M/s Paresh Exports Pvt. Ltd., Bangalore V. ACIT, Bangalore

ITA 989/BANG/2010

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9342 (ITAT-BANGALORE)
• Duration Of Justice: 6 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-08-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 13-08-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Validity of assessment
• Section: 69; 56

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE SHRI A .K. GARODIA , ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO , JUDICIAL MEMBER I.T.A. NO. 989 /BANG/201 0 (ASSESSMENT YEAR : 20 02 - 03 ) M/S. PARESH EXPORTS PVT. LTD., NO.104, 1 ST FLOOR, 56 C ENTRE POINT, RESIDENCY ROAD, BANGALORE - 560 025 PAN AAACP 8236G VS. ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(4), BANGALORE. APPELLANT RESPONDENT. APPELLANT BY : NONE. RESPONDENT BY : MS. NEERA MALHOTRA, CIT (D.R) DATE OF H EARING : 04.1 0 .2016. DATE OF P RONOUNCEMENT : 13 .10. 201 6 . O R D E R PER SHRI VIJAY P AL RAO, J. M. : THIS APPEAL BY THE ASSESS EE IS DIRECTED AGAINST THE ORDER DT.15.6.2010 OF COMMISSIONER OF INCOME TAX (APPEALS) - VI, BANGALORE FOR THE ASSESSMENT YEAR 2002 - 03. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE WHEN THE APEPAL WAS CALLED FOR HEARING. IT TRANSPIRED FROM THE RECORD THAT DESPITE REPEATED NOTICES ISSUED THROUGH RPAD, THE ASSESSEE IS NOT RESPONDING AND PURSUING THIS APPEAL. SOME 2 ITA NO. 989 /BANG/ 201 0 OF THE NOTICES HAVE RECEIVED BACK UNSERV ED WITH THE POSTAL REMARK ADDRESSEE LEFT . INTHESE FACTS AND CIRCUMSTANCES OF THE CASE, WE PROPOSE T O DISPOSE OFF THIS APPEAL EX - PARTE. 3. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN THIS APPEAL : 5. THE AUTHORITIES FURTHER FAILED TO ARRIVE AT A CONCLUSION THAT THERE EXISTS COMPLEXITY IN THE TRANSACTIONS OF THE APPELLANT AND WITHOUT MAKING A HONEST EFFORT TO UNDERSTAND THE TRANSACTIONS INVOKED THE PROVISIONS OF SECTION 142(2A OF THE ACT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 3 ITA NO. 989 /BANG/ 201 0 6. WITHOUT PREJUDICE THE APPELLANT DENIES ITSELF LIABLE TO BE TAXED ON THE TOTAL INCOME AS DETERMINED BY THE LD. ASSESSING OFFICER OF RS. 92,62,153 AS AGAINST THE RETURNED INCOME OF RS.17,62,153 UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. WE HAVE HEARD THE LEARNED D.R. AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THE ASSESSEE HAS CHALLENGED THE V ALIDITY OF ASSESSMENT AS WELL AS THE DIRECTIONS ISSUED UNDER SECTION 142(2A) OF THE INCOME TAX ACT, 1961 (IN SHORT 4 ITA NO. 989 /BANG/ 201 0 'THE ACT') FOR GETTING THE ACCOUNTS OF THE ASSESSEE AUDITED. THE CIT (APPEALS) HAS GIVEN A DETAILED FINDING IN PARA 2.1.2 ON THE ISSUE OF V ALIDITY OF DIRECTION FOR STATUTORY AUDIT UNDER SECTION 142(2A) OF THE ACT AS UNDER : 5 ITA NO. 989 /BANG/ 201 0 6 ITA NO. 989 /BANG/ 201 0 7 ITA NO. 989 /BANG/ 201 0 IN THE ABSENCE OF ANY CONTRARY FACTS AND ARGUMENTS BROUGHT BEFORE US, WE DO NOT FIND ANY ERROR OR ILLEGALITY IN THE ORDER OF THE CIT (APPEALS) FOR THIS ISSU E. 5. AS REGARDS THE VALIDITY OF ASSESSMENT UNDER SECTION 1 53A , THE CIT (APPEALS) HAS DEALT WITH THIS ISSUE IN PARAS 2.2.2 & 2.2.3 AS UNDER : 8 ITA NO. 989 /BANG/ 201 0 9 ITA NO. 989 /BANG/ 201 0 IN THE ABSENCE OF ANY SPECIFIC ILLEGALITY OR ERROR POINTED OUT IN THE FINDING OF CIT (APPEALS), WE UPHOLD THE ORDER OF THE CIT (APPEALS) ON THIS ISSUE. 6. THE NEXT ISSUE IS REGARDING ADDITION OF RS.75 LAKHS ON ACCOUNT OF SHARE APPLICATION MONEY INTRODUCED BY THE ASSESSEE IN THE BOOKS OF ACCOUNTS. WE FIND THAT THE CIT (APPEALS) HAS DEALT WITH EACH A ND EVERY ARGUMENT OF THE ASSESSEE AND GIVEN A FINDING THAT THE ASSESSEE HAS FAILED TO EXPLAIN THE SOURCE OF SHARE APPLICATION MONEY AND THEREFORE THE ADDITION MADE UNDER SECTION 69 OF THE ACT WAS CONFIRMED BY THE CIT (APPEALS). THE RELEVANT CONCLUSION OF THE CIT (APPEALS) IS GIVEN IN PARA 2.3.3 AS UNDER : 10 ITA NO. 989 /BANG/ 201 0 WE FIND THAT DESPITE SUFFICIENT OPPORTUNITY WAS GIVEN TO THE ASSESSEE, THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE TO PROVE THE IDENTITY OF THE SHARE 11 ITA NO. 989 /BANG/ 201 0 APPLICANT. SINCE IT IS PRIVATE LIMITED COMPANY AND SHARES OF THE PRIVATE LIMITED COMPANY CAN BE ISSUED ONLY TO THE KNOWN AND CLOSE PERSONS OF THE EXISTING SHARE - HOLDERS/PROMOTERS OF THE COMPANY THEREFORE , IT IS THE PRIMARY ONUS O F THE ASSESSEE TO PROVE THE GENUINENESS OF THE TRANSACTION. HENCE WE DO NOT FIND ANY ERROR OR ILLEGALITY IN THE ORDER OF THE CIT (APPEALS) ON THIS ISSUE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13TH OCT., 201 6 . SD/ - (A .K. GARODIA ) ACCOUNTANT MEMBER S D/ - (VIJAY PAL RAO) JUDICIAL MEMBER BANGALORE, DT. 13.10.2016. *REDDY GP COPY TO : 1. APPELLANT 2. RESPONDENT 3. C.I.T. 4. CIT(A) 5. DR, ITAT, BA NGALORE. 6. GUARD FILE. BY ORDER ASST. REGISTRAR, IT AT, BANGALORE