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1
M/s The Book Centre Ltd
ITA 4584/M/2012
Cross Objection 214/M/2014
आयकर अपीलीय अिधकरण “बी” यायपीठ मुब
ं ई म।
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH “B”, MUMBAI
ी िवजय पाल राव, याियक सद य एवं
ी एन. के . िबलै या, लेखा सद य के सम ।
BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER
AND SHRI N K BILLAIYA, ACCOUNTANT MEMBER
ITA No. : 4584/Mum/2012
(Assessment year: 2006-07)
Deputy Commissioner of
Income Tax –Cir 6(1),
Room No. 506, 5th Floor,
Aaykar Bhavan, M K Road,
Mumbai -400 020
Vs
अपीलाथ (Appellant)
Appellant by
Respondent by
:
:
M/s The Book Centre Ltd,
LIC Building, 1st Floor, Ranade
Rod, Dadar (West),
Mumbai -400 028
थयी लेखा सं.:PAN: AAACT 3729 L
यथ (Respondent)
Shri N Padmanaban
Shri Nishit Gandhi
या ेप Cross Objection No. 214/Mum/2014
Arising out of ITA No. : 4584/Mum/2012, AY 2006-07
M/s The Book Centre Ltd,
LIC Building, 1st Floor, Ranade
Rod, Dadar (West),
Mumbai -400 028
या ेपक Cross Objector
या ेपकAppellant Cross Objector by
Respondent by
Vs
Deputy Commissioner of
Income Tax –Cir 6(1),
Mumbai -400 020
:
थ (Respondent)
Shri Nishit Gandhi
:
Shri N Padmanaban
सुनवाई क तारीख /Date of Hearing
घोषणा क तारीख /Date of Pronouncement
: 24-03-2015
: 24-03-2015
आदेश
ORDER
ी एन. के . िबलै या, लेस:
PER N K BILLAIYA, AM:
These are appeals by the revenue and Cross Objection by the
assessee preferred against very same order of the CIT(A)-14,
Mumbai, dated 24.04.2012 pertaining to AY 2006-07.
2.
The sole grievance of the revenue is that the CIT(A) erred in
deleting the addition of Rs. 30 lakhs on account of donation to
Sunderdeep Education Society and Rs. 10 lakhs to Mogadevi
Minda Charitable Trust.
2
M/s The Book Centre Ltd
ITA 4584/M/2012
Cross Objection 214/M/2014
3.
Briefly stated the fact of the case are that the return filed on
27.11.2006 declaring total income at Rs. 11,87,697/- which was
processed and accepted u/s 143(1) of the Act on 24.03.2008.
Subsequently, the AO received an information from additional CIT
Range -2 Gaziabad stating that the assessee has paid donation of
Rs. 30 lakhs to Sunderdeep Education Society. It was further
found that the assessee has advanced an amount of Rs. 10 lakhs
to Moga Devi Minda Charitable Trust, both these amounts were
not found in P&L account, hence, the case of the assessee was
reopened u/s 147 of the Act for verification. The assessee was
asked to explain these transactions. It was explained by the
assessee that the donation of Rs. 30 lakhs paid to Sunderdeep
Education Society has been debited to Advance Account in the
balance sheet. Similarly, Rs. 10 lakhs have also been shown under
the head “loans and advances” in the balance sheet. The assessee
filed related details and the bank statements to substantiate its
claim. The AO observed that there appears to be no co-relations
with the bank statement of the assessee, HDFC letter of
confirmation and donation received. The AO formed a belief that
the assessee has advanced money to the tune of Rs. 40 lakhs from
unknown sources for which it has offered no explanation. Invoking
the provisions of section 69C of the Act the AO made the addition
of Rs. 40 lakhs.
4.
Aggrieved by this, the assessee carried the matter before the
CIT(A) and reiterated its claim once again filing the details in
respect of bank account and confirmation from the bank.
5.
After considering the facts and submissions and after duly
verifying the entries from the bank statements, the CIT(A) deleted
the addition of Rs. 40 lakhs. Aggrieved by this, the revenue is
before us.
6.
The DR strongly supported the findings of the AO, per
contra, the Counsel for the assessee reiterated what has been
3
M/s The Book Centre Ltd
ITA 4584/M/2012
Cross Objection 214/M/2014
submitted before the lower authorities. The Counsel also referred
to the relevant documents placed in the paper book.
7.
We have considered the rival submissions and accordingly
perused the orders of the authorities below. The entire dispute
revolves around whether the assessee has paid Rs. 40 lakhs i.e.
Rs. 30 lacs to Sunderdeep Education Society and Rs. 10 lakhs to
Moga Devi Minda Charitable Trust and whether these transactions
are duly reflected in the books of accounts of the assessee to avoid
rigors of the provisions of section 69C of the Act.
8.
A perusal of the bank statement with HDFC bank clearly
shows the entries of purchase of Demand Draft, the transactions
are also confirmed by HDFC Bank. Let us consider these facts in
the light of provisions of section 69C, which says that where in any
financial year the assessee has incurred any expenditure for which
he offers any explanation or the explanation offered by him is not
satisfactory such amount may be treated as income of the assessee.
9.
In the case in hand, it cannot be said that the assessee has
offered no explanation. All that we have to see is whether the
explanation of the assessee is satisfactory in the eyes of the law.
We find that the explanation of the assessee is supported by the
bank statement wherein the entries are reflected. We find that the
explanation of the assessee is also supported by the bank
confirmation letter. We also find the entries duly reflected in the
balance sheet of the assessee for the year under consideration.
Therefore, it cannot be said that the explanation of the assessee is
not satisfactory. In our considered opinion, the CIT(A) has rightly
deleted the additions, we therefore do not find any reason to
interfere with the order of the CIT(A).
10.
Appeal filed by the revenue stands dismissed.
11.
With its Cross Objection, the assessee has challenged the
validity of the assessment undertaken u/s 147 of the Act, although
4
M/s The Book Centre Ltd
ITA 4584/M/2012
Cross Objection 214/M/2014
the Cross Objection is late by 442 days, since we have deleted the
additions and dismissed revenue’s appeal, issues raised by the
assessee by its Cross Objections are only on academic interest.
12.
In the result, appeal by the revenue is dismissed and Cross
Objections of the assessee is treated as infructuous.
Order pronounced in the open court on 24th March, 2015.
Sd/-
Sd/-
(िवजय पाल राव)
याईक सद य
(एन. के . िबलै या)
लेखा सद य
(VIJAY PAL RAO)
JUDICIAL MEMBER
(N K BILLAIYA)
ACCOUNTANT MEMBER
Mumbai, Date: 24th March, 2015
त/Copy to:1) अपीलाथ /The Appellant.
2)
यथ /The Respondent.
3) The CIT(A) -14, Mumbai.
4) The CIT-6, Mumbai.
5) िवभागीय ितिनिध “बी”, आयकर अपीलीय अिधकरण, मुंबई/
The D.R. “B” Bench,
6) गाड फाईल
Copy to Guard File.
Mumbai.
आदे शानस
ु ार/By Order
/ / True Copy / /
उप/सहायक पंजीकार
आयकर अपील य अ धकरण, मब
ुं ई
Dy./Asstt. Registrar
I.T.A.T., Mumbai
*च हान व.िन.स
*Chavan, Sr.PS