M/S URVASHI WORLD WIDE P LTD, INDORE,INDORE vs. ITO,WARD 4(5), INDORE, INDORE

Urvashi World Wide Private Limited ITA No.411/Ind/2018 आयकर अपील�य अ�धकरण, इंदौर �यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER

ITA No.411/Ind/2018 Assessment Year: 2012-13 M/s. Urvashi World Wide Income Tax Officer Pvt.Ltd, Vs. Ward 4(5), 305, D/S-3 Scheme No.78, Indore Indore (Appellant) (Respondent ) PAN No.AAACU2067J

Revenue by Shri Lal Chand, CIT Assessee by Shri P.D. Nagar,CA Date of Hearing 12.09.2018 Date of Pronouncement 19.9.2018

O R D E R PER MANISH BORAD, AM.

The appeal filed by the assessee pertaining to A.Y. 2012-13 is directed against the order of Ld. Commissioner of Income Tax(Appeals)-II, Indore, (in short ‘CIT(A)’), vide appeal No. IT- 178/15-16/361 order dated 02.03.2017 which is arising out of the order u/s 143(3) of the Income Tax Act 1961(hereinafter called as the ‘Act’) framed on 30.03.2015 by ITO-4(5), Indore.

Urvashi World Wide Private Limited ITA No.411/Ind/2018 2. Assessee has raised following grounds of appeal;

“1.That the learned Commissioner of Income tax (A) erred in law in

not affording reasonable opportunity of being heard while

dismissing the appeal due to non-attendance by the appellant or its

counsel. He did not appreciate that proper notices were not served

on the appellant because the registered office of the company was

shifted to Mumbai since 26/07/2016 and there was no responsible

person at Indore. The appellant had in fact requested to transfer

the appellate proceedings to CIT (A), Mumbai for proper

adjudication vide letter dated 21.02.2017. Such bonafide and

honest belief that the proceedings will continue at Mumbai only,

resulted into non-attendance by the appellant. Under the

circumstances dismissal of appeal in default is unjustified,

improper, bad in law and deserves to be quashed.

2)That the learned Commissioner of Income tax (A) erred in law in

not considering the merits of the case in its true perspective. He

ought to have at least called the case records, of the appellant

before deciding the case on merits because all relevant documents

in support of credits lying in the books were submitted along with

proper evidences. Under the circumstances dismissal of appeal in 2

Urvashi World Wide Private Limited ITA No.411/Ind/2018 default even on merits without appreciating is unjustified,

improper, bad in law and deserves to be quashed.

Without prejudice to above, the learned Commissioner of Income

tax (A) erred in law in confirming the addition u/s 68 of the Act

amounting to Rs.18, 92, 50,000/- lying to the credit of six companies

who are associate concerns only. The AO did not appreciate the fact

that a sum of RS.7.25 crores was accepted as loan in earlier year

and it continued during the year. Not only identity, capacity, credit

worthiness as well genuineness of loans taken was proved beyond

doubt but even source of the source was proved because none of

the loans were accepted from outsiders. Therefore, addition made at

Rs. 18, 92, 50,000/- by the AO and confirmed by the CIT (A) is

unjustified, improper, bad in law and deserves to be quashed.

4) That the learned Commissioner of Income tax (A) erred in law in

confirming the addition u/s 68 of the Act amounting to Rs.

4O,OO,OOO/- being the amount of loan given to M/s .Swastik

Worldwide Pvt Ltd ignoring the fact that the amount was not

received by the appellant and it was not in the form of cash credit.

It being a asset addition made by AO u/s 68 of the Act and

confirmation thereof is wholly unjustified, improper and bad in law. 3

Urvashi World Wide Private Limited ITA No.411/Ind/2018 5)That the learned Commissioner of Income tax (A) erred in law in

confirming the addition u/s 68 of the Act amounting to Rs.50 lacs

being the amounts received towards share capital and premium

thereon in earlier years from M/s. Clifton Securities Pvt Ltd, Mis Zenser Merchandise Pvt Ltd & M/s Bhuwania Vinimay Pvt Ltd. He

did 110t appreciate that such amount by way of share application

money was received in earlier years whereas shares were issued

during the year.

