. THE ASSESSEE FURTHER SUBMITTED THAT THE LOAN WAS AVAILED FROM APSRTC, ET & CCS LTD, DURING DECEMBER, 2011 AND JANUARY, 2012. HOWEVER, THE DOCUMENTS EVIDENCING THE RECEIPT AND ITS UTILITY WERE NOT SUBMITTE D. THEREFORE, THE GENUINENESS OF THE TRANSACTION AND IDENTITY OF THE LENDERS HAS NOT BEEN PROVED. THE ASSESSING OFFICER CONCLUDED THAT IT IS THE ONUS OF THE ASSESSEE TO PROVE IDENTITY, GENUINENESS & CREDITWORTHINESS OF THE LOANS RECEIVED AS PER THE RATIO L AID DOWN BY THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS BIJU PATNAIK (160 ITR 674). 12.2 BEFORE ME, THE APPELLANT SUBMITTED THAT THE CORPORATION HAD OBTAINED LOAN FROM APSRTC EMPLOYEES THRIFT AND CREDIT CO - OPERATIVE SOCIETY LTD., FOR RS.38.00 CRS ON 20.12.2011 AND RS.50.00 CRS ON 30.11.2011. THE APPELLANT SUBMITTED THAT AN AMOUNT OF RS.5.23 CRS HAS PAID TO THE CCS FOR REPAYMENT OF LOAN EMI FROM 01.01.2012 TO 31.03.2012. THE BALANCE AMOUNT OF RS.82. 77 CRS IS SHOWN AS CLOSING BALANCE. THE APPELLANT SUBMITTED THAT APSRTC EMPLOYEES THRIFT AND CREDIT CO - OPERATIVE SOCIETY IS PROMOTED BY APSTRC FOR WELFARE OF EMPLOYEES TO PROMOTE THRIFT AND SAVINGS. THIS SOCIETY IS AN ASSESSED WITH PAN NO. AAEAT6546K. THE APPELLANT SUBMITTED THAT SINCE THE IDENTITY WAS ES TABLISHED AND THE CAPACITY CANNOT DOUBTED, INVOKING PROVISIONS OF SECTION IS NOT CORRECT. 12 .3 . THE SUBMISSIONS OF THE APPELLANT HAVE BEEN CAREFULLY CONSIDERED. APPELLANT SUBMITTED THAT AS PER BALANCE SHEET IN SCHEDULE - B. OUT OF BORROWINGS OF RS.880 0 LAKHS, RS.523 LAKHS WERE REPAID LEAVING A BALANCE OF RS.8277 LAKHS. THE APPELLANT SUBMITTED THE ACCOUNT COPY FROM BOOKS OF APSRTC EMPLOYEES THRIFT AND CREDIT COOPERATIVE SOCIETY AND THE BALANCE SHEET OF THE SOCIETY. THE SUBMISSIONS OF THE APPELLANT IS AC CEPTED. IT IS A' REGISTERED THRIFT CREDIT CO - OPERATIVE SOCIETY AND HENCE THE SUBMISSIONS OF THE APPELLANT IS ACCEPTED. ADDITION MADE BY THE ASSESSING OFFICER IS DELETED. - GROUND ALLOWED 4 . LD . CIT - DR VEHEMENTLY CONTENDED DURING THE COURSE OF HEARING THAT THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN ADMITTING ADDITIONAL EVIDENCE THEREBY DELETING THE IMPUGNED SEC.68 ADDITION IN VIOLATION OF RULE 46A OF IT RULES. IT IS EVIDEN T FROM PERUSAL OF ABOVE E XTRACTED CIT(A)S DISCUSSION THAT HE HAS N OT ADMITTED ANY ADDITIONAL EVIDENCE AT ALL OF THE INCOME TAX RULES AND, THEREFORE, IT COULD NOT BE TREATED AS AN INSTANCE OF VIOLATION OF RULE 46A AS IT HAS BEEN PROJECTED AT THE R EVENUES BEHEST . THE FACT A LSO EMERGES THAT CIT(A) HAS HIMSELF VERIFIED THE FACT THAT THE IMPUGNED SUM HA D COME AS A LOAN FROM M/S APSRTC ITA NO. 882/HYD/2018 AY: 2012 - 13 JCIT VS. APSRTC 4 E MPLOYEES T HRIFT AND C REDIT C OOPERATIVE S OCIETY LIMITED ONLY HAS NOWHERE BEEN REBUTTED IN R EVENUES PLEADINGS BEFORE US. ALL THIS SUFFICIENTLY EXPLAIN SOURCE OF HIS IMPUGNED SUMS. WE THUS UPHOLD THE CIT(A)S FINDINGS ON BOTH THESE COUNTS. THIS REVENUES APPEAL IS DISMISSED . PRONOUNCED IN OPEN COURT ON 11 TH JUNE, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 11 TH JUNE, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. M/S ANDHRA PRADESH STATE ROAD TRANSPORT CORPORATION (APSRTC), 1 - 7 - 1066, BUS BHAVAN, MUSH EERABAD, HYDERABAD 2. JCIT (OSD) RANGE 1, HYDERABAD 3 . ITO, WARD - 11(3), HYDERABAD . 4 . DCIT, CIRCLE 1(1), HYDERABAD. 5 . CIT(A) - 1, HYDERABAD 6. PR.CIT - 1 , HYDERABAD 7 . DR, ITAT, HYDERABAD. 7 . GUARD FILE.