M/s. Sainath Dwelling Private Limited, Bhopal V. THE ACIT CENTRAL -II, Bhopal

ITSSA 139/IND/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6276 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 30 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 07-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-06-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 08-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Unexplained cash credit; Bogus Share capital
• Section: 143(3); 153A; 68; 132

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER IT(SS) NO.139/IND/2017 ASSESSMENT YEAR: 2010-11 SAINATH DWELLING PRIVATE LTD. 20-21, SUN VILLA, CHUNABHATTI KOLAR ROAD, BHOPAL / VS. ACIT CENTRAL II BHOPAL ( APPELLANT ) ( RE VENUE ) PAN: AANCS8741C APPELLANT BY SHRI S.S. DESHPANDE, CA RE SPONDEN T BY SMT. ASHIMA GUPTA, CIT - DR DATE OF HEARING: 04.06.2019 DATE OF PRONOUNCEMENT: 07.06.2019 / O R D E R PER MANISH BORAD, A.M: THIS APPEAL AT THE INSTANCE OF ASSESSEE PERTAINING TO ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX(APPEALS)-3, BHOPAL, (I N SHORT CIT(A)), DATED 08.03.2017 WHICH IS ARISING OU T OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(HEREINAF TER SAINATH DWELLING PVT. LTD. IT(SS)ANO.139/IND/2017 2 CALLED AS THE ACT) FRAMED ON 29.01.2016 BY DCIT,(CEN TRAL)- II, BHOPAL. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS O F APPEAL: THAT ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME TAX(A) WAS NOT JUSTI FIED IN CONFIRMING THE ADDITION OF RS.40,000.00 UNDER SECTI ON 68 ON ACCOUNT OF UNEXPLAINED CASH CREDIT. 2. THE SOLE GRIEVANCE RAISED BY THE ASSESSEE IS AGAINST THE FINDINGS OF THE LD. CIT(A) CONFIRMING THE ADDITION O F RS.40,000/- U/S 68 OF THE ACT ON ACCOUNT OF UNEXPLAIN ED CASH CREDIT. 3. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE REC ORDS PLACED BEFORE US. BRIEF FACTS RELATING TO THIS ISSUE AR E THAT CONSEQUENT TO SEARCH U/S 132 OF THE ACT CONDUCTED ON 29.01.2014, ASSESSMENT U/S 153A R.W.S 143(3) OF THE ACT WAS FRAMED ON 29.01.2016 AND LEARNED ASSESSING OFFICER ( IN SHORT LD. AO) MADE AN ADDITION AT RS. 1,00,000/- FO R UNEXPLAINED SHARE CAPITAL RECEIVED FROM VARIOUS PERSONS OF AMOUNT RANGING BETWEEN RS.10,000/- TO RS.20,000/-. 4. THE MATTER CAME UP BEFORE THE LD. CIT(A) BUT PART O F ADDITION FOR UNEXPLAINED SHARE CAPITAL WAS CONFIRMED IN RESPECT OF THE FOLLOWING PERSONS: 1. PRAHLAD DAS GOYAL RS.14,000/- 2. OMWATI GOYAL RS.13,000/- SAINATH DWELLING PVT. LTD. IT(SS)ANO.139/IND/2017 3 3. JYOTI GOYAL RS.13,000/- TOTAL RS.40,000/- 5. LD. AO MADE THE ADDITIONS BEING NOT SATISFIED WITH THE CREDITWORTHINESS OF THE SHARE APPLICANTS. LD. CIT(A) CONFIRMED THE ADDITIONS OBSERVING THAT THE ADDITIONS H AVE NOT BEEN MADE FOR UNEXPLAINED INCOME IN THE HANDS OF PRAHLAD DAS GOYAL AND OMWATI GOYAL BY THE ASSESSING AUTHORITY AND IN CASE OF JYOTI GOYAL ADDITION WAS SUSTAIN ED MERELY FOR SHOWING A LOSS OF RS.5,29,582/- DURING A. Y. 2010-11. 6. FROM PERUSAL OF RECORDS, WE OBSERVE THAT THE CONFIRMATION OF ACCOUNT, PERMANENT ACCOUNT NO. AND INCOME TAX RETURN WERE DULY PLACED BEFORE THE LD. AO . AMOUNT BEING LESS THAN RS.20,000/-, THEREFORE, RECEI VING THE MONEY IN CASH TOWARDS SHARE CAPITAL WAS NOT MANDATORY AT THAT POINT OF TIME. 7. AS REGARDS CREDITWORTHINESS OF THE SHARE APPLICANTS IS CONCERNED, WE FIND THAT IN THE CASE OF PRAHLAD DAS GOYAL ASSESSMENT U/S 143(3) OF THE ACT FOR A.Y. 2010-11 HAS BEEN FRAMED, ASSESSING THE INCOME AT RS.4,29,98,720/- AND IN THE CASE OF OMWATI GOYAL INCOME HAS BEEN ASSESSED SAINATH DWELLING PVT. LTD. IT(SS)ANO.139/IND/2017 4 AT RS.1,70,61,685/- BY THE ASSESSING AUTHORITIES. WHEN THE ASSESSING AUTHORITIES HAVE THEMSELVES ASSESSED INCOME AT THE ABOVE STATED FIGURE, THERE COULD HARDLY BE ANY DOUB T IN ACCEPTING THE CREDITWORTHINESS OF THE TWO CREDITORS OF HAVING PAID SMALL AMOUNT TOWARDS SHARE CAPITAL AT RS.14,000/- AND RS.13,000/- RESPECTIVELY. 8. AS REGARDS SHARE APPLICANT JYOTI GOYAL, REGULAR INCOME TAX RETURN HAVE BEEN FILED AND MERELY SHOWING LOSS AT RS.5,29,582/- FOR A.Y. 2010-11 CANNOT BE THE SOLE BAS IS TO QUESTION THE CREDITWORTHINESS OF THE SHARE APPLICANT OF HAVING PAID SMALL SUM IN CASH AT RS.13,000/- TOWARDS SHARE APPLICATION MONEY. NO OTHER CONTRARY FINDINGS HAV E BEEN PLACED BY THE LOWER AUTHORITIES EVEN THOUGH RESP ECTIVE DETAILS OF THE SHARE APPLICANTS WERE THERE WITH THEM. 9. WE, THEREFORE, IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE ARE SATISFIED WITH THE CREDITWORTHINESS OF T HE SHARE APPLICANTS NAMELY PRAHLAD DAS GOYAL, OMWATI GOYAL & JYOTI GOYAL AND THE IDENTITY AND GENUINENESS OF TRANSACTIONS HAS NOT BEEN DOUBTED AT ANY STAGE. WE, THEREFORE, DELETE THE ADDITION OF RS.40,000/- MADE I N THE HANDS OF ASSESSEE U/S 68 OF THE ACT. SAINATH DWELLING PVT. LTD. IT(SS)ANO.139/IND/2017 5 10 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 07 .06.2019. SD/- (KUL BHARAT) SD/- (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER INDORE; DATED : 07/06/2019 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR