M/S. EDEN HEALTHCARE PVT. LTD.,,AHMEDABAD vs. THE ITO, WARD-2(1)(1),, AHMEDABAD

आयकर अपील�य अ�धकरण, अहमदाबाद �यायपीठ ‘SMC’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI WASSEM AHMED, ACCOUNTANT MEMBER आयकर अपील सं./ (�नधा�रण वष� / Assessment Year: 2009-10) M/s. Eden Healthcare Pvt. ITO-2(1)(1), बनाम/ Room No- A/407, 4th Floor, Ltd. Vs. 301, Abhishree Complex, Pratyakshkar Bhawan, Opp. OM Tower, Satellite Ahmedabad Road, Satellite Ahmedabad- 380015 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAB CE4 032 E .. (अपीलाथ� /Appellant) (��यथ� / Respondent) अपीलाथ� ओर से /Appellant by : Shri Tej Shah, AR Shri Rajdeep Singh, Sr. DR ��यथ� क� ओर से / Respondent by : सुनवाई क� तार�ख / Date of 25/10/2019 Hearing घोषणा क� तार�ख /Date of 18/11/2019 Pronouncement आदेश/O R D E R PER MAHAVIR PRASAD - JM:

This appeal has been preferred by the assessee against the order of Ld. CIT(A)-2/455/ITO, Wd. 2(1)(1)/2016-17 dated 05.09.2017 arising out of assessment order dated 28.11.2016 and assessee has taken following grounds:

“1. The Hon’ble CIT(A) has erred in upholding the addition made by learned A.O. and has added Rs. 4,00,000/- to the income of assessee on account of share application money received during the year under consideration even though primary information & evidence i.e. PAN, ITR, Balance Sheet & Bank Statements were provided for verification. The ITO/CIT(A) neither rejected nor [M/s. Eden Healthcare Pvt. Ltd. vs. ITO] A.Y. 2009-10 - 2 - investigated the documents. The addition is made merely on the basis of third party information.

2. The learned assessing officer has erred law. On the facts and circumstances of the case and in the law, the ITO/CIT(A) has erred in assessing the income of the appellant at Rs. 12,67,910/-, instead of Rs. 8,67,907/- returned. As such aggregate additions of Rs. 4,00,000/- may please be deleted.

4. Even after submission of primary evidence & information for source of fund, identity, genuineness, & credit worthiness of payer by the assessee, the learned ITO/CIT(A) relied on third party statement which is not available on record. The addition made by L’d ITO/CIT(A) stands bad in law and is required to be deleted.

Date Cheque Bank Paty’s Debit Name of No. Name Name entry giving company 01/01/2019 171422 DCB Eden Health 4,00,000/- S. J. Bank Care Securities

As the assessee was a beneficiary recipient of funds by way of accommodation entry and hence the credits appearing in assessee [M/s. Eden Healthcare Pvt. Ltd. vs. ITO] A.Y. 2009-10 - 3 - company’s bank accounts from bogus concern of Shri Pratik Shah were required to be treated as unexplained cash credits. In view of the above facts, the reasons were recorded and notice u/s. 148 of the Act dated 07/09/2015 was issued and served to the assessee company.

In response to the above notice, the assessee vide its letter dated 13/01/2016 submitted to this office on 18/01/2016 filed its submission along with the copy return of income filed voluntarily u/s. 139(1) of the Act dated 12/09/2009 and requested to treat the same as return of income against the above notice. Due change of incumbent in the office a letter dated 25/07/2016 was issued to the assessee. Further the assessee vide this office letter dated 13/10/2016 was provided with the reasons recorded for reopening and the assessee was requested to file its objection, if any, against the reopening of the assessment. The assessee did not file the objection against the reasons recorded. Notice u/s. 143(2) of the Act was issued on 01.11.2016 and a show cause letter dated 01.11.2016 was issued to the assessee requesting it to show cause as to why the impugned addition as per the reasons recorded with regard to the accommodation entries amounting to Rs. 4,00,000/- received from M/s. S. J. Securities Ltd. should not be added to the total income of the assessee company.

In response to the above, neither the assessee nor its authorized representative attended and not filed any reply. In spite of several opportunities offered to the assessee, the assessee failed to furnish any reply in response to the above show cause notice. As the assessee failed to furnish any reply, the loan of Rs. 4,00,000/- by way of accommodation entry received from M/s. S. J. Securities Ltd. is treated as unexplained cash credit u/s. 68 of the Act and the same is added to the total income of the assessee company against the order of Ld. AO assessee preferred appeal before the Ld. CIT(A) who confirmed the action of the AO.

[M/s. Eden Healthcare Pvt. Ltd. vs. ITO] A.Y. 2009-10 - 4 -

3. We have gone through the relevant record the impugned order in this case lower authorities made and confirmed addition of Rs. 4,00,000/- on account of so-called loan by way of accommodation entries received from M/s. S. J. Securities Ltd. The assessee could not appear before the Ld. AO and stated notice was not received by him but before the Ld. CIT(A) assessee submitted all the relevant details pertaining to cash credit of Rs. 4,00,000/- which were not examined by the Ld. CIT(A) for the reason best known him. But in the interest of justice we set-aside this matter to the file of the AO to decide the matter after considering all the details which have been filed before the Ld. CIT(A) or to be filed by the assessee, thereafter, Ld. AO will decide matter in accordance with law. We also direct the assessee not to seek unnecessarily adjournment in this case.

This Order pronounced in Open Court on 18/11/2019

Sd/- Sd/- (WASEEM AHMED) (MAHAVIR PRASAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 18/11/2019 TANMAY TRUE COPY आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।