Income Tax Appellate Tribunal - Kolkata
M/S. Mrigiya Electronics Pvt. Ltd., ... vs Acit, Cc-Vii, Kolkata, Kolkata on 5 April, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA BENCH "A", KOLKATA
BEFORE SH. P.M.JAGTAP, VICE PRESIDENT &
SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER
ITA No.153/Kol/2015
(ASSESSMENT YEAR-2007-08)
M/s. Mrigiya Electronics vs ACIT,
Pvt.Ltd., P-41, Princep Street, Central Circle-VII,
Kolkata-700001. Aayakar Bhawan, Purva,
PAN-AABCM6918M 110, Shantipally,
Kolkata-700107
(Appellant) (Resondent)
ITA No.116/Kol/2015
(ASSESSMENT YEAR-2007-08)
ACIT, vs M/s. Mrigiya Electronics
Central Circle-3(1), Industries P.Ltd., P-41,
Aayakar Bhawan, Poorva, Princep Street,
110, Shantipally, Kolkata-700001.
Kolkata-700107. PAN-AABCM6918K
(Appellant) (Resondent)
ITA No.1867/Kol/2013
(ASSESSMENT YEAR-2008-09)
DCIT, vs M/s. Mrigiya Electronics
Central Circle-VII, P.Ltd., P-41, Princep Street,
Aayakar Bhawan, Poorva, Kolkata-700001.
110, Shantipally, PAN-AABCM6918K
Kolkata-700107.
(Appellant) (Resondent)
Appellant by None
Respondent by Sh.A.K.Nayak, CIT DR
Date of Hearing 26.03.2019
Date of Pronouncement 05.04.2019
ORDER
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER
All these three appeals above filed by the assessee and the Revenue against separate orders dated 14.11.2014, 14.11.2014 & 28.03.2013 passed by CIT(A)-1, Kolkata for AY & 2007-08, 2007-08 & 2008-09 respectively.
ITA No.153 & 116/Kol/2015 & 1867/Kol/2013 (ASSESSMENT YEAR-2007-08, 2007-08 & 2008-09)
2. First we take up ITA No.153/Kol/2015 by the assessee.
ITA No.153/Kol/2015(ASSESSMENT YEAR-2007-08)
3. At the time of hearing, we find no representation on behalf of the assessee nor any application filed seeking adjournment. Therefore, it appears that the assessee is not interested in prosecuting this appeal. Thus, this appeal is dismissed for non-prosecution.
4. In the result, the appeal of the assessee is dismissed for non- prosecution.
ITA No.116/Kol/2015 & 1867/Kol/2013(ASSESSMENT YEAR-2007-08 & 2008-09)
5. At the time of hearing, as discussed above, no representation on behalf of the assessee nor any application filed seeking adjournment. Thus, we proceed to hear Ld.DR and to pass a consolidated order.
6. Heard Ld.DR and perused material available on record. We find that ITAT, Kolkata Benches decided similar issue and on identical facts raised by the Revenue in ITA No.524 & 525/Kol/2014 and ITA No.1866/Kol/2013 in the case of DCIT vs Topgrain Management Pvt.Ltd. dated 08.02.2019. For better understanding, the relevant portion is extracted herein below for ready-reference:-
2. " T h e as se sse e i n t h e pr e se nt c ase i s a C o mp an y. T he i n ve sti g a ti o n c a rr i e d o ut b y the D e p ar t m e nt of Inc o me T ax ( In ve sti g a t i on ) , K ol k a t a re ve al e d t ha t s o me e nti ti e s we r e i nv ol v e d i n pr o v i d i n g ac c o mm o d ati o n e n tr ie s t o v ar io us c o mp an i e s b as e d i n M um b ai , wh i c h i n t u r n had us e d th e s ai d f unds f or p ay m e n ts to M ad hi p ur a M er c an ti l e Co op er a ti v e B an k at M u m bai , whi ch wa s c o n trol l e d b y S hr i K e tan P ar e kh. Si nc e t he ass e ss e e - c o m p an y was o ne of su c h e n ti t i e s, t h e s t a te me n t of i ts D i re c to r Sh r i P r am o d Sh ar m a was r e c o r de d u n de r sec tio n 1 31 b y t he D D IT ( Inv e s ti g at i o n) , K o l kat a o n 15 . 1 2 . 2 0 0 6. In th e sa i d s t at e me nt g iv e n o n o ath , Shr i P r am o d Sh ar m a ac c ep te d th a t h e h a d go t c as h of e qui v a l en t am o u nt f r o m t h e M um ba i b ase d C o m p an i e s b el ong i ng to Sh r i K e t an Par e k h G r o up an d af te r dep o s i t i n g t he s ai d c ash i nt o the B a nk ac c o un t of the as se ss e e-
