ACIT 2(3), MUMBAI v. M/s. VATSA CORPORATION LTD., MUMBAI

ITSSA 425/MUM/2003 | misc
Pronouncement Date: 04-02-2010 | Result: Dismissed

Appeal Details

RSA Number 42519916 RSA 2003
Assessee PAN EYEAR1992O
Bench Mumbai
Appeal Number ITSSA 425/MUM/2003
Duration Of Justice 6 year(s) 8 month(s) 13 day(s)
Appellant ACIT 2(3), MUMBAI
Respondent M/s. VATSA CORPORATION LTD., MUMBAI
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 04-02-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 04-02-2010
Assessment Year misc
Appeal Filed On 22-05-2003
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B : MUMBAI BEFORE SHRI D. MANMOHAN HONBLE VICE PRESIDENT AND SHRI T.R.SOOD ACCOUNTANT MEMBER I.T.(SS)A. NO. 425/MUM/2003 BLOCK PERIOD 01-4-1985 TO 11-12-1995 ACIT 2 (3) R.NO. 555 AAYAKAR BHAVAN MUMBAI. VS. M/S. VATSA CORPN. LTD. VATSA HOUSE FORT MUMBAI 001 PAN AAACV-8391-E (APPELLANT) (RESPONDENT) FOR APPELLANT : S/SHRI S.S. RANA ANDS.K. SINGH FOR RESPONDENT : -NONE- ORDER PER SHRI D. MANMOHAN V.P. 1. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 10-03-2003 OF THE CIT(A)-XXXIII MUMBAI. FOLL OWING GROUNDS WERE URGED BY THE REVENUE. 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.254.40 CRORES MADE U/S. 68 OF THE IT ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.16.83 LAKHS BEING THE INTEREST INCOM E OUT OF BOOKS ON THE ADVANCES GIVEN. 2. THE CASE WAS POSTED FROM TIME TO TIME BUT NONE APPEARED ON BEHALF OF THE ASSESSEE. THE CASE WAS ADJOURNED AT THE REQUEST OF THE LEARNED D.R. ON NUMBER OF OCCASIONS IN VIEW OF THE FACT THAT ADDITION 2 MADE ON SUBSTANTIVE BASIS IN THE CASE OF M/S. ROLEX HOLDINGS LTD. WAS PENDING BEFORE THE ITAT F BENCH MUMBAI. EVEN T ODAY NONE APPEARED ON BEHALF OF THE ASSESSEE BUT WRITTEN SUBMISSIONS W ERE FILED ON BEHALF OF THE ASSESSEE-COMPANY. LEARNED D.R. HAS BROUGHT TO O UR NOTICE THAT THE APPEALS CAN BE DISPOSED OF IN THE LIGHT OF THE ORDE R PASSED BY THE ITAT IN THE CASE OF M/S. ROLEX HOLDINGS LTD. (ITA. NOS. 209 2 & 2093/M/2003 DT. 17 TH NOVEMBER 2006). UNDER THESE CIRCUMSTANCES WE PRO CEED TO DISPOSE OF THE APPEAL EX-PARTE QUA THE ASSESSEE. 3. THE CASE OF THE ASSESSEE WAS THAT THE ASSESSING OFFICER PASSED AN ORDER WITHOUT APPLICATION OF MIND WITHOU T GOING THROUGH THE VITAL AND ESSENTIAL DOCUMENTS. THERE ARE ALSO MANY ALLEGATIONS / SUBMISSIONS WITH REGARD TO ECONOMIC OFFENCES WING O F CRIME BRANCH CID AS WELL AS OFFICERS CONNECTED TO THE SEARCH AND SEI ZURE WING OF THE INCOME TAX DEPARTMENT. 