M/s Ultimate Constructions India Private Limited, Bhopal V. THE ACIT CENTRAL -II, Bhopal

ITSSA 140/IND/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2637 (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: 2012-2013
• 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; Set aside
• 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.140/IND/2017 ASSESSMENT YEAR: 2012-13 ULTIMATE CONSTRUCTION INDIA P. LTD. G-1, KAMDHENU TOWER, E 2/22, ARERA COLONY, BHOPAL / VS. ACIT CENTRAL II BHOPAL ( APPELLANT ) ( RE VENUE ) PAN: AABCU76 03B 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 2012-13 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 ULTIMATE CONSTRUCTION INDIA P. LTD. IT(SS)NO.140/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.50,000.00 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.50,000/- 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 AT THE BUSINESS PREMISES OF THE ASSESSEE B EING PRIVATE LIMITED COMPANY. SUBSEQUENTLY, ASSESSMENT U/S 153A R.W.S 143(3) OF THE ACT WAS FRAMED ON 29.01.2016 AND THE SOLE ADDITION FOR A.Y. 2012-13 WAS FOR UNEXPLAINE D CASH CREDIT U/S 68 OF THE ACT AT RS. 1,00,000/- TOWAR DS THE SHARE CAPITAL RECEIVED FROM TWO PERSONS NAMELY BHUPENDR A VISHWAKARMA & VIPIN CHOUHAN AT RS.50,000/- EACH. 4. APPEAL BY THE ASSESSEE AGAINST THE ADDITION OF RS.1,00,000/- BROUGHT PART RELIEF AS THE LD. CIT(A) O N ULTIMATE CONSTRUCTION INDIA P. LTD. IT(SS)NO.140/IND/2017 3 OBSERVING THAT AS THE CORRESPONDING ADDITION HAS ALREAD Y BEEN MADE IN THE HANDS OF BHUPENDRA VISHWAKARMA, THEREFORE, THE ADDITION OF RS.50,000/- NEEDS TO BE D ELETED AND IN THE CASE OF VIPIN CHOUHAN AS NO SUCH ADDITION WAS MADE IN ITS OWN CASE ADDITION WAS SUSTAINED. 5. FROM PERUSAL OF RECORDS WE FIND THAT MR. VIPIN CH OUHAN IS DIRECTOR OF THE ASSESSEE COMPANY. HE FILES REGULAR INCOME TAX RETURN. CONFIRMATION OF ACCOUNT HAS BEEN FI LED. IDENTITY OF THE SHARE APPLICANT AND GENUINENESS OF THE TRANSACTION IS NOT DOUBTED AT ANY STAGE. AS REGARDS CREDITWORTHINESS OF MR. VIPIN CHOUHAN IS CONCERNED W E OBSERVE THAT HE DECLARED INCOME OF RS. 37,20,000/- FO R A.Y 2012-13. IN HIS CASE ASSESSMENT U/S 153A R.W.S 143(3) OF THE ACT WAS FRAMED ON 23.03.2016 ASSESSING INCOME AT RS.62,72,427/-. 6. IN THESE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE W HERE MR. VIPIN CHOUHAN HAS DISCLOSED INCOME OF RS.37,20,00 0/- AND REVENUE AUTHORITIES HAVE ASSESSED INCOME AT RS.62,72,427/-, RAISING QUESTION ABOUT THE CREDITWORTHINESS OF MR. VIPIN CHOUHAN TO HAVE GIVEN SMALL AMOUNT OF RS.50,000/- TOWARDS SHARE CAPITAL IN THE ASSESSEE COMPANY IS NOT JUSTIFIED AT THE END OF REVENU E AUTHORITIES. WE ARE THEREFORE OF THE CONSIDERED VIEW THAT ULTIMATE CONSTRUCTION INDIA P. LTD. IT(SS)NO.140/IND/2017 4 THE IMPUGNED ADDITION OF RS.50,000/- MADE U/S 68 OF THE ACT FOR UNEXPLAINED CREDIT NEEDS TO BE DELETED. WE, ACCORDINGLY, SET ASIDE THE ORDER OF THE LOWER AUTHORIT IES AND ALLOW THE APPEAL OF THE ASSESSEE. 7 . 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