c o mp any , c h eq ue s we r e i s su e d to the sai d Co mp an i e s . H e al so f urn i sh ed a l i st of c h e q ue s so i s s ue d ag ai n s t c as h th at had b e e n r e c e i v e d b y hi m. A l th o u gh Shr i P ra m o d S har m a s ub se q u e n tl y f il e d an af f i d av i t re tr a c ti n g h i s st atem e nt, t he A sse s si n g Of f ic e r d i d n o t acc ep t th e sa m e o n th e ba s i s of th e e nq ui r ie s c on duc te d b y the Inv e s t i g a ti o n W i n g o n a te st- c h e c k b as i s, wh i c h re v e al e d th a t c as h was de po si t ed i n Page | 2 ITA No.153 & 116/Kol/2015 & 1867/Kol/2013 (ASSESSMENT YEAR-2007-08, 2007-08 & 2008-09) v ar io us B ank ac c o u n ts i n d if f e r en t st ag e s. A c c o r di ng to t he A s se ss i ng Of f ic e r, t hi s f ac t ua l po si ti o n sub st a nti a te d the s t at e m e n t of Shr i Pr a m o d S ha r m a , D i re c t o r of t he as se s s ee- c o mp an y th at c as h was i n d e e d re c e i v ed b y the as se ss e e - c o m p an y i n l i e u of c he q ue s g i v e n to v ar io us c om p an i e s b el o ng i n g to Ke t an P ar ek h G ro u p. H e ac c o r d i n gl y he l d th a t ac c om m o d a ti on e ntr ie s we r e g i ve n by the as se ss e e - c o m p an y to v ar i o u s M u m ba i b a se d c o m pani e s bel o ng i n g t o K e t an P ar e kh G r o up an d s i nc e th e ac co m m o d ati o n e ntr ie s s o gi ve n du r i ng t he pr e v io us y e ar r e l ev an t t o A . Y. 20 0 7- 0 8 ag gr e ga t e d to R s. 2 3 , 4 8, 4 5, 84 7/ - , he ad d e d th e c om m i s si o n i n c o me @ 2% a m ou nt i ng to R s. 4 6, 9 6, 90 7/ - to t he to t al i n co me of th e as se s see i n the as se ss m e n t co m pl e te d f or A .Y . 200 7- 0 8 un de r se c t io n 1 4 3 ( 3) v i d e an o r d e r d ate d 2 9. 12. 20 09 . In th e as s es sm e n t s o m ad e, he al so m ade an ad di t i o n of R s. 23, 48, 45 , 847 /- i n th e h an d s of th e a ss e ss ee o n p ro te c ti ve b a si s o bs e r v i ng t ha t the un e x p l ai n ed i n co m e to tha t e x t e nt i n the f o rm of c as h g i v e n by th e M um b ai b a se d c om p ani e s wa s as s e s sabl e o n su b s t an t i ve b as i s i n t he ha nd s of t he s ai d c om pani e s. T he A s se ss i ng Of f ic e r al so r eo pe ne d th e as s es sm e n t s f or A . Ys . 200 5- 0 6 an d 200 6- 0 7 and i n the a ss e s s me nts m ad e u n de r s ec t i o n 1 4 3( 3) / 1 4 7 vi de o r de r s d ate d 3 1. 12. 20 08, he m ade s i m il ar ad di t i o n o n ac c o unt of c omm i s si o n i nc o me at the r ate of 2% am o u n ti ng to R s. 8 3, 7 4, 76 0/- an d R s . 37, 43, 840 /- to the to t al i nc o m e of th e ass es se e f o r A . Y. 2 0 05- 0 6 and 2 00 7- 08 r e sp e c t i ve l y. H e al so m ad e ad di ti o n s of Rs. 4 1 , 87 , 38, 000/- and R s. 18, 7 1, 9 2, 0 00 /- s i m il ar l y o n pr o t e c tiv e b asi s i n th e ass e ss m e nt s c o mp l ete d u nd e r sec t i o n 14 3( 3 ) / 1 4 7 f o r A . Y s. 2 005- 06 and 20 06- 07 r e sp e c t i ve l y f o r th e t o tal am o u n t of acc o mmo da ti on e n t r ie s p ro v i de d b y the as s e s se e - c o m p any to th e M u m b a i b as e d C omp an i e s be l on g i n g to K e t an P ar e kh G r o up o b ser v i n g th a t u n ex p l ai ne d i nc o m e to th at e x te n t was l i ab l e to b e as s es se d o n s ub s t an ti v e basi s i n th e h an d s of the s ai d c o m p ani e s f or th e c a sh g iv en t o t h e as se ss e e- c o m p any . The A s se ss i ng Of f icer m ad e f urth e r ad d i t io n s of R s. 3, 0 6, 6 2, 0 00/ - and R s. 3 2, 8 5, 0 00 /- to t h e to t al i n co me of th e as se s see f o r A . Y. 2 005- 06 and 2 00 6- 07 re s pe c t i ve l y o n ac c o u nt of u ne xp l ai n ed c as h de p o si ts f ou nd to b e m ad e i n the B an k ac c o u nt s of th e as se ss e e.
