Income Tax Appellate Tribunal - Ahmedabad
Rrj Dyes & Intermediates Ltd., ( Now ... vs The Acit, Circle-5,, Ahmedabad on 14 March, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "D" BENCH
(BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
& SHRI S. S. GODARA, JUDICIAL MEMBER)
ITA. No: 1106 & 1367/AHD/2015
(Assessment Year: 2010-11)
RRJ Dyes & Intermediates V/S The Asstt. Commissioner of
Ltd. (now known as prolife Income Tax, Circle-5,
Industries Ltd.) 203, Ahmedabad
Supath Complex, Nr. Vijay
Char Rasta, Navrangpura-
380009
The Asstt. Commissioner V/S RRJ Dyes & Intermediates
of Income Tax, Circle-5, Ltd. (now known as prolife
Ahmedabad Industries Ltd.) 203,
Supath Complex, Nr. Vijay
Char Rasta, Navrangpura-
380009
(Appellant) (Respondent)
PAN: AAACR 9172R
Appellant by : Shri G. C. Pipara, AR
Respondent by : Shri Alok Kumar, Sr. D.R.
(आदे श)/ORDER
Date of hearing : 13 -03-2018
Date of Pronouncement : 14-03-2018
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:
2 ITA No 1106 & 1367/Ahd/2015 . A.Y. 2010-11
1. ITA Nos. 1106 & 1367/Ahd/2015 are cross appeals by the Assessee and the Revenue preferred against the order of the Ld. CIT(A)-9, Ahmedabad dated 09.02.2015 pertaining to A.Y. 2010-11.
2. The assessee is aggrieved by the addition of Rs. 11,00,000/- and Rs. 10,00,000/- made u/s. 68 of the Act and the Revenue is aggrieved by the deletion of the addition of Rs. 15,00,000/- made u/s. 68 of the Act.
3. Appeal filed by the Revenue has to be dismissed in the light of CBDT Circular No. 21 of 2015 by which the Board has directed the revenue not to prefer appeal before the Tribunal where the tax effect is less than Rs. 10 lacs. In the light of the said Circular of the CBDT, appeal by the Revenue in ITA No. 1367/Ahd/2015 is dismissed.
4. Coming to the grievance of the assessee, the first issue relates to the addition of Rs. 11 lacs in the name of Jatin R. Rami treated as unexplained cash credit u/s. 68 of the Act.
5. This addition has been made by the A.O. because Shri Jatin Rami in his statement recorded u/s. 131 of the Act confessed that the entire amount of Rs. 11 lacs shown through the banking channel was entirely the money of the company and he merely signed where he was asked to. In his statement, Shri Jatin Rami also stated that he has no knowledge of such transaction with the assessee and has never received back the alleged loan.
3 ITA No 1106 & 1367/Ahd/2015
. A.Y. 2010-11
6. On the strength of the statement of Shri Jatin Rami, the A.O. treated Rs. 11 lacs as unexplained cash credit.
7. Facts on record do not support what Shri Jatin Rami stated before the A.O. Firstly, in the bank statement of Shri Jatin Rami with Axis Bani exhibited at page 4 of the paper book, there is a clear entry of payment of Rs. 11 lacs to M/s RRJ Dyes and Intermediates Pvt. Ltd. (the assessee company) on 26.03.2010. There are credit entries also amounting to Rs. 42 lacs with corresponding debit entries. It may be possible that Shri Jatin Rami wanted to avoid further litigation in his own case and showed his ignorance for the transaction with the assessee. Further on exhibit 5 of the paper book, there is a clear payment of Rs. 11 lacs on 13.08.2012 through cheque of J & K Bank. Entries of interest payment of Rs. 95,375/- is also found on exhibit 6 of the paper book. These evidences clearly demonstrate that Jatin Rami did gave loan to the assessee amounting to Rs. 11 lacs on which he earned interest and the said loan amount was repaid back to him . For the reasons best known to Shri Jatin Rami, he did not accept the transaction but facts on record speak otherwise. In our considered opinion, the assessee successfully discharged the initial onus cast upon him by provisions of Section 68 of the Act. Therefore, this addition of Rs. 11 lacs deserve to be deleted. Ground no. 1 is allowed.
8. Ground no. 2 relates to the addition of Rs. 10 lacs in the name of R K Traders. In this case, it is true that no one appeared in response to the summons issued u/s. 131 of the Act. The A.O. surmised that because Shri Jatin Rami confessed against the transaction. Therefore, the assessee cautioned R K Traders not to appear before the A.O. This transaction was done through banking channels and in the statement of account with DCB Bank exhibited at page 10 of the 4 ITA No 1106 & 1367/Ahd/2015 . A.Y. 2010-11 paper book, there is a clear entry on 25.03.2010 in respect to Rs. 10 lacs given to RRJ Dyes and Intermediates Pvt. Ltd. (the assessee company). On this borrowing, the assessee paid interest of Rs. 91003 on 17th June, 2014 and the same is found to be debited in the bank account of J & K Bank exhibited at page 13 of the paper book. Rs. 4 lacs was repaid on 30.06.2014 through RTGS as per exhibit 14 of the paper book and Rs. 3 lacs on 01.07.2014 and Rs. 321811 on 02.07.2014 through RTGS as per exhibit 15 of the paper book. The acceptance and the repayment of the loan transaction have been confirmed by the lender. Considering the facts on record, it can be safely concluded that the assessee has successfully discharged the primary onus cast upon it by virtue of the provisions of Section 68 of the Act and therefore no addition is called for under the provisions of Section 68 of the Act. This ground is also allowed.
9. In the result, the appeal filed by the Assessee is allowed.
Order pronounced in Open Court on 14 - 03- 2018
Sd/- Sd/-
(S. S. GODARA) (N. K. BILLAIYA)
JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER
Ahmedabad: Dated 14 /03/2018
Rajesh
Copy of the Order forwarded to:-
1. The Appellant.
2. The Respondent.
3. The CIT (Appeals) -
4. The CIT concerned.
5. The DR., ITAT, Ahmedabad.
6. Guard File.
By ORDER
Deputy/Asstt.Registrar
ITAT,Ahmedabad