Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “D”
Before: HON’BLE SH. SANDEEP GOSAIN, JM & HON’BLE SH. G. MANJUNATHA, AM
DCIT- 3(2)(1), Meta Tiles Pvt. Ltd. 6th floor, Aayakar 25, Nariman Bhavan Premises बिधम/ Bhavan, CHS Ltd. 227, Backbay Vs. Mumbai-400 020 Reclamation, Nariman Point, Mumbai 400 021 स्थायीलेखासं./जीआइआरसं./ PAN No. AAACT3954F (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant by : Shri N. R. Rao, AR प्रत्यथीकीओरसे/Respondentby : Shri D. G. Pansari, DR सुनवाईकीतारीख/ : 30.04.2019 Date of Hearing घोषणाकीतारीख / : 16.05.2019 Date of Pronouncement आदेश / O R D E R
Per Sandeep Gosain, Judicial Member:
The present Appeal filed by the assessee is challenging against the order of Ld. CIT (Appeal) – 8, Mumbai dated 25.02.19 for AY 2015-16. Meta Tiles Pvt. Ltd.
The brief facts of the case are that the assessee company is engaged in the business of tiles and chemicals. The return of income for the year under consideration was filed declaring total income at Rs.51,10,240/- as per normal provisions of I.T. Act and Rs. 50,26,301/- as book profit u/s 115JB of I.T. Act. Subsequently, the case was selected for scrutiny and after serving statutory notices and seeking reply of the assessee, assessment order was passed by AO u/s 143(3) of the Act, thereby making addition as Unexplained Cash Credit on account of share premium/share application money/share capital.
Aggrieved by the order of AO, assessee preferred appeal before Ld. CIT(A) and Ld. CIT(A) after considering the case of both the parties, dismissed the appeal of the assessee.
Now before us, the assessee has preferred the present appeal by raising the above grounds.
The solitary ground raised by the assessee relates to challenging the order of Ld. CIT(A) in upholding addition made by AO as cash credit and as assessable u/s 68 of the I.T. Act.
Meta Tiles Pvt. Ltd.
Ld AR appearing on behalf of the assessee reiterated the same arguments as were raised by him before Ld. CIT(A). It was submitted that assessee had filed written submissions before Ld. CIT(A) which may also be read as arguments on behalf of assessee before us and the same are contained in para no. 3.1.2 of the order of Ld. CIT(A). It was further submitted that assessee is in the business of trading tiles, chemicals etc. The Return of Income was filed at Rs. 51,10,240 and during the course of assessment, assessee had filed (i) a complete set of Return of Income e-filed earlier along with a copy of Computation of total income, (ii) Audited accounts for the Financial year 2014- 15, (iii).Tax Audit report; (iv) Confirmation of accounts of loans and advances from the three related companies in the group M/s Metaoxide Private Ltd., M/s Anandeya Investments Private Ltd. and M/s Sankeya Chemicals Private Ltd. and (v) Audited accounts of Metaoxide Private Ltd. In this respect, all the documents have been enclosed in the paper book.
4.1 The assessee had also filed details of running account of three related parties, the details of which are as under:
Meta Tiles Pvt. Ltd. Sr. No. Name of the party Opening balance Closing balance i Metaoxide Private Nil Rs. 1,42,78,442 Limited 2 Shree Anendeya Rs. 4,50,000 Nil Investment Private Ltd. 3 Sankeya Chemicals Rs. 15,18,265 Nil Private Limited 4.2 It was submitted that all the three accounts are running accounts and during the year under consideration, there are several transactions of receipt of amount as well as repayments. In this respect, copies of account of three parties have already been enclosed.
4.3 It was submitted that all the three parties from whom loans were taken are corporate entities and therefore are registered with the