4. THE LEARNED D.R. SUBMITTED THAT SO FAR AS THE A DDITION MADE UNDER SECTION 68 OF THE ACT IS CONCERNED (GROUND NO .1) CREDITS APPEARING IN THE BOOKS OF ACCOUNTS OF M/S. ROLEX HOLDINGS (SU PRA) WAS FOUND TO BE UNEXPLAINED AND THE SAME WERE ADDED ON THE PROTECTI VE BASIS IN THE HANDS OF THE ASSESSEE UNDER SECTION 68 OF THE ACT THOUGH SUBSTANTIAL ASSESSMENT WAS MADE IN THE HANDS OF ROLEX HOLDINGS LIMITED. IT WAS ALSO STATED THAT THE ITAT UPHELD THE ADDITION MADE IN TH E HANDS OF ROLEX HOLDINGS (SUPRA) AND THUS THE ADDITION OF THE SAME AMOUNT IN THE HANDS OF THE ASSESSEE MAY NOT BE PERMISSIBLE. HAVING REGA RD TO THE SUBMISSION OF THE LEARNED D.R. AND IN THE LIGHT OF DECISION OF THE ITAT WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT(A). I T MAY BE NOTICED THAT EVEN THE LEARNED CIT(A) SET ASIDE THE ADDITION MAIN LY ON THE GROUND THAT SAME AMOUNT WAS ALREADY INCLUDED IN THE HANDS OF RO LEX HOLDINGS (SUPRA) ON SUBSTANTIVE BASIS. WE THEREFORE UPHOLD THE ORDER OF THE LEARNED CIT(A) AND REJECT GROUND NO.1 OF THE REVENU E. 3 5. BEFORE PARTING WE MAY OBSERVE THAT THE ITAT F BENCH MUMBAI HAS DISMISSED THE APPEAL FILED BY M/S. ROLEX HOLDINGS LTD. FOR NON-PROSECUTION AND NOT ON MERITS. HENCE IN THE EV ENT OF AN APPLICATION FILED BY M/S. ROLEX HOLDINGS FOR RECALL OF THE SAID ORDER AND IF SUCH APPLICATION IS ACCEPTED AN INDEPENDENT DECISION MA Y NEED TO BE ARRIVED AT IF SUBSTANTIAL ADDITION MADE IN THE HANDS OF M/S . ROLEX HOLDINGS IS DELETED. THE REVENUE IS AT LIBERTY TO MOVE AN APPRO PRIATE APPLICATION FOR RECALL OF OUR ORDER ON GROUND NO.1 IF SUCH CONTING ENCY ARISES. 6. FACTS CONCERNING GROUND NO.2 ARE AS FOLLOWS. TH E ASSESSEE ADVANCED A SUM OF RS. 17.50 LAKHS TO M/S. MRUGDEEP FABRICS PVT. LTD. IN THE YEAR 1992 OUT OF WHICH SOME AMOUNT WAS RETURNED AND THE BALANCE REMAINED OUTSTANDING. THE CASE OF ASSESSEE-COMPANY WAS THAT THE AMOUNT WAS ADVANCED AGAINST BUSINESS DEALINGS AND T HEREFORE NO INTEREST WAS CHARGED ON SUCH ADVANCES. HOWEVER THE ASSESSING OFFICER SOUGHT TO BRING TO TAX NOTIONAL INTEREST @ 33% P.A. 7. ON AN APPEAL FILED BY THE ASSESSEE LEARNED CIT (A) SET ASIDE THE ADDITION ON THE GROUND THAT IT WAS MERELY BASED ON SURMISES. AGGRIEVED REVENUE IS IN APPEAL BEFORE US. NO MATER IAL WHATSOEVER WAS FURNISHED BY THE LEARNED DR TO CONTRADICT THE FINDI NGS OF THE LEARNED CIT(A). UNDER THESE CIRCUMSTANCES WE DO NOT FIND A NY INFIRMITY IN THE ORDER OF THE LEARNED CIT(A) AND HENCE GROUND NO. 2 IS HEREBY REJECTED. 8. GROUND NO.3 IS GENERAL IN NATURE AND THEREFORE DO NOT REQUIRE INDEPENDENT CONSIDERATION. 9. IN THE RESULT APPEAL FILED BY THE REVENUE IS D ISMISSED. 4 I.T.(SS)A. NO. 425/MUM/2003 ORDER PRONOUNCED IN THE OPEN COURT ON THIS THE 0 4 TH DAY OF FEBRUARY 2010. SD/- SD/- (TR SOOD) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI DATE 04 TH FEBRUARY 2010. VBP/- COPY TO 1. ACIT 2 (3) R.NO. 555 AAYAKAR BHAVAN MUMBAI. 2. M/S. VATSA CORPN. LTD. VATSA HOUSE FORT MUMBAI 001 PAN AAACV-8391-E 4. CIT(A) - XX XI II MUMBAI . 5 CIT CITY-II MUMBAI 6. D.R. B BENCH MUMBAI. 7. GUARD FILE. (TRUE COPY) BY ORDER ASST. REGISTRAR ITAT MUMBAI BENCHES MUMBAI.