BEETAL TRADING PRIVATE LIMITED, MUMBAI v. DCIT CC-2(3), MUMBAI

ITA 2867/MUM/2019 | 2010-2011
Pronouncement Date: 31-08-2021 | Result: Allowed

Appeal Details

RSA Number 286719914 RSA 2019
Assessee PAN AACCB8137A
Bench Mumbai
Appeal Number ITA 2867/MUM/2019
Duration Of Justice 2 year(s) 3 month(s) 24 day(s)
Appellant BEETAL TRADING PRIVATE LIMITED, MUMBAI
Respondent DCIT CC-2(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-08-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 31-08-2021
Last Hearing Date 08-06-2021
First Hearing Date 08-06-2021
Assessment Year 2010-2011
Appeal Filed On 06-05-2019
Judgment Text
INTHE INCOME TAXAPPELLATE TRIBUNAL MUMBAI BENCH DMUMBAI BEFORE SHRI MAHAVIR SINGH(VICEPRESIDENT)AND SHRI S.RIFAURRAHMAN (ACCOUNTANT MEMBER) ITANO. 2867/MUM/2019 ASSESSMENT YEAR: 2010-11 BEETAL TRADINGPRIVATELIMITED 105-C MEZANINEFLOOR 65 KUSHAL BHAVAN MARUTIMANDIRMARG 5 TH KUMBHARWADALANE MUMBAI-400004 VS. DY. COMMISSIONEROF INCOME TAX CENTRAL CIRCLE-2(3) INCOMETAX OFFICE OLD CGO MUMBAI-400020 PAN NO. AACCB8137 A APPELLANT RESPONDENT ITANO. 7553/MUM/2019 ASSESSMENT YEAR: 2010-11 M/S DOJAHAN TRADING PVT. LTD. 102 MEZANINEFLOOR 65 KUSHAL BHAVAN MARUTIMANDIRMARG 5 TH KUMBHARWADALANE MUMBAI - 400004 VS. DY. COMMISSIONEROF INCOME TAX CENTRAL CIRCLE-2(3) INCOMETAX OFFICE OLD CGO MUMBAI-400020 PAN NO. AACCD3340F APPELLANT RESPONDENT ITANO. 514/MUM/2020 ASSESSMENT YEAR: 2010-11 STEELAGEOVERSEASPVT. LTD. 105-A MEZANINEFLOOR 65 KUSHAL BHAVAN MARUTIMANDIRMARG 5 TH KUMBHARWADALANE MUMBAI - 400004 VS. DY. COMMISSIONEROF INCOME TAX CENTRAL CIRCLE-2(3) INCOMETAX OFFICE OLD CGO MUMBAI-400020 PAN NO. AAACF9624 N APPELLANT RESPONDENT ITA NO. 2867 7553&ORS/M/2019 BEETAL TRADINGPVT. LTD. & ORS. 2 ASSESSEEBY : MR. POOJAN MEHTA& MR. NEELKANTH KHANDELWAL ARS REVENUEBY : MR. BHARAT ANDHALE DR DATE OF HEARING : 27/07/2021 DATE OF PRONOUNCEMENT : 31/08/2021 ORDER PER S. RIFAURRAHMAN A.M. THECAPTIONEDAPPEALSFILEDBYTHEASSESSEEAREDIRECTEDAGAINSTTHE RESPECTIVE ORDERS PASSED BY THE CIT(A)-48 MUMBAI FOR AY 2010-11. AS THEISSUEINVOLVEDINTHECAPTIONEDAPPEALSAREINEXTRICABLYINTERLINKEDOR INFACTINTERWOVENANDHAVINGCOMMONISSUE THESAMEARETHEREFOREBEING TAKEN UP AND DISPOSED OFF BY WAY OF A CONSOLIDATED ORDER. FACTS BEING IDENTICAL WE BEGINWITHTHEITANO.2867/M/2019. 