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2019 (10) TMI 982 - ITAT PUNEAddition u/s 68 on account of unexplained cash credits - HELD THAT:- Regarding identity of AVPL: The AVPL address is 35B, Brajadulal Street, Joraban, Kolkata, West Bengal-700006. This company assessed to tax over the years with PAN No.AAGCA2061E. The same is assessed to tax in ITO, Ward-1(3), Kolkata. The copy of the written submissions are placed in the Paper Book of the Revenue at page 15 onwards. Therefore, Shri Nemichand Jain is the director of the company. S. Sadhu & Associates are the statutory auditors bearing the Membership No.061636. This company has the share capital of ₹ 32,96,000/- and it has reserves and ₹ 6,07,05,000/- as on 31.03.2010. It is a recorded transaction that Ashva Multi Trade Pvt. Ltd. received ₹ 6.55 crores as seen from the Schedule 3 of the Balance Sheet page 25 of the Paper Book. The said creditor AVPL is filing the returns with the active company in the records of Ministry of Commerce and is not struck for any default or reason. Considering the same, the above allegation that the identity of the creditor is unsustainable within the meaning of section 68 of the Act. Accordingly, the Revenue fails on this issue. Considering the huge reserves and surpluses available with the said AVPL, the creditworthiness of the AVPL also cannot be doubted. AO has not brought except stating that the company has meagre income as shown in the returns. The Assessing Officer has not brought any incriminating material to show that the creditor has not creditworthiness. As stated this company has 10 crores as reserves and surplus at the end of the March, 2010 at the relevant point of time. Regarding the genuineness of the transactions, we find that the Assessing Officer objection is that the AVPL being Kolkata Based company and its transaction with the assessee has to be suspected. In our view, such objection is unsustainable for the reason that the company with adequate reserves is assessed to tax regularly and the same is active company in the records of the Ministry of Commerce. No addition is made by the Assessing Officer for the amount of ₹ 2.5 crores in the assessment year 2009-10. Therefore, this kind of transaction with the creditor can be partly suspectable or partly unsuspectable and partly existing or partly not existing and partly genuine or partly non-genuine etc. Regarding the allegation of Kolkata based company, therefore fictitious company are accommodation entries provider etc. we find that the AVPL with so much of background as narrated above i.e. existence, identity, size reserves, punctual filing the document etc., the said company cannot be just accommodation entries provider. Shri Nemichand Jain is the director of the AVPL appeared before the authorities filing various documents clearly demonstrated the existence, genuineness, creditworthiness of the AVPL. As the huge amount of documentation was filed by the assessee. Per contra, the Assessing Officer did not gather any iota of direct evidence or indirect evidence to demonstrate that the AVPL is bogus concern or sham concern or accommodation entries provider. - Decided against revenue
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