The identity, capacity and genuineness of the transactions was also

proved by documentary evidences yet addition made during the

year ignoring the fact that the amounts were received in earlier

years is wholly unjustified, improper, bad in law and deserves to be

quashed.

The learned Commissioner of Income tax (A) further erred in law in

confirming the addition of Rs.l1 ,50,000/-- u/s 2(22)(e) of the Act

ignoring the fact that the appellant had advanced an amount of

Rs.ll,50,000/- to M/s. Shrashti Homes Pvt Ltd who does not hold any

shares of the appellant company. Just because M/s. Param

Holdings Pvt Ltd, and M/s. Param Trust Pvt Ltd, two shareholders of

appellant company hold more than 10 shares of M/s. Shrashti 4

Urvashi World Wide Private Limited ITA No.411/Ind/2018 Homes Pvt Ltd, hence money advanced to M/s. Shrashti Homes Pvt

Ltd at Rs.ll.5O lacs cannot be assessed to tax in the hands of the

appellant company under section 2(22) (e) of the Act.. By no stretch

of imagination the money advanced by the appellant company to

other private limited company can be assessed to tax in its hand

because it was not received from any other company by the

appellant hence addition so made and confirmed by CIT(A) is wholly

unjustified and deserves to be quashed”.

assessee did not appeared before Ld.CIT(A) even after being

provided various opportunities of being heard. As a result of which

Ld.CIT(A) has passed an ex-parte order dismissing assessee’s

appeal. Ld. Departmental representative prayed that all the issues

raised in this file needs to be set aside to the file of Ld.CIT(A) for

fresh adjudication.

if all the issues raised in this appeal are set aside to the file of

Ld.CIT(A).

Urvashi World Wide Private Limited ITA No.411/Ind/2018 5. We have heard rival contention and perused the record placed

before us.

assessee is a private limited company engaged in the trading of agri

based commodities. Return of income declaring total income of

Rs.1,83,160/- in the e-mail return dated 29.09.2012. Case

selected for scrutiny through CASS and notice u/s 143(2) /142(1) of

the Act were issued. Representative on behalf of the assessee

attended and filed necessary details. Assessment was completed on

30.03.2015 after making various additions at Rs.20,06,58,609/-.

Against various additions made by Ld.A.O appeal was filed before

Ld.CIT(A). Opportunity was provided at four occasions on

22.12.2016, 12.02.2017, 31.01.2017 and 02.03.2017 and neither

the assessee nor its representative appeared before Ld.CIT(A) nor

any written submissions were made. Due to this reason Ld.CIT(A)

passed ex-parte order dismissing the assessee’s appeal.

parties are have requested to go before Ld.CIT(A) once again for

adjudication of the issues on merits. We accept the request of

setting aside all the issues to the file of Ld. CIT(A) and direct the 6

Urvashi World Wide Private Limited ITA No.411/Ind/2018 assessee to be compliant to the notice of hearing received from

Ld.CIT(A) this time and should not take any adjournment unless

otherwise required for and should also furnish all necessary

documents and details for the adjudication of various issues raised

in this appeal. Accordingly all the issues raised in this file are set

aside to the file of Ld.CIT(A). Needless to mention that proper

opportunity of being heard to be provided to the assessee.

statistical purposes.

The order pronounced in the open Court on 19.9.2018.

Sd/- Sd/-

( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER �दनांक /Dated : 19th September, 2018 /Dev

Copy to: The Appellant/Respondent/CIT concerned/CIT(A) concerned/ DR, ITAT, Indore/Guard file. By order Private Secretary/DDO, Indore