2. AT THE TIME OF HEARING THE LD. AR SUBMITTED THAT THE CASE OF THE ASSESSEE WAS REOPENED BASED ON THE INFORMATION RECEIVED FROM DCIT CENTRAL CIRCLE-2(2) MUMBAI THAT THE ASSESSEE HAS TAKEN ACCOMMODATION ENTRIES FROM M/S ADVANCE TECHNOLOGIES LTD. THE ASSESSING OFFICER COMPLETEDTHEASSESSMENTU/S147BYTREATINGTHESHARECAPITALANDSHARE PREMIUM AS BOGUS. THE LD. AR BROUGHT TO OUR NOTICE THE DECISION OF THE CO-ORDINATE BENCH IN THE CASE OF SETH CARBON AND ALLOYS PRIVATE LTD. (IN ITANO.2865/M/2019)DATED17.05.2021 INWHICHTHECO-ORDINATEBENCH CONSIDERED THE SIMILAR ISSUE AND DECIDED THE SAME IN FAVOUR OF THE ASSESSEE BY ADJUDICATING THE SHARE CAPITAL AND SHARE PREMIUM ARE NOT ACCOMMODATION ENTRIES SINCE THE ASSESSEE FURNISHED ALL THE RELEVANT ITA NO. 2867 7553&ORS/M/2019 BEETAL TRADINGPVT. LTD. & ORS. 3 DOCUMENTS AND DULY EXPLAINED THE NATURE AND SOURCE OF THE CREDIT IN THE FORM OF SHARE CAPITAL AND SHARE PREMIUM. HE BROUGHT TO OUR NOTICE THE PAGE 42 OF THE PAPER BOOK IN WHICH THE SAME SHARES OF ADVANCE TECHNOLOGIES LTD. WERE INVOLVED EXCEPT WITH VARIANCE IN THE NUMBER OF SHARES AND FIGURES. HE SUBMITTED THAT THE SIMILAR ISSUE IS ALREADY CONSIDEREDINFAVOUROFTHEASSESSEEANDTHESIMILARANDIDENTICALGROUNDS ARE RAISED BYTHE ASSESSEE. 3. ON THE OTHER HAND THE LD. DEPARTMENTAL REPRESENTATIVE (DR) AGREEDTHAT THISISSUE ISALREADY COVEREDIN FAVOUROFTHEASSESSEE. 4. CONSIDERED THE RIVAL SUBMISSIONS AND MATERIAL ON RECORD. THE SIMILARISSUEISALREADYCONSIDEREDBYTHECO-ORDINATEBENCHINTHECASEOF SETH CARBONANDALLOYSPRIVATE LTD.(SUPRA)ANDFOR THE SAKE OF CLARITYTHE RELEVANT GROUND AND DECISION OF THE BENCH IS REPRODUCED BELOW : [ITA NO.2828/MUM/2019 (A.Y.2010-11)] 9. ASSESSEE HAS RAISEDTHEFOLLOWINGGROUNDS :- 1.THEHONBLECIT(A) HAS ERREDIN CONFIRMINGTHEORDER OF LEARNEDASSESSING OFFICER IN RESPECT OF THE RE-OPENING OF THE ASSESSMENT WHILE ISSUING NOTICE U/S.148 OF THE INCOME TAX ACT 1961 INSPITE OF THE FACT THAT ORIGINAL ASSESSMENT WAS COMPLETED U/S.143(3) OF INCOME TAX ACT 1961. THE ASSESSMENT U/S.143 (3) R.W.S. 147 OF THE INCOME TAX ACT 1961 WAS COMPLETED MERELY ON THE BASIS OF INFORMATION RECEIVED FROM DCIT CENTRAL CIRCLE-2(2). IN VIEW OF THE ABOVE THE SAID ORDER PASSED SHOULD BE SQUASHED ANDNECESSARYDIRECTION SHOULDBEGIVENINTHIS REGARD. 2. WITHOUT PREJUDICE TO ABOVE ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE HONBLE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.5 00 00 000/-U/S.68OFTHEINCOMETAXACT 1961.THEHONBLECIT(A)HAS ERREDINCONSIDERINGTHESHARECAPITALISSUEDBYTHEAPPELLANTASUNEXPLAINED CASH CREDIT FOR THE YEAR UNDER CONSIDERATION. IT IS SUBMITTED THAT APPELLANT HASSUBMITTEDRELEVANTDOCUMENTSTOPROVETHEGENUINENESSOFTRANSACTIONS ITA NO. 2867 7553&ORS/M/2019 BEETAL TRADINGPVT. LTD. & ORS. 4 ANDCREDITWORTHINESS OF THEPARTY.ITIS THEREFOREPRAYEDTHATADDITIONMADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT SHALL BE DELETED AND NECESSARY DIRECTION SHALLBEGIVENINTHIS REGARD. 3. WITHOUT PREJUDICE TO ABOVE ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE HONBLE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.7 50 000/- (1.5% OF RS.5 00 00 000/-) BEING UNACCOUNTED COMMISSION EXPENDITURE ON THE ABOVESHARECAPITALISSUED BY THEAPPELLANT FOR THE YEAR UNDER CONSIDERATION. IT IS THEREFORE PRAYED THAT ABOVE ADDITION SHALL BE DELETEDANDNECESSARYDIRECTION SHALL BEGIVENINTHIS REGARD. 4. YOUR APPELLANT CRAVES TO ADD ALTER OR AMEND ANY OF THE GROUNDS OF APPEAL ONOR BEFORETHE DATE OF HEARINGOF APPEAL. THERELEVANT DECISION: 10. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WEFINDTHATASSESSEEHASRECEIVEDSHARECAPITALANDSHAREPREMIUMFROMTHEFOLLOWING PARTIES:- NAMEOFTHE PARTY NO. OF SHARES AMOUNT PAIDUP SHARE PREMIUM TOTAL AMOUNT RECEIVED YANTRA NATURAL RESOURCES (EARLIER KNOWN AS SHRI GANESH SPINNERS LTD) 12500 5 00 000/- 2 45 00 000/ - 2 50 00 000/ - ADVANCE TECHNOLOGIE S LIMITED 62500 4 00 000/- 1 96 00 000/ - 2 00 00 000/ - MAHAN INDUSTRIES LTD. 50000 1 00 000/- 49 00 000- 50 00 000/- TOTAL 12500 0 10 00 000/ - 4 90 00 000 5 00 00 000/ - 10.1.BOTHTHEPARTIESBEFOREUS MUTUALLYAGREEDTHATTHEFACTSOF THECASEPREVAILINGIN THE CASE OF THIS ASSESSEE ARE EXACTLY IDENTICAL TO THE FACTS PREVAILING IN THE CASE OF SETH ITA NO. 2867 7553&ORS/M/2019 BEETAL TRADINGPVT. LTD. & ORS. 5 CARBON AND ALLOYS PVT. LTD. FOR A.Y.2010-11 EXCEPT WITH VARIANCE IN THE NAME OF THE SHAREHOLDERS AND FIGURES. THE ADDITION HAS BEEN MADE U/S.68 OF THE ACT FOR THE SAME REASONSOFSETHCARBONANDALLOYSPVT.LTD.HENCE THEDECISIONRENDEREDTHEREONWOULD APPLY WITHEQUAL FORCEFOR THIS ASSESSEEALSO EXCEPT WITHNAME OF THESHAREHOLDERS AND FIGURES. RESPECTFULLY FOLLOWING THE ABOVE DECISION WE ARE INCLINED TO ALLOW THE GROUNDSOFAPPEAL RAISEDBYTHEASSESSEE. 5. FACTSBEINGIDENTICAL OURDECISIONFORITANO.2867/M/2019APPLIES MUTATISMUTANDIS TOITA NOS.7553/M/2019&514/M/2020. 6. IN THE RESULT THE APPEALSFILED BYTHE ASSESSEESARE ALLOWED. ORDER PRONOUNCEDINTHEOPENCOURTON 31/08/2021. SD/- SD/- (MAHAVIRSINGH) (S. RIFAUR RAHMAN) VICEPRESIDENT ACCOUNTANTMEMBER MUMBAI; DATED: 31/08/2021 RAHULSHARMA SR.P.S. COPYOFTHEORDERFORWARDED TO : 1. THEAPPELLANT 2. THERESPONDENT. 3. THECIT(A)- 4. CIT 5. DR ITAT MUMBAI 6. GUARDFILE. BY ORDER //TRUECOPY// (DY./ASSISTANTREGISTRAR) ITAT MUMBAI