M/s. Manorath Hotels Pvt.Ltd., Ahmedabad V. The ACIT.,Cent.Circle-1(4), Ahmedabad

ITSSA 15/AHD/2011

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 0691 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-04-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-04-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 12-01-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Keywords: Unexplained cash credit; Assessment record
• Section: 68

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER IT(SS) A NOS. 15 & 16/AHD/2011 / ASSESSMENT YEAR: 2005-06 & 2006-07 M/S. MANORATH HOTELS PVT LTD 2 ND FLOOR, NARAYAN CHAMBERS, NEAR PATANG HOTEL, NEHRU BRIDGE CORNER, ASHRAM ROAD, AHMEDABAD PAN : AABCM 0506 D ACIT, CENTRAL CIRCLE 1 (4), AHMEDABAD / // / (APPELLANT) / // / (RESPONDENT) ASSESSEE(S) BY : SHRI PRITESH SHAH, AR REVENUE BY : SHRI ROOPCHAND, SR. DR ! '#$ ! '#$ ! '#$ ! '#$ / DATE OF HEARING : 20/04/2015 %& ! '#$ / // / DATE OF PRONOUNCEMENT: 21/04/2015 '( '( '( '(/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST TWO SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)- I, AHMEDABAD, BOTH DATED 18.11.2010 FOR ASSESSMENT YEARS 2005-06 AND 2 006-07. IT(SS)A NO. 15/AHD/2011 ASSESSEES APPEAL : AY 20 05-06 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE ASS ESSEE IS AGAINST THE ADDITION OF RS.99,800/- MADE BY THE ASSESSING OFFIC ER FOR UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT. IT(SS)A NOS.15 & 16/AHD/2011 MANORATH HOTESL PVT LTD VS. ACIT AY: 2005-06 & 2006-07 2 3. AT THE TIME OF HEARING BEFORE US, IT IS STATED B Y THE LD. COUNSEL THAT DURING THE YEAR UNDER CONSIDERATION THERE WAS INCRE ASE OF SHARE CAPITAL BY RS.99,800/-. THE ASSESSEE HAD RECEIVED THE AMOUNT FROM SEVEN PARTIES TO WHOM SHARES RANGING FROM 1200 TO 1500 SHARES WERE A LLOTTED (TOTAL 9980 SHARES). HOWEVER, THE RELATIONSHIP OF THE SHAREHOLD ERS WITH THE DIRECTOR OF THE COMPANY IS NOT CORDIAL AND THEREFORE, THE SHARE HOLDERS HAVE NOT GIVEN CONFIRMATION FOR THE SHARES ALLOTTED TO THEM. HE, THEREFORE, SUBMITTED THAT THE MATTER MAY BE SET ASIDE TO THE FILE OF THE ASSE SSING OFFICER SO THAT THE ASSESSEE CAN REQUEST THE ASSESSING OFFICER TO GET I T VERIFIED FROM THE CONCERNED SHAREHOLDER EITHER BY ISSUING SUMMONS TO THEM OR FROM THEIR ASSESSMENT RECORDS. HE SUBMITTED THAT THE ASSESSEE HAS BEEN ABLE TO OBTAIN THE DETAILS OF PAN OF THE SHAREHOLDERS. 4. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, SUBMITTED THAT ENOUGH OPPORTUNITY WAS ALREADY ALLOWED TO THE ASSESSEE BY THE ASSESSING OFFICER AS WELL AS BY THE CIT(A) AND THER E IS NO JUSTIFICATION FOR SETTING ASIDE THE MATTER BACK TO THE FILE OF THE AS SESSING OFFICER. 5. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. FROM THE PE RUSAL OF THE ORDERS OF THE LOWER AUTHORITIES, IT IS EVIDENT THAT ADEQUATE OPPO RTUNITIES WERE ALREADY ALLOWED TO THE ASSESSEE FOR PRODUCING THE CONFIRMAT ION OF THE SHAREHOLDERS. THE ASSESSEE HAS NOT BEEN ABLE TO PRODUCE THE CONFI RMATION OF THE SHAREHOLDERS EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE CIT(A) OR EVEN BEFORE US. IN THE ABOVE CIRCUMSTANCES, IN OUR OPINION, THERE IS NO JUSTIFICATION FOR SETTING ASIDE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER. WE, THEREFORE, CONFIRM