ITO 9(2)3, MUMBAI V. MAGIC PARK (I) P. LTD, MUMBAI

ITA 9091/MUM/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 5195 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-10-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 28-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DIVYA BAJPAI
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'B' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO. 9091/MUM/2010 (ASSESSMENT YEAR: 2007-08) INCOME TAX OFFICER - 9(2)(3) M/S. MAGIC PARK (INDIA ) P. LTD. ROOM NO. 225, AAYAKAR BHAVAN 3B, GIRNAR APTS, 55 PA LI HILL M.K. ROAD, MUMBAI 400020 VS. BANDRA (W), MUMBAI 400050 PAN - AAECM3597M APPELLANT RESPONDENT APPELLANT BY: MS DIVYA BAJPAI RESPONDENT BY: NONE DATE OF HEARING: 17.10.2013 DATE OF PRONOUNCEMENT: 17.10.2013 O R D E R PER D. MANMOHAN, V.P. THIS APPEAL IS FILED AT THE INSTANCE OF THE REVENUE AND IT PERTAINS TO A.Y. 2007-08. 2. THE ONLY GROUND URGED BY THE REVENUE READS AS UNDER : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.1,8 6,19,875/- COMPRISING SHARE APPLICATION MONEY (RS.1,85,97,640/ -) AND UNSECURED LOAN (RS.22,235/-) IGNORING THE FACTS ON RECORD WHICH INDICATES THAT THESE AMOUNTS WERE FOUND CREDITED IN THE BOOK IN THE RELEVANT ASSESSMENT YEAR. 3. THE CASE WAS ORIGINALLY POSTED FOR HEARING ON 22.07 .2013 WHEREIN THE LEARNED COUNSEL FOR THE ASSESSEE, SHRI STANY SALDAN HA, SUBMITTED THAT THERE IS NO FRESH LOANS/INCREASE IN SHARE APPLICATION MON EY DURING THE YEAR AND HENCE THERE IS NO CASE FOR MAKING AN ADDITION UNDER SECTION 68 OF THE ACT AND IN SUPPORT THEREOF A PAPER BOOK WAS FILED. SCHE DULE FORMING PART OF THE BALANCE SHEET AS ON 31.03.2006, SHOWS UNSECURED LOA N OF ` 22,235/- AS WELL AS SHARE APPLICATION MONEY OF ` 1,85,97,640/- WAS REFLECTED IN THE BALANCE SHEET FOR THE PREVIOUS YEAR ENDING ON 31 ST MARCH 2006 AND THE SAME FIGURES APPEAR AS ON 31 ST MARCH, 2007 WHICH IMPLIES THAT THERE IS NO FRESH C APITAL ITA NO. 9091/MUM/2010 M/S. MAGIC PARK (INDIA) P. LTD. 2 INTRODUCTION OR LOAN IN THE YEAR UNDER CONSIDERATIO N. THE REVENUE, HOWEVER, APPEARS TO HAVE CLAIMED THAT THESE AMOUNTS WERE CRE DITED IN THE RELEVANT ASSESSMENT YEAR AND HENCE THE LEARNED DR WAS DIRECT ED TO FURNISH EVIDENCE IN SUPPORT THEREOF AND ALSO DIRECTED TO FIND OUT FR OM THE OFFICE OF THE REGISTRAR OF COMPANIES AS TO WHAT WAS THE SHARE APP LICATION MONEY RECEIVED IN THE IMMEDIATELY PRECEDING YEAR AND WHETHER THERE IS ANY FRESH AMOUNT RECEIVED IN THE YEAR UNDER CONSIDERATION. ACCORDING LY THE CASE WAS ADJOURNED FOR HEARING ON 17.10.2013. HOWEVER, AT TH IS STAGE THE LEARNED COUNSEL REQUESTED FOR AN ADJOURNMENT ON THE GROUND THAT HE HAS TO APPEAR IN A CIVIL COURT IN ANOTHER MATTER AND HENCE WOULD NOT BE ABLE TO APPEAR IN PERSON. 4. UNDER THESE CIRCUMSTANCES WE CALLED UPON THE LEARNE D D.R. TO FURNISH THE EVIDENCE, IF ANY, TO SUPPORT THE STAND TAKEN BE FORE US. THE LEARNED D.R. FAIRLY ADMITTED THAT NO INFORMATION IS SUPPLIED BY THE AO IN SUPPORT OF THE CONTENTION THAT THESE AMOUNTS WERE FOUND CREDITED I N THE BOOKS OF THE ASSESSEE IN THE PREVIOUS YEAR RELEVANT TO A.Y. 2007 -08. 5. THE LEARNED CIT(A), IN FACT, CATEGORICALLY MENTIONE D THAT THE FINANCIAL STATEMENTS OF THE ASSESSEE CLEARLY REFLECT THAT THE RE IS NO FRESH INFLOW IN THE YEAR UNDER CONSIDERATION AND HENCE NO CASE WAS MADE OUT BY AO TO MAKE THE IMPUGNED ADDITION. IN THE ABSENCE OF ANY EVIDEN CE TO CONTRADICT THE FINDINGS OF THE CIT(A), WE DO NOT FIND ANY MERIT IN THE APPEAL FILED BY THE REVENUE. WE, THEREFORE, PROCEEDED TO DISPOSE OF THE APPEAL EXPARTE, QUA ASSESSEE. SINCE NO MATERIAL, WHATSOEVER, WAS FURNIS HED TO CONTRADICT THE FINDINGS OF THE LEARNED CIT(A), WE AFFIRM THE ORDER OF THE CIT(A) AND DISMISS THE APPEAL FILED BY THE REVENUE. 6. IN THE RESULT, AS PRONOUNCED IN THE OPEN COURT, APP EAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH OCTOBER, 2013. SD/- SD/- (SANJAY ARORA) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATED: 17 TH OCTOBER, 2013 ITA NO. 9091/MUM/2010 M/S. MAGIC PARK (INDIA) P. LTD. 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 20, MUMBAI 4. THE CIT 9, MUMBAI CITY 5. THE DR, B BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.