INFINITE EXPEDITIONS PVT. LTD.,MODINAGAR, GHAZIABAD, UTTAR PRADESH vs. INCOME TAX OFFICER, WARD 2(1)(1), GHAZIABAD, GHAZIABAD

Brief facts of the case are that assessee company filed its return of income for assessment year (A.Y.) 2018-19 on 21.09.2018 declaring income of Rs.1,19,492/-. Initially return was processed under section 143(1). Subsequently, case was reopened under section 147 on the basis of information with the Assessing Officer under risk management strategy of Central Board of Direct Taxes (CBDT). The assessing Officer has information that assessee has unexplained credit of Rs.21,39,938/- in its bank account. The Assessing Officer noted that under section 148A (b) was issued to the assessee. The assessee neither attended nor filed any reply accordingly, order under section 148A (d) was passed on 30.03.2022. Consequent, upon notice under section 148 dated 30.03.2022 was also issued. The Assessing Officer recorded that in response to notice under section 148 dated 30.03.2022, the filed its return of income on 24.11.2022 declaring income of Rs.1,19,492/-. The Assessing Officer further recorded that assessee furnished certain information in response to various notices. On the basis of such information the Assessing Officer recorded that assessee engaged in the business of tour operator and allied services. The assessee has shown commission income from such activities. The Assessing Officer further recorded that during the relevant financial year, the assessee was held unexplained credit of Rs.21,39,938/- and on show cause notice, the assessee furnished his reply and submitted that there is no unexplained credit in its bank accounts. Reply of assessee was not Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) found satisfactory by Assessing Officer. The Assessing Officer issued fresh show cause notice dated 15.02.2023. In fresh show cause notice, the Assessing Officer asked for copy of bank book, cash book and the document evidence in support of credit entries in the bank account and as to why such credit be not added to the total income. The Assessing Officer recorded that the assessee in his reply again repeated similar contention that they have already furnish the required details. The Assessing Officer recorded that no credible information is provided about source of credit of Rs.21,39,398/- and treated such credit as unexplained credit and taxed the same under section 115BBE in the assessment order dated 28.02.2023.

Aggrieved by the additions in the assessment order, the assessee filed appeal before CIT(A). The assessee raised ground of appeal that reasonable opportunity of hearing was not given. The assessee also challenged the additions on merit. The assessee, on service of notice under section 250 filed their detailed written submissions. The submission of assessee are recorded at Page No.3 to 19 of order of CIT(A). In the written submissions, the assessee stated that the assessee’s company is in the business of tour operator and allied activities. The assessee is maintaining proper books of account which are subject to audit. The assessee filing return of income regularly with the audited balance sheet and tax audit report. Notice under section 148A was received on 31.03.2022. The assessee could not filed any response to such notices thereafter, order under section 148A (d) dated 30.03.2022 was issued by Assessing Officer.

The assessee further stated that entire credit was disclosed in the books along with nature and source. About the observation of Assessing Officer bank book was not produced, the assessee referred the screenshot of ITBA portal, wherein complete details of YES Bank was furnished. The assessee submitted that nature and source of credit was duly explained and the Assessing Officer erred in making such addition under section 68.

The ld. CIT(A) after considering the submission of assessee noted that on perusal of assessment order it is seen that assessee has failed to give details of identity of their clients. The assessee has only given the name of Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) the clients without their address and identification proof. The assessee as in the business of tour and travel, it is not possible that basic detail of client like address and identity and proof were not taken while making their bookings. The ld. CIT(A) on such observation held that assessee failed to prove the identity of their client. Further, aggrieved the assessee has filed present appeal before Tribunal.

I have heard the submission of ld. Authorized Representative (ld. AR) of the assessee and the ld. Senior Departmental Representative (Sr. DR) for the revenue and have gone through the orders of lower authorities carefully. The ld. AR of the assessee submits that assessee is in the business of tour operator. The assessee during the relevant financial year was running its business from C-387 Swarna Jayanti Puram Ghaziabad. The assessee shifted its office from Ghaziabad to Modinagar. The address of assessee during the period when reassessment proceedings was initiated was shifted to Modinagar. The assessee in response to various show cause notice furnish reply. The Assessing Officer instead of considering such reply made additions on account of unexplained credit. Before CIT(A) the assessee furnished complete details. The ld. CIT(A) despite recording all such details confirm the action of Assessing Officer by holding that Assessing Officer has not filed details of identity of persons. The assessee has furnished complete details of the creditors along with nature and purpose of amount credit in his bank account. The assessee furnished complete details of all the persons, copy of KYC document of such persons Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) are placed on record at page no.252 to 271 of paper book. The assessee has completely discharge his onus. Once the assessee is discharged his primary onus, the onus shifts on the revenue authority to investigate the issue and to bring adverse material if any. Mere giving finding that assessee has not given complete details of its clients, is not correct. The ld. AR of the assessee submits that once assessee is discharge his onus, no addition is to be made against the assessee. The ld AR of the assessee submits that he was not served with notice under section 148. When notice under section 148 was allegedly issued the address of assessee was changed. The assessee is its return of income for subsequent assessment years duly informed about its new address.

On the other hand, the ld. DR for the revenue supported the order of lower authorities. The ld SR DR for the revenue submits that in absence of complete details of creditors, the ld CIT(A) confirmed the action of assessing officer.

In short rejoinder, the ld AR of the assessee submits that complete details of creditors were furnished by the assessee to the assessing officer as well as to ld CIT(A), both the lower authorities failed to appreciate the evidence. All such evidences, which were filed before lower authorities have been placed on record.

I have considered the rival submission of both the parties and have gone through the orders of lower authorities carefully. I find that Assessing Officer made addition under section 68 by taking view that the Assessee Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) has not furnished complete details in respect of credit of Rs. 21,39,938/-. I find that before ld. CIT(A), the assessee filed a very detailed written submission as recorded above. I also find that as per page 19 of order of CIT(A) the assessee furnish complete detail of his client along with the nature and purpose of such credit. The ld. CIT(A) instead of seeking any further clarification or reply from assessee, simply concluded that assessee has not furnished complete details. Before me the assessee has furnished proof of identity of various persons from whom the assessee has received such credit. The ld AR of the assessee has also certified that documents mentioned in serial no. 19 were furnished before AO/CIT(A). On careful perusal of all the details of nine persons, I find that assessee has furnished their name, address or copy of passport. Thus, complete details were provided to the ld CIT(A). Further, out of total credit of Rs. 21,39,938/-, Rs.1,50,000/- was received from assesses own account in ICICI Bank. I find that once the assessee has discharge primary onus in providing details and nature of credit, burden of proof shift on the revenue/revenue to prove it otherwise. I find that ld. CIT(A) instead of giving finding on facts of assessee case, relied on the case laws, facts of which are at variance. In my considered view, once the assessee has given complete details to substantiate the credit, onus shifts on the CIT(A) either to investigate of his own or to seek remand report of the Assessing Officer, which the ld. CIT(A) completely failed. Thus, in view of the aforesaid discussion, I do not find any justification in the order of CIT(A) in confirming the order above Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) under section 68. In the result, grounds of appeal raised by assessee are allowed.