THE ORDER OF THE CI T(A) AND DISMISS THE APPEAL FILED BY THE ASSESSEE. IT(SS)A NOS.15 & 16/AHD/2011 MANORATH HOTESL PVT LTD VS. ACIT AY: 2005-06 & 2006-07 3 IT(SS)A NO. 16/AHD/2011 ASSESSEES APPEAL : AY 20 06-07 6. IN THIS APPEAL BY THE ASSESSEE, FOLLOWING GROUND S WERE RAISED:- 1. THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF AO OF MAKING ADDITION OF RS.5,62,838/- AS UNEXPLAINED CASH CREDI T U/S 68 OF THE INCOME TAX ACT, 1961, WHICH IS REQUESTED TO BE QUASHED. 2. THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF AO OF MAKING ADDITION OF RS.5,00,000/- AS ESTIMATED BUSINESS INC OME, WHICH IS REQUESTED TO BE QUASHED. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. WE FIND THAT IN ASSESSMENT YEAR 2007-08 ALSO SIMILAR ISSUE AROSE BEFORE THE ITAT. IN THE YEAR UNDER APPEAL, THE ASS ESSING OFFICER MADE ADDITION OF RS.5 LACS ON AD-HOC BASIS WHILE IN ASSE SSMENT YEAR 2007-08 THE ASSESSING OFFICER HAD MADE THE AD-HOC ADDITION OF R S.10 LACS. THAT IN ASSESSMENT YEAR 2007-08, THE ITAT VIDE ORDER DATED 18.11.2011 IN IT(SS)A NO.17/AHD/2011, SET ASIDE THE MATTER BACK TO THE FI LE OF THE ASSESSING OFFICER. THE FACTS ARE ADMITTEDLY IDENTICAL. WE, T HEREFORE, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE MAT TER BACK TO THE FILE OF THE ASSESSING OFFICER TO BE RE-ADJUDICATED IN THE LIGHT OF THE DIRECTION OF ITAT FOR ASSESSMENT YEAR 2007-08. WITH REGARD TO GROUN D NO.1 ALSO, IN OUR OPINION, THE MATTER NEEDS TO BE RE-EXAMINED AT THE LEVEL OF THE ASSESSING OFFICER. THE ASSESSING OFFICER HAD MADE THE ADDITIO N OF RS.5,62,838/- FOR UNEXPLAINED CREDIT IN THE ASSESSEES BANK ACCOUNT. THE ASSESSEE IS A COMPANY AND IT WAS STATED BY THE LD. COUNSEL THAT T HE COMPANY HAS MAINTAINED REGULAR BOOKS OF ACCOUNTS AND THE AMOUNT DEPOSITED IN THE BANK IS DULY DEBITED IN THE ASSESSEES BOOKS OF ACCOUNTS . SINCE WE HAVE ALREADY SET ASIDE THE MATTER BACK TO THE FILE OF THE ASSESS ING OFFICER WITH REFERENCE TO GROUND NO. 2 OF THE ASSESSEES APPEAL, IN OUR OPINI ON, THE ISSUE RAISED BY IT(SS)A NOS.15 & 16/AHD/2011 MANORATH HOTESL PVT LTD VS. ACIT AY: 2005-06 & 2006-07 4 THE ASSESSEE VIDE GROUND NO.1 ALSO NEEDS TO BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER. WE, THEREFORE, DIRECT THE ASSES SING OFFICER TO RE-EXAMINE THE ISSUE AFRESH WITH REFERENCE TO THE ASSESSEES B OOKS OF ACCOUNTS AND THE OTHER EXPLANATIONS/EVIDENCES AS MAY BE FURNISHED BY THE ASSESSEE. NEEDLESS TO MENTION THAT WHILE GIVING EFFECT TO OUR ORDER, THE ASSESSING OFFICER WILL ALLOW ADEQUATE OPPORTUNITY OF BEING HE ARD TO THE ASSESSEE AND THEREAFTER, HE WILL RE-ADJUDICATE BOTH THE ISSUES I N ACCORDANCE WITH LAW. 8. IN THE RESULT, THE ASSESSEES APPEAL VIDE IT(SS) A NO. 15/AHD/2011 IS DISMISSED AND IT(SS)NO. 16/AHD/2011 IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 21 ST APRIL, 2015 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 21/04/2015 BIJU T., PS '( ! ') *')' '( ! ') *')' '( ! ') *')' '( ! ') *')'/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ++ ' , / CONCERNED CIT 4. , ( ) / THE CIT(A) 5. )/0 ' , , / DR, ITAT, AHMEDABAD 6. 02 3 / GUARD FILE . '( '( '( '( / BY ORDER, TRUE COPY 4 44 4/ // / +5 +5 +5 +5 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD