TMI Blog2022 (10) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... of hearing to the assessee. Appeal of the assessee is allowed for statistical purposes. - ITA Nos. 224, 225, 226, 227 & 228/Ahd/2018 - - - Dated:- 28-9-2022 - Ms. Annapurna Gupta, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member For the Assessee : Ms. Urvashi Shodhan, A.R. For the Revenue : Shri Rakesh Jha, Sr. D.R. ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER :- These five appeals have been filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-2 CAB/(A)-2/220/15-16, Vadodara in Appeal nos. CAB/(A)-2/220/15-16, CAB/(A)-2/221/15-16, CAB/(A)-2/219/15-16, CAB/(A)-2/218/15-16 CAB/Vadodara- 2/10723/15-16 vide order dated 29/11/2016 31.10.2017 passed for the Assessment Years 2008-09 to 2011-12 2014-15. 2. Since common issues are involved for all the years under consideration, the same are being disposed of by way of a common order. 3. The assessee has taken the following grounds of appeal for assessment year 2008-09. Since the grounds of appeal for all the years under consideration are principally common, the same are not being repeated for sake of brevity. 4. Revised grounds of appeal f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee company to another bank account without the knowledge of the directors of the assessee company. As a result of the above dispute, complaint has been filed by the present directors with the Ministry of Corporate Affairs (MCA) as well as National Company Law Tribunal (NCLT). However, despite substantial lapse of time, the dispute could not be settled amicably (in fact the dispute is still persisting) and hence the existing directors of the assessee company, M/s Mansha Textile Private Limited, decided to complete the pending legal matters, which led to delay in filing of appeal before the ITAT (360 days for assessment years 2008-09 to 2011-12 and 15 days delay for assessment year 2014-15). The assessee submitted before us several documents in support of the ongoing dispute between the present directors of the company and ex-directors viz. intimation letter to Mr Deepak Ochhaney (ex-director of assessee company) for removal from directorship as per resolution passed in the EGM on 20-03-2006, public notice stating removal of directors published in the newspaper, application made under Regulation 44 of the Company Law Board Regulations etc. Before us, the counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case are that on verification of details in form 26AS, the AO observed that the assessee had received an amount of Rs. 21,42,504/- as rental income for the year under consideration, however, the same was not offered to tax by the assessee company in the return of income. Accordingly, the AO reopened the assessment under section 147 of the Act. In the course of re-assessment proceedings, the AO observed that various parties had made rental payment to the assessee company, which has been found credited in the current account of the assessee company held with Axis Bank Ltd, however assessee has not shown this bank account in its books of account for the year under consideration and neither the rental receipts were offered to tax by the assessee in the return of income. In the submissions before the AO, the assessee submitted that the assessee company was formed in the year 1988 to carry on the business of textile products and was having its registered office at Vadodara, Gujarat. Original Directors of the company were Mr Ashok Khurana and Mrs Manju Khurana. Later one Mr Deepak Ochhaney approached Mr Khurana with the proposal for development of commercial property at Noida on 50-5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er allowing standard deduction@30%) for the year under consideration. While passing the order, the AO made the following observations: It is clear from the above that the assessee company was always in knowledge of the fact of the rent being received because, i) The assessee was aware that it had some properties. ii) It beats all logic that a company never bothered to find out that what is happening in these prime properties and which tenants are residing in them. iii) It does not seems logical that the assessee company has never tried to find out that in which bank account the credits are being reflected in it's 26AS Details accordingly TDS certificates are being issued. iv) It also does not seems logical that the assessee company has never approached in the bank, if here was any fraudulent bank account has opened in it. 7. Despite of above reality and facts of the case, the AR of the assessee vide his letter dated 03.09.2015, intentionally denied to offer undisclosed rent income of Rs. 21,42,504/- for tax though it is fact that the assessee company has not disclosed same in it's return of income and shown nil rent income for the year under consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the business of company is a/ways carried out by the directors or any other authorized person. Accordingly, the rental income arising from the properties of the company located at Noida was being deposited in a bank account with Axis Bank Ltd. It is highly unbelievable that the appellant company was not aware about the rental income and its withdrawal from the bank account even though the same was being done from F.Y. 2006 07 and the appellant was continuously having information about tax deducted from the rental income. It is also noticed that no FIR has been filed against the directors of Ochaney group. Therefore, it is dearly established that the rental income has to be assessed in the hands of appellant company only. Even if the income was withdrawn by the ex-directors, it amounts to application of the income only and hence the appellant company cannot be a/lowed any benefit on this account. In view of these facts and circumstances of the case, thus I hold that AO has rightly assessed the rental income arising from the properties belonging to the appellant company, in the hands of appellant. Accordingly, the addition made on this account at Rs. 40,30,495/- after allowing ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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