KRETEKA INVESTMENTS PRIVATE LIMITED, MUMBAI V. INCOME TAX OFFICER, WARD-12(3)(1), MUMBAI

ITA 902/MUM/2023

AI Insights

Kreteka Investments Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals)-20 / National Faceless Appeal Centre, which had affirmed the addition of Rs. 60,00,000 as unexplained cash credit under section 68 of the Income Tax Act, 1961. The addition was initially made by the Assessing Officer (AO) due to the assessee's failure to prove the identity, capacity, and genuineness of the transaction concerning the share application money received. The assessee, during the appellate proceedings, submitted additional documents which were not considered by the lower authorities due to their unavailability at the time of the hearings. The tribunal, acknowledging the importance of these documents, remanded the case back to the Commissioner for a fresh assessment, allowing the assessee to present all relevant materials and arguments.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299532 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 14-06-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 20-03-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Onus to prove
• Section: 68; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM & SHRI N. K. CHOUDHRY, JM I.T.A. No. 902/Mum/2023 Assessment Year: 2012-13) Kreteka Investments Pvt. Ltd. Table No.5, Office No.704, 7 th Floor, Palm Spring Centre, C.S.L. Link Road, Malad (West), Mumbai-400064. PAN No. AADCK4316M Vs. ITO, Ward-12(3)(1) Room No. 147A, 1 st Floor, Aayakar Bhavan, M.K. Road, Mumbai-400020. Appellant) : Respondent) Appellant by : Sh. K. Gopal Respondent by : Sh. S.N. Kabra, Sr.DR Date of Hearing : 15.06.2023 Date of Pronouncement : 28.06.2023 O R D E R Per N. K. Choudhry, JM: The Assessee/Appellant herein has preferred this appeal against the order dated 24.01.2023 impugned herein passed by Ld. Commissioner of Income Tax (Appeals)-20 / National Faceless Appeal Centre (NFAC), Delhi {in short ‘Ld. Commissioner)’} u/s 250 of the Income Tax Act 1961 (in short ‘the Act’). 2 ITA No. 902/Mum/2023 Kreteka Investments Pvt. Ltd. 2. In this case, on the basis of the information recived from the Investigation Wing of the Department, the case of the assessee was re-opened under section 147/148 of the Act. The assessee claimed before the AO that that it had received an amount of Rs. 60,00,000/- as share application money during the year, from M/s Vanquish Investment & Leasing Pvt. Ltd. through banking channel, which was refunded back during the year itself and the assessee attached relevant extract/bank statement in support of its contention, however, as per AO the Assessee has not submitted any document to prove the genuineness of the transaction, capacity of the investing company, etc. and therefore, the AO made the addition of such amount of Rs. 60,00,000/-, by observing that the assessee has failed to discharge its onus to prove the following: (i) The identity of the creditor/investor (ii) The capacity of the creditor/investor to advance money and (iii) Genuineness of the transaction made the addition of Rs. 60,00,000/- under section 68 of the Act. 3 ITA No. 902/Mum/2023 Kreteka Investments Pvt. Ltd. 3. The assessee being aggrieved preferred first appeal before the Ld. Commissioner. Though the Ld. Commissioner issued the notices for hearing on dated 28.01.2021 and 06.01.2023 by fixing the case on 12.02.2021 and 13.01.2023 respectively, however the Assessee except filing an request for adjournment dated on 17.02.2021 neither appeared nor filed any submissions, therefore, on the basis of the material available on record, the Ld. Commissioner decided the appeal of the Assessee and affirmed the addition made by the AO. 4. The assessee before us by filing application under Rule 29 of the Income Tax Appellate Tribunal Rules, 1963 (in short “Rules”) along with certain documents related to M/s Vanquish Investment & Leasing Pvt. Ltd. from whom the assessee had taken a loan of Rs. 60,00,000/- and bank statement etc., claimed that the said documents though are essential for adjudication of the issue involved in the instant case, however, could not be furnished before the authorities below on account of information available during the course of assessment as well as appellate proceedings, as the documents are age old documents and difficult to trace during the course of the proceedings, before the authorities below. 4 ITA No. 902/Mum/2023 Kreteka Investments Pvt. Ltd. 5. We have given thoughtful consideration to the documents filed and contention raised by the assessee in support of its application under Rule 29 of the Rules for admission of the additional evidence. Considering the peculiar facts and circumstances and the additional evidence filed by the assessee, in totality, we are of the considered view that the documents filed by the assessee are not only essential but infact goes to the root of the issue involved and therefore, for the just decision of the case and for the ends of substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the assessee. We clarify that the assessee shall be at liberty to produce all relevant material in support of its case and shall also appear as and when would be required and file any other document(s) as would be required by the Ld. Commissioner for determination of the issue involved. We also clarify that in case of further default, the assessee shall not be entitled for any leniency. 5 ITA No. 902/Mum/2023 Kreteka Investments Pvt. Ltd. 6. In the result, appeal filed by the assessee stands allowed for statistical purposes. Orders pronounced in the open court on 28-06-2023. Sd/- Sd/- (PRASHANT MAHARISHI) (N. K. CHOUDHRY) Accountant Member Judicial Member SK, Sr.PS. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. Guard File BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai