M/S COIGN BUILDERS PVT. LTD., Bhopal v. THE ITO 1(2), Bhopal

ITA 460/IND/2016 | 2009-2010
Pronouncement Date: 28-09-2016 | Result: Allowed

Appeal Details

RSA Number 46022714 RSA 2016
Assessee PAN AABCC6019R
Bench Indore
Appeal Number ITA 460/IND/2016
Duration Of Justice 4 month(s) 23 day(s)
Appellant M/S COIGN BUILDERS PVT. LTD., Bhopal
Respondent THE ITO 1(2), Bhopal
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 28-09-2016
Date Of Final Hearing 19-09-2016
Next Hearing Date 19-09-2016
Assessment Year 2009-2010
Appeal Filed On 05-05-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE .. ..!' #$ # !% BEFORE SHRI D.T. GARASIA JUDICIAL MEMBER AND SHRI O.P. MEENA ACCOUNTANT MEMBER I.T.A. NO. 460/IND/2016 ASSESSMENT YEAR: 2009-10 M/S COIGN BUILDERS PVT. LTD. BHOPAL PAN AABCC 6019R :: & / APPELLANT VS ITO- 1(2) BHOPAL :: ()& / RESPONDENT /APPELLANT BY SHRI ASHISH GOYAL & SHRI N.D.PATWA RESPONDENT BY SHRI MOHD. JAVED ! DATE OF HEARING 19.9.2016 '#$% ! DATE OF PRONOUNCEMENT 19.09.2016 ' O R D E R PER SHRI D.T. GARASIA JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-I BHOPAL DATED 29.2.2016. M/S COIGN BUILDERS ITA NO. 460/IND/2016 2 2. THE ONLY ISSUE TAKEN BY THE ASSESSEE IS THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADI OF RS.30 20 050/- I.E. RS.27 25 000/- ON ACCOUNT OF SHARE MONEY AND RS.2 95 050/- ON ACCOUNT OF INTEREST ON ADVANCES. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE CASE OF THE ASSESSEE WAS SELECTED FOR THE REASON THAT UPON PERUSAL OF SCHEDULE A FORMING PART OF BALANCE SHEET IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE HAS INTRODUCED FRESH CAPITAL GAIN AMOUNTING TORS. 27 25 000/- AND IN SUPPORT OF THE SAME FILED ONLY LIS T OF PERSONS WHO CONTRIBUTED TO SHARE APPLICATION MONEY BUT THE ASSESSEE FAILED TO PRODUCED THE PERSONS WHO HAVE CONTRIBUTED TO SHARE APPLICATION AND HAS THUS FAILED TO ESTABLISH GENUINENESS OF SHARE APPLICATION MONEY BY VIOLATING ESSENTIAL REQUIREMENTS OF SECTION 68 OF THE ACT. THE ASSESSING OFFICER THEREFORE MAD E M/S COIGN BUILDERS ITA NO. 460/IND/2016 3 ADDITION OF RS. 27 25 000/- TOWARDS UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT. 4. SO FAR AS THE ADDITION OF RS.2 95 050/- ON ACCOUNT OF INTEREST ON ADVANCES IS CONCERNED BRIEFLY STATED THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS GIVEN INTEREST FREE LOANS AMOUNTING TO RS.19 67 000/- BY DIVERTING INTEREST BEARING FUNDS FROM BANKS AND OTHERS. THE ASSESSING OFFICER FOUND THAT THE ABOVE ADVANCE WAS GIVEN OUT OF INTEREST BEARING FUND. WHEN ASKED TO EXPLAIN THE ASSESSEE COULD NOT SUBSTANTIATE ITS CLAIM. THE ASSESSING OFFICE R HELD THAT THE ASSESSEE HAS NOT BEEN ABLE TO OFFER SATISFACTORY REPLY ON THE ISSUE. THE ASSESSING OFFICE R THEREFORE OBSERVING THAT FOR UTILISING INTEREST BEAR ING FUNDS FOR NON BUSINESS PURPOSES A PROPORTIONATE AMOUNT OF RS.2 95 050/- @ 15% ON THE TOTAL FUND LET OUT TO THE BORROWER AT RS.19 67 000/- IS REQUIRED TO BE M/S COIGN BUILDERS ITA NO. 460/IND/2016 4 DISALLOWED. ACCORDINGLY THE ASSESSING OFFICER MADE ADDITION OF RS.2 95 050/- TO THE TOTAL INCOME OF THE ASSESSEE U/S 36(1)(III) OF THE ACT. ON APPEAL LEARNED CIT(A) UPHELD THE ACTION OF THE ASSESSING OFFICER. N OW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD BOTH THE SIDES. BEFORE US THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AUTHORITIES BELOW WERE NOT JUSTIFIED IN DISALLOWING T HE CLAIM OF THE ASSESSEE. THE LEARNED COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT IF AN OPPORTUNITY IS GIVEN THE ASSESSEE IS READY AND WILLING TO FURNISH AL L THE REQUISITE DETAILS REQUIRED BY THE ASSESSING OFFICE R. WE THEREFORE IN THE INTEREST OF JUSTICE AND FAIR PL AY SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFI CER TO PROVIDE AN OPPORTUNITY TO THE ASSESSEE TO PROVE ITS CASE AND THEN TO MAKE THE ASSESSMENT AFRESH IN M/S COIGN BUILDERS ITA NO. 460/IND/2016 5 ACCORDANCE WITH LAW AFTER AFFORDING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 28 SEPTEMBER 2016. SD/- SD/- ( ..!') (..) #$ ( (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER '- / DATED : 28 SEPTEMBER 2016. DN/ M/S COIGN BUILDERS ITA NO. 460/IND/2016 6