DCIT, Erode V. NKCM Spinners Pvt Ltd., Erode

ITA 974/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96013 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 29-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR B NISCHAL
• Assessee Lawyers: S SRIDHAR
• Section: 68; 6

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' $ % , & ' BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A.NO . 974/MDS/2015 & C.O. NO.61/MDS/2015 (IN ITA NO.974/MDS/2015) ( / ASSESSMENT YEAR: 2010-11) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-I, ERODE. VS M/S. NKCM SPINNERS P.LTD. 18, ALAGIRI SINGH STREET, FORT ERODE-638 001. PAN:AACCN7095D ( /APPELLANT) ( /RESPONDENT/CROSS OBJECTOR) / APPELLANT BY : DR.B.NISCHAL, JCIT /RESPONDENT BY : MR.S.SRIDHAR, ADVOCATE /DATE OF HEARING : 16 TH JULY, 2015 /DATE OF PRONOUNCEMENT : 11 TH SEPTEMBER, 2015 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THE APPEAL AND THE CROSS OBJECTION ARE FILED BY THE REVENUE AND ASSESSEE RESPECTIVELY AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, COIMBATORE DATED 08.01.2015 FOR THE ASSESSMENT YEAR 2010-11 IN DELET ING THE ADDITION MADE UNDER SECTION 68 OF THE ACT. 2. THE ASSESSING OFFICER WHILE COMPLETING THE ASSES SMENT DISALLOWED ` 69,15,000/- ALONG WITH INTEREST THEREON IN RESPECT OF UNSECURED LOANS RECEIVED BY THE ASSESSEE FROM M/S. UMANG COMMO TRADE PVT.LTD., AND M/S. TOP GRAIN 2 ITA NO.974/MDS/2015 & C.O. NO.61/MDS/2015 VYAPAR P.LTD. STATING THAT IDENTITY, CREDIT WORTHIN ESS AND GENUINENESS OF THE ABOVE TWO PARTIES ARE NOT PROVED . THE COMMISSIONER OF INCOME TAX (APPEALS) FOLLOWING THE EARLIER ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR TH E ASSESSMENT YEAR 2009-10 DELETED THE ADDITION AGAINS T WHICH THE REVENUE IS IN APPEAL BEFORE US. 3. DEPARTMENTAL REPRESENTATIVE PLACES RELIANCE ON T HE ORDER OF THE ASSESSING OFFICER. 4. COUNSEL FOR THE ASSESSEE PLACING RELIANCE ON THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND CO- ORDINATE BENCH OF THIS TRIBUNAL PLEADS FOR DELETION OF ADDITION. 5. HEARD BOTH SIDES. PERUSED ORDERS OF LOWER AUTHOR ITIES. THE ASSESSING OFFICER MADE ADDITION UNDER SECTION 6 8 STATING THAT UNSECURED LOANS RECEIVED BY THE ASSESSEE FROM CREDITORS NAMELY M/S. UMANG COMMO TRADE PVT.LTD., AND M/S. TO P GRAIN VYAPAR P.LTD. ARE NOT PROVED AS GENUINE AND I DENTITY AND CREDITWORTHINESS OF THE CREDITORS ARE ALSO NOT PROVED. THE COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE AD DITION OBSERVING AS UNDER:- 3 ITA NO.974/MDS/2015 & C.O. NO.61/MDS/2015 9. AGGRIEVED WITH THE ORDER OF THE CIT(A) FOR THE ASST. YEAR 2009-10, THE DEPARTMENT FILED APPEAL BEFORE THE HON'BLE ITAT, CHENNAI. THE HON'BLE ITAT 'C' BENCH, CHENNAI WHILE DISPOSING OFF THE APPEAL, IN THEIR ORDER IN ITA NO.1259/MDS/2013 AND C.O. NO.154/MDS/2013 DATED 19.12.2014 IN THE VERY SAME APPELLANT'S CASE FOR THE ASST. YEAR 2009-10 UPHELD THE ORDER OF THE CIT(APPEALS) BY HOLDING THAT 'THE COMMISSIONER OF INCOME TAX (APPEALS) ON EXAMINING ALL THESE DETAILS CONCLUDED THAT EVIDENCES CONCLUSIVELY PROVED THAT TWO CREDITOR COMPANIES M/S. TOP GRAIN VYAPAR (P) LTD. AND M/S. UMANG COMMO TRADE P. LTD. DO EXIST AT THE ADDRESSES GIVEN BY THEM AND THEREFORE DELETED THE ADDITION MADE BY THE ASSESSING OFFICER IN RESPECT OF SHARE CALL ADVANCE MONEY AND UNSECURED LOANS WITH THE SAID CREDITOR COMPANIES. NONE OF THE FINDINGS OF THE COMMISSIONER OF INCOME TAX (APPEALS) WERE REBUTTED WITH ANY EVIDENCE BY THE REVENUE. IN THE CIRCUMSTANCES, WE UPHOLD THE ORDER OF THE: COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE ADDITION AND REJECT THE GROUNDS RAISED BY THE REVENUE. 10. IN VIEW OF THE FACTUAL POSITION DETERMINED BY THE HON'BLE TRIBUNAL THAT MIS. UMANG COMMO TRADE (P) LTD., KOLKATTA AND MIS. TOP GRAIN VYAPAR (P) LTD. RESPECTIVELY DO EXIST AT THE ADDRESSS GIVEN BY THEM, THE AMOUNT STANDING IN THEIR NAMES ALONG WITH INTEREST THEREON WILL STAND ALLOWED IN THE HANDS OF THE ASSESSEE. 11. FOLLOWING THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I, COIMBATORE AND RESPECTFULLY FOLLOWING THE ORDER OF THE HON'BLE ITAT, 'C' BENCH, CHENNAI CITED FOR THE ASST. YEAR 2009-10, THE ASSESSING OFFICER IS DIRECTED TO DELETE THE ADDITIONS AS ABOVE. THE GROUNDS OF APPEAL ARE ALLOWED. 6. ON GOING THROUGH THE ORDER OF THE COMMISSIONER O F INCOME TAX (APPEALS) AND THE ORDER OF THIS TRIBUNAL FOR THE 4 ITA NO.974/MDS/2015 & C.O. NO.61/MDS/2015 EARLIER ASSESSMENT YEAR, WE DO NOT FIND ANY INFIRMI TY IN DELETING THE ADDITION MADE BY THE COMMISSIONER OF I NCOME TAX (APPEALS). THEREFORE, WE SUSTAIN THE ORDER OF T HE COMMISSIONER OF INCOME TAX (APPEALS) AND REJECT THE GROUNDS RAISED BY THE REVENUE. 7. THE CROSS OBJECTION FILED BY THE ASSESSEE IS IN SUPPORT OF THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS ) AND SINCE WE SUSTAIN THE ORDER OF THE COMMISSIONER OF I NCOME TAX (APPEALS), THE CROSS OBJECTION OF THE ASSESSEE BECOMES INFRUCTUOUS AND THE SAME IS DISMISSED ACCORDINGLY. 8. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH SEPTEMBER, 2015. SD/- SD/- ( . ) ( ' )* ) ( A.MOHAN ALANKAMONY ) ( CHALLA NAGENDRA PRASAD ) , / ACCOUNTANT MEMBER ) , / JUDICIAL MEMBER ) /CHENNAI, . /DATED 11 TH SEPTEMBER, 2015 SOMU 12 32 /COPY TO: 1. ASSESSEE 2. ASSESSING OFFICER 3. 4 () /CIT(A) 4. 4 /CIT 5. 2 7 /DR 6. /GF .