3. A g ai n st t h e o rd e r s p as se d by th e A ss e s s i ng O f f ic er unde r se c tio n 14 3( 3 ) / 1 4 7 f or A. Y. 2 0 05- 0 6 and 2 00 6- 07 an d un de r se c t i o n 143( 3) f or A . Y . 20 0 7- 0 8 , ap pe a l s we r e p r ef e r re d by the as s e se e- c o mp an y bef ore th e l d . C IT ( A pp eal s) an d af te r c o n si d e r i n g th e s ub mi ss i o ns m ade b y th e as s es se e a s wel l a s t he ma t e r i al a v ail abl e o n r ec o r d, the l d. C IT ( A p pe al s) de l e te d th e add i ti o n m ad e by the A s se ss i ng Of f ic e r t o th e to t al i n c o me of th e a ss e s se e f or A. Y. 20 05- 06 o n ac c o un t of the al l e ge d ac c o mm o d a ti on e nt r i e s gi ve n to the M u m b ai b as e d Co m pan ie s i n the f orm of c om m i s si o n i nc om e at th e r a t e of 2% as we l l as f ur t he r ad d i t io n o n a c c o u n t of pr o tec t iv e b a si s f o r t he f ol l o wi ng r e as o ns g ive n i n p ar ag r ap h n o . 6 of h i s i m pug n ed o r de r : -
" 6. I h av e p e r u se d the r e l ev an t o r d e r s and c o ns i de re d the m ate r i al pl ac ed o n r ec o r d. I f ind f r o m t he app e al f ol de r th a t i n c o ur s e of the app el l ate p r oc ee di ng s, m y l e ar ne d pr e de c e sso r tr ie d t o as c e r t ai n ab o u t t he c as e s whe r e s u b s t an t i v e ad d i ti o n s we r e m ad e c or r e sp o n di n g t o the pr o t e c tiv e a d d i ti on i n th e pr e se nt c as e; an d al so, ab o ut th e f a te of the ap p e al s i n th o s e c ase s . The Ld C IT ( A ) c al l ed f or th e r ep or t v i de hi s l e tt e r d at e d 23- 0 7- 2 00 9 whi c h wa s f ol l o we d by r e m i nd e r s d ate d 17- 08- 201 0, 1 3- 0 7 - 2 0 1 1, 30- 1 0- 2 013 an d 19- 11- 201 3. H o we v e r , th o u gh a s u b s t an t i al pe ri od of 4 & 1/ 2 y ear s ha s e l ap s e d, no th i ng Page | 3 ITA No.153 & 116/Kol/2015 & 1867/Kol/2013 (ASSESSMENT YEAR-2007-08, 2007-08 & 2008-09) h a s b e e n h e ar d i n th i s reg ar d f r o m the A O . In thi s f ac tu al b ac k g ro u n d; g i ve n t he f ac ts of the c ase and t he f indi n gs of th e AO i n hi s ass e s s me nt o r de r; ' and al s o, the de c i si o n s of th e H o n 'bl e B en c he s of the j ur i s d ic t i o nal IT A T in si m i l ar c as e s in vo l v i ng i de nt i c al f ac t s an d c i rc u m s t a n c e s, th e pr e s e nt app e al s no w be i n g de c i de d o n th e b a si s of th e m at e r i al av ai l ab l e o n r e c o r d . I f i nd th at th e A O h as m ad e t he ad d i ti o ns o n the b as i s of the ad m i s s i o n m ad e b y t he di r e c t o r b ef ore the D D IT ( Inv ) whi c h wa s l a te r r e t r ac t e d. It i s a se t tl e d l e g al p ro po s i tio n th a t a m e re ad mi s s i o n whi c h i s l ate r r e tr ac t e d and wh i c h i s n o t c o r ro b or a t e d or s up po r t ed by any i nde p e n de nt m ate r i al c a n n o t be m ad e th e b asi s .f or ' a dd i ti o n. O n ce the ad m i s s i o n m ad e b y th e d i r e c t o r wa s r e t rac t e d, th e o nus was o n th e A O to b ri ng po s i ti v e m ater i al on re c o r d wh i c h c o ul d· c or r o b or a te o r s up po r t th e ad mi s s io n . B ut , i n the pr e s en t c ase , no s uc h m a te r i al has be e n b r o u g h t o n r e c o rd by the A O . O n the c on tr ar y, th e AO ha s si mp l y re jec t e d th e r et r a c t i o n wi t h o u t a ssi g ni n g an y re aso n. T he A O has no t e ve n d i sc u ss ed i n hi s ass e s s me nt o r de r as to wh y the r e t r a c ti o n m a d e - by t he d ir e c to r t h ro u gh a s wo r n af f id av i t was no t ac ce pt abl e to h i m . M or e ov er , t he A O h as b r o ug ht o n r ec o r d n o i nd epe n de nt m ate r i al whi c h c o ul d p o ss