MOTOREX FINANCE PVT LTD ,KOLKATA vs. ITO, WARD-4(1), KOLKATA

Shri Devesh Poddar, ld A.R. is represented on behalf of the assessee and Smt. Rinku Singh, ld. CIT-DR is represented on behalf of the revenue. A perusal of record shows that there was a delay of 35 days in filing this appeal before this Tribunal. The ld. AR of the assessee submitted that the ld. CIT(A) had passed impugned order on 22/11/2021 and this appeal was filed before this Tribunal on 25/02/2022. At the time of hearing, the ld. AR of the assessee fairly accepted that no condonation petition was filed by the assessee. It was a submission that the delay was caused due to situation beyond the control of assessee. There was no deliberate or intentional delay in filing this appeal. The ld. AR prayed Motorex Finance Pvt. Ltd. Vs ITO that the delay is not inordinate and the same may be condoned and appeal may be admitted and decided on merit. The ld. CIT-DR has raised no serious objection and made a submission that the Bench may take appropriate view in accordance with law. On perusal of record which shows that the delay was not inordinate and intentional, therefore, we condone the delay and admit the appeal.

On merit, it was submitted by the ld. AR that the assessee is an NBFC. It was a submission that during the impugned assessment year, the assessee had sold shares to an extent of Rs. 9,35,85,560/-. The assessee had also received interest income to an extent of Rs. 4,46,49,586/-. It was a submission that in course of assessment, the Assessing Officer treated the amount received by the assessee from the sale of shares as bogus transactions and the interest income was added as an unexplained income of the assessee. The ld. AR drew our attention to page No. 14 of the paper book which is a copy of the balance sheet and the P&L account of the assessee. The ld. AR also drew our attention to page No.16 which was the details of the purchase of shares made by the assessee for the year 31/03/2015 and 31/03/2016. It was a submission that the assessee had purchased shares of more than Rs. 31.35 crores for the year ended 31/03/2015 and for the impugned assessment year, the assessee had purchased shares of Rs. 12.89 crores. The ld. AR further submitted that the revenue from operations was to an extent of Rs. 13,82,25,416/- and this consisted of only the income being the interest income and the sale receipts of the shares. It was a submission that the total revenue of the assessee excluding the other income representing interest on income tax refund and dividend have Motorex Finance Pvt. Ltd. Vs ITO been treated as unexplained income of the assessee. It was a submission that before the Assessing Officer, the assessee had provided the complete break up of all the receipts and for this he drew our attention to page No. 151 of the paper book which was the response on the e-portal. It was a submission that four responses had been filed and all the details in regard to sale of the shares as also interest income was shown. In reply to specific query as to whether TDS had been deducted on the interest income, the ld. AR submitted in the positive. It was a submission that the Assessing Officer has also granted the benefit of the TDS in the refund claim of the assessee. It was a submission that before the ld. CIT(A) also, the details were produced and on the ground that the assessee had not provided the details of the Directors and identities and creditworthiness of the persons who had purchased the shares that formed the addition of Rs. 9,35,75,560/- and on account of an allegation that the assessee was unable to prove that the said amount of Rs. 4,46,49,856/- was the interest income, the ld. CIT(A) had confirmed the addition. It was a prayer that the addition as made by the Assessing Officer and as confirmed by the ld. CIT(A) is liable to be deleted.