Goldi Solar Pvt.Ltd.,(Formerly Known as Goldi Green Technologies Pvt. Ltd.), Surat V. Income Tax Officer, Ward -1(1)(2), Surat

SA 03/SRT/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8876 (ITAT-SURAT)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 30-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILAM DAS GUPTA
• Keywords: Unexplained cash credit
• Section: 69C; 143(3); 68

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND MS MADHUMITA ROT, JUDICIAL MEMBER STAY PETITION NO.0 3 /SRT /2019 IN ./ ITA NO. 320 / SRT /20 1 8 / ASSTT. YEAR: 20 1 2 - 20 1 3 GOLDI SOLAR PVT. LTD. , (FORMER LY KNOWN AS GOLDI GREEN TECHNOLO GIES PVT. LTD.) 110 - A/B , 21 ST CENTURY BUSINESS CENTRE, UDHNA DARWAJA , RING ROAD , SURAT - 395002 . P AN : AAECG1248F VS. D.C.I.T , CIRCLE - 1(1)(2) , SURAT - 395002. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : MS. URVASHI SHODHAN , AR REVENUE BY : MS. NILAM DAS GUPTA , SR.DR / DATE OF HEARING : 19 / 0 2 /201 9 / DATE OF PRONOUNCEMENT: 20 / 0 2 /201 9 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE ASSESSEE IN THIS PETITION IS SEEKING A STAY ON THE RECOVERY OF THE OUTSTANDING DEMAND AMOUNTING TO RS. 2,45,61,175/ - ONLY. 2. THE ASSESSEE IN THE PRESENT CASE IS A PRIVATE LIMITED COMPANY AND ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADING OF SOLAR PANELS. THE SP NO. 03/SRT /20 1 9 IN ITA NO.320/SRT/2018 A.Y.2012 - 13 2 ASSESSMENT FOR THE YEAR UNDER CONSIDERATION WAS COMPLETED U/S 143(3) OF THE ACT AFTER MAKING CERTAIN ADDITION TO THE TOTAL INCOME OF THE ASSESSEE AT RS. 6,96,41,320.00 VIDE ORDER DATED 31 - 0 3 - 2015. ON APPEAL TO THE LD. CIT - A, THE ADDITIONS WERE CONFIRMED VIDE ORDER DATED 4 - 4 - 2018. 3. THE ADDITIONS WERE MADE BY THE AO ON ACCOUNT OF UNEXPLAINED CASH CREDIT U/S 68 OF THE AC T FOR RS. 7,11,04,000.00 AND UNACCOUNTED COMMISSION PAYMENT UNDER SECTION 69C OF THE ACT FOR RS. 7,04,000.00. 4. THE LD AR AT THE TIME OF HEARING BEFORE US SUBMITTED THAT THE DIRECTORS OF SHARE APPLICANT COMPANY ARE THE SAME INDIVIDUALS WHO ARE ALSO THE DIRECTORS IN THE ASSESSEE COMPANY. HOWEVER, THE ADDITION WAS MADE BY THE AO WHICH WAS SUSTAINED BY THE LD CIT(A) WITHOUT CONSIDERING THE SUPPORTING DOCUMENTS FILED AT THE TIME OF THE HEARING . 4.1 THE LD. AR BECAUSE OF THE ABOVE SUBMITTED THAT THE ASSESSEE HAS A VERY FAIR CHANCE TO SUCCEED IN THE APPEAL PENDING BEFORE THE ITAT. IN ADDITION TO THE ABOVE, THE LD. AR BEFORE US FURTHER SUBMITTED THAT THE BUSINESS OF THE ASSESSEE HAS COME DOWN DRASTICALLY DUE TO THE CUT - THROAT COMPETITION WITH THE CHINESE COMPANIES. THE LD. AR ALSO SUBMITTED THAT THE ASSESSEE HAS NO LIQUID FUND AVAILABLE WITH IT. THEREFORE, IT WILL CAUSE GENUINE HARDSHIP IF THE COERCIVE ACTIONS ARE TAKEN FOR THE RECOVERY OF THE OUTSTANDING DEMAND FROM THE ASSES SEE. THE LD. AR IN SUPPORT OF HIS CLAIM DREW OUR ATTENTION ON THE BALANCE SHEET AS ON 30 TH SEPTEMBER 2018 AS WELL AS BANK STATEMENT TO JUSTIFY THAT THERE IS NO LIQUID FUND AVAILABLE WITH THE ASSESSEE. THE COPIES OF THE BALANCE SHEET AND BANK STATEMENT ARE AVAILABLE ON RECORD. 5. ON THE OTHER HAND, LD . DR OPPOSED GRANTING THE BLANKET STAY FOR THE RECOVERY OF OUTSTANDING DEMAND. SP NO. 03/SRT /20 1 9 IN ITA NO.320/SRT/2018 A.Y.2012 - 13 3 6 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. HAVING REGARD TO THE FACTS OF THE CASE AS DIS CUSSED ABOVE, WE ARE INCLINED TO GRANT A STAY OF OUTSTANDING DEMAND SUBJECT TO THE DEPOSIT OF RS.25,00,000/ - TOWARDS THE OUTSTANDING DEMAND AS DISCUSSED ABOVE IN TWO INSTALLMENTS . THE FIRST INSTALLMENT OF RS. 10 LACS SHALL BE DEPOSITED ON OR BEFORE 25 TH FE BRUARY 2019 AND THE REMAINING INSTALLMENT OF RS. 15,00,000/ - WILL BE DEPOSITED ON OR BEFORE 25 TH MARCH 2019. ACCORDINGLY, WE DIRECT THAT THE SAID OUTSTANDING DEMAND BE KEPT IN ABEYANCE TILL THE DISPOSAL OF THE APPEAL BY THE TRIBUNAL OR FOR 6 MONTHS WHICHEV ER IS EARLIER. WE ALSO DIRECT THE REGISTRY TO FIX THE APPEAL OF THE ASSESSEE FOR HEARING OUT OF TURN ON 25 TH APRIL 2019, WHICH IS A DATE AGREED BY THE LD REPRESENTATIVE OF BOTH THE SIDES AS CONVENIENT TO THEM. 6.1 IT IS ALSO IMPORTANT TO NOTE THAT THE ASS ESSEE SHALL NOT SEEK ANY ADJOURNMENT OF THE CASE ON THE DATE OF HEARING AND IF IT DOES SO, THE BENCH HEARING THE APPEAL OF THE ASSESSEE WILL BE AT LIBERTY TO REVOKE THIS ORDER GRANTING THE STAY OF RECOVERY OF THE OUTSTANDING DEMAND. THUS, THE STAY PETITION FILED BY THE ASSESSEE IS ALLOWED IN TERMS OF ABOVE. 7. IN THE RESULT, THE STAY PETITION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 20 / 02/ 201 9 AT AHMEDABAD . SD/ - SD/ - ( MS MADHUMITA ROY ) JUDICIAL MEMBER ( WASEEM AHMED ) ACCOUTANT MEMBER (TRUE COPY) AHMEDABAD ; DATED 20 / 02 /201 9