DCIT, CC-I, Ludhiana V. M/s Genex Polyfab Ltd., Ludhiana

ITA 955/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7922 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 06-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR ASHISH GUPTA
• Keywords: Gift; Income from undisclosed sources; Source of fund; Additional evidence

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJ AY GARG, JUDICIAL MEMBER ./ ITA NO. 955/CHD/2018 ! / ASSESSMENT YEAR : 2012-13 THE DCIT, CC-1, LUDHIANA VS. '# M/S GENEX POLYFAB LTD., 228-D, INDUSTRIAL AREA-A, CHEEMA CHOWK, LUDHIANA $ % ./ PAN NO: AADCG7382D $&/ APPELLANT ()$& / RESPONDENT *+ , - / ASSESSEE BY : SH. SANJAY SOOD, CA , - / REVENUE BY : DR. ASHISH GUPTA, CIT DR . / , +0% / DATE OF HEARING : 11.04.2019 12! , +0% / DATE OF PRONOUNCEMENT : 22.04.2019 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 06.04.2018 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-2, JALANDHAR [HEREINAFTER REFERRED TO AS CIT(A)]. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE IN THIS APPEAL :- 1. WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) HAS ERRED IN LAW IN ACCEPTING THE PLEA OF THE ASSESSEE THAT AMOUNT OF RS. 9.72 CRORE REPRESENTED GIFTS RECEIVED BY SH. ANUBHAV AGGARWAL FROM HIS BROTHER-IN-LAW SH. ROMAN UMAROV WHEN NO SUCH EXPLANATION/ EVIDENCE WAS FILED DURING ASSESSMENT PROCEEDINGS. 2. WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) HAS ERRED IN LAW IN ACCEPTING ITA NO.955-C-18- GENEX POLYFAB LTD., LUDHIANA 2 THE EXPLANATION OF THE ASSESSEE WHICH WAS NEVER FURNISHED BEFORE THE AO, THEREBY ADMITTING ADDITIONAL EVIDENCE / GROUNDS IN VIOLATION OF RULE 46A OF THE INCOME TAX RULES. 3. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL ON OR BEFORE IS HEARD AND DISPOSED OFF. 3. THE BRIEF FACTS RELATING TO THE ISSUE ARE THAT T HE ASSESSING OFFICER NOTICED THAT DURING THE YEAR UNDER CONSIDERATION A SUM OF 9.72 CRORES WAS FOUND CREDITED IN THE ACCOUNT OF THE ASSESSEE W HICH WAS RECEIVED FROM RUSSIA UNDER THE HEAD AS PROMOTER CONTRIBUTION. T HE ASSESSING OFFICER ASKED THE ASSESSEE TO PROVE THE IDENTITY, CREDITWOR THINESS AND GENUINENESS OF THE SOURCE OF THE FUNDS. SINCE THE ASSESSEE COUL D NOT SATISFY THE ASSESSING OFFICER ABOUT THE SOURCE OF FUNDS, THE AS SESSING OFFICER MADE THE IMPUGNED ADDITIONS INTO THE INCOME OF THE ASSES SEE TREATING THE SAID AMOUNT AS OWN UNACCOUNTED INCOME OF THE ASSESSEE. 4. BEING AGGRIEVED BY THE ABOVE NOTED INCOME OF THE ASSESSEE, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). 5. BEFORE THE LD. CIT(A), THE ASSESSEE SUBMITTED TH AT THE AFORESAID AMOUNT OF 9.72 CORES HAD BEEN INVESTED BY THE DIRECTOR AND P ROMOTER OF THE ASSESSEE COMPANY NAMELY SHRI ABUBHAV AGGARWAL, WHO WAS AN NRI AND MARRIED WITH A RUSSIAN NATIONAL. THAT THE SOURC E OF AMOUNT IN THE HANDS OF SHRI ANUBHAV AGGARWAL WAS GIFT FROM HIS BR OTHER IN LAW BASED IN RUSSIA. THE SAID AMOUNT OF 9.72 CRORES RECEIVED FROM HIS BROTHER IN LAW WAS INVESTED BY SHRI ABHINAV AGGARWAL IN THE COMPAN Y. TO PROVE THIS CONTENTION, THE ASSESSEE ALSO FURNISHED COPIES OF THE BANK STATEMENTS, THE ITA NO.955-C-18- GENEX POLYFAB LTD., LUDHIANA 3 CONFIRMATION FROM SHRI ANUBHAV AGGARWAL AND ALSO T HE COPY OF THE ACCOUNT OF SHRI ANUBHAV AGGARWAL IN THE BOOK OF THE ASSESSEE SHOWING THE INVESTMENT MADE BY SHRI ANUBHAV AGGARWAL, THE PROMOTER - DIRECTOR OF THE COMPANY. IT WAS ALSO EXPLAINED BEFORE THE L D. CIT(A) THAT EVEN IN THE ASSESSMENT PROCEEDINGS OF SHRI ANUBHAV AGGARWAL , AN ADDITION OF 20,27,66,730/-, WHICH INCLUDED THE AFORESAID AMOUN T OF 9.72 CORES, WAS MADE IN THE HANDS OF SHRI ANUBHAV AGAGRAWAL IN HIS INDIVIDUAL CAPACITY. SINCE THE ADDITION OF THE AMOUNT OF 20,27,66,730/- WHICH INCLUDED THE AFORESAID AMOUNT OF 9.72 CORES WAS MADE INTO THE INCOME OF SHRI ANUBHAV AGGARWAL, IN THE CIRCUMSTANCES, THE SOURCE OF FUNDS AT THE HANDS OF SHRI ANUBHAV AGGARWAL WAS DULY PROVED. THE ASSES SEE HAS ALSO PROVED GENUINENESS OF THE TRANSACTIONS BY FURNISHING THE C OPIES OF THE BANK ACCOUNTS TO PROVE THAT THE AFORESAID ENTRIES WERE ROUTED THROUGH THE BANK ACCOUNT INTO THE ACCOUNT OF THE ASSESSEE- COMPANY. THE LD. CIT(A) CONSIDERING THE ABOVE DOCUMENTARY EVIDENCE, DELETED THE ADDITION SO MADE BY THE ASSESSING OFFICER. 6. AFTER HEARING THE LD. REPRESENTATIVES OF BOTH TH E PARTIES, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ABOVE FACTUAL F INDINGS GIVEN BY THE CIT(A) WHICH REMAIN UNREBUTTED. THERE IS NO MERIT IN THE APPEAL OF THE REVENUE AND THE SAME IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.04.2019. SD/- SD/- ( . . / N.K. SAINI) ( ! / SANJAY GARG) '#$ / VICE PRESIDENT % & / JUDICIAL MEMBER DATED : 22.04.2019 .. ITA NO.955-C-18- GENEX POLYFAB LTD., LUDHIANA 4 3 , (+45 65!+ / COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. ()$& / THE RESPONDENT 3. . 7+ / CIT 4. . 7+ ( )/ THE CIT(A) 5. 58 (+9 , 0 9 , :;<= / DR, ITAT, CHANDIGARH 6. < >/ / GUARD FILE 3 . / BY ORDER, ? / ASSISTANT REGISTRAR