i bl y c or r o bo r at e o r sup po r t the ad mi ss i o n m a de e ar l i er b y the di re c tor of th e as se ss e e c o m pan y. In th i s f ac tu al b ac k g ro u n d, I a m of the co ns i de re d vi e w t h at t he A O has e r re d i n l a w a s wel l as o n f ac t s i n re st i n g hi s as se s s m e nt o n t h e ad m i ssi o n of the dir ec tor whi c h wa s l at e r r e t r ac t e d an d wh i c h wa s n o t c o rr o bo r ate d o r s up po rte d by an y i n d e pe n de n t m a te r i al on r ec o rd . I al so f ind f r om the as s e ssm e n t o rd e r th at th e ad d i ti o n o n ac c o u nt of u n e xp l ai n e d c a sh was m ade by the A O o n p ro te c ti v e b asi s. T he A O has hi ms el f g iv e n the f i ndi ng i n hi s as s e ssm e n t o rd e r t ha t t he ass e ss ee co m p any h ad i s s ue d c h e qu e s b y t ak i n g e q ual am o unt of c ash f r om v ar i o us c o mp ani e s; and t h at, s uc h c as h wa s ass e s s ab l e as u n e xp l ai n e d i n c o m e i n t h e hand s of tho se c o mp ani e s. T he A O h as t h en ad d e d t he s am e c ash on p r o te c tiv e basi s as u n e xp l ai n e d i nc om e of the as s e s s ee c o mp any wi tho ut as s i gn i n g a n y c o nc re te r e a so ns. I f in d no b as i s o r j u stif i c at i o n f o r t he A O to c on si de r o n pr o tec t i v e b a si s s u c h c a sh as u ne xp l ai ne d i nc o m e of the ass e ss e e c o mp any wh i c h he hi m se l f he l d was as s e ss ab l e as u n e xp l ai n e d i n c o me i n the han ds of the v ar i o u s c o mp an i e s who ha d al l eged l y p ur c has e d ac c o m m o d at i o n e ntr ie s. The ad di ti o n on p r o te c ti ve b as i s o n ac c o u nt of une x pl ai ne d c ash b y th e A O c o ntr ad i c t s hi s o wn f i ndi ng s that s uc h c ash wa s as s e ss abl e as unex pl ai ne d i nc o m e i n th e ' hands of th e var i ou s co mp an i e s wh o had al l ege dl y p urc has e d ac c o mm o d a ti o n e nt r ie s . A bo ve al l , id e n ti c al ad di ti o ns m ad e by t he A O i n si m il ar c as es we r e del e te d by m y l e ar ne d p r ed ec e ss or as we l l as by the H o n'bl e B e nc he s of th e j u r i s di c ti o n al IT AT . In o th e r wo r d s , s i m il ar ad di ti o ns b ase d o n th e ad mi s s io n of th e dir e c to r of the c o m p an y whi c h wa s l ate r r e tr ac te d wa s de l e te d by the j u r i sd ic t i o n al IT A T in the as se s sme nt of suc h co m p any . In th e se c ase s , th e di r e c to r of th e c o mp an y m ad e ad m i ss i o n Page | 4 ITA No.153 & 116/Kol/2015 & 1867/Kol/2013 (ASSESSMENT YEAR-2007-08, 2007-08 & 2008-09) r e g ar d i n g p r o v i di n g ac c o mm o d a ti o n e nt r y i n l ie u of c as h whi c h wa s l ate r re t r ac te d . T ho ug h the A O m ad e si mi l ar ad di ti o n s o n ac c ou nt of un ex pl ai ne d c as h and c o m m i ss i o n i n co me i n t he c a se of the c o m p an y, th e s ame wa s del e te d by t he L d C IT ( A ) as we l l as b y the j u ri sd ic ti o n al IT A T . The i s su es i n t h e p r e s e n t app e al are thu s c o v e r e d b y the o r d e r s of t he H o n 'bl e B e nc he s of t he . j u ri sd ic t i o n al IT A T whe r e i n si mi l ar ad di ti o ns, m ad e u nde r i d en t i c al f ac t s an d c i rc u m s t a n c e s, we r e del ete d. R esp e c tf ul l y f ol l o wi ng the de c i si o n s of th e j ur i s d i c ti o nal ITA T , i t i s to b e he l d th at th e ad d i ti o n s ma de by t h e A O o n ac c o u nt of une x p l ai ne d c ash an d c o mm i ssi o n i nc o me i s ne i t he r su st ai n abl e i n l a w no r o n f ac ts . T he ad d i ti o ns of R s. 4 1, 8 7, 38 , 00 0/ - an d R s . 8 3 , 7 4 , 76 0/- i s di rec te d t o be de l et e d. G ro un d no 2 & 3 ar e al l o we d" .
Fo r al m o st i de n ti c al r e as o n s as g i v e n i n hi s i m p u gn e d o r d e r f o r A . Y. 20 0 5- 0 6, t h e l d . C IT ( Appe al s) al so de l e t e d t h e s i m il ar ad di t i o ns m ad e by the A ss es si n g O f f ic er to t he to t al i nc o me of th e as s e s s e e f o r A . Y. 20 0 6- 0 7 a n d 20 0 7- 0 8 o n ac c o u nt of t he al l e ge d acc o m mo da ti on e n t r ie s g ive n t o t he M u mb ai base d Co m pani e s i n t he f o rm of co m m i ss i o n i n co me an d f ur the r ad d i t i o n o n ac c o un t o f pr o tec ti v e b as i s.
4. A s re g ar d s t he ad di t i o n of R s. 3, 0 6, 6 2, 00 0/ - m ade by th e A s se s si n g Of f ic e r to t h e to t al i nc o me of the ass e s s ee f or A . Y. 200 5- 0 6 o n ac c ou n t o f un ex pl a i ne d c as h de pos i t s f ound t o be m ad e i n the B an k ac c o u nt s , th e l d. C IT ( A p pe al s) di d no t f ind th e s am e t o be s ust ai n abl e f or th e f ol l o wi n g r e as o n s g i ve n i n par ag r ap h no . 8 of hi s i m p ug ne d o r d e r: -
" 8. I h av e c o n si de r e d t he as se s sm e nt o rde r and the r e m a nd r ep o r ts of t he A O . It wa s co nt e nde d b ef o re me th a t th e c a sh de po si t s i n the b an k ac c o u nt was v e r if iab l e f r om t he c a sh bo o k of the a ss e s se e c o mp any . It was f urth e r c o n te n de d t ha t t he c a s h b al an ce s av ail ab l e i n the c ash b oo k wer e d ue to c as h wi th dr a wal s m ade e arl i e r f r om the b a n k ac c o u nt ( wh i c h was v er if i abl e f ro m the b an k s ta te m en t) and t he s al e pro c e e d s o f s har e s ( wh i c h was d ul y s upp or te d by s al e s i nv o i c e s ) . T he A O has ad m i t te d i n h i s re m and re po rt s t h at t he c ash d e p o s i t s i n th e b an k ac c ou nt we r e ve r if i abl e f rom the c ash bo o k whi c h wa s p r o d u c e d be f ore hi m i n c o u r se of the re man d pr o c ee d i n g s. T he A O h as f ur the r ad m i tt ed th at the s al e pr o c ee d s of sh a r e s ref l ec te d i n the c as h bo ok ar e dul y s u pp o r te d by s al e s i nv o i c e s wh i c h we r e al s o p ro duc e d bef o r e h i m. T he A O has f o und no de f e c t i n th e c as h bo o k of the a s se sse e c o m p any . T he A O has no t p oi n te d o u t an y r e c ei p t s r ec o r de d i n th e c as h bo o k who se so urc e wa s ho t e xp l ai n ed . . T h e r e m an d r ep o r ts of th e A O c o nt ai n no ad ve r se f i nd i n g o r r e mar k abo ut the c a sh b o o k. In t hi s f ac tu al b ac kg r o u n d, th e o nl y co nc l u si o n t h at c an po ss i bl y be dr a wn i s th a t t h e c as h de po si ts i n t he b an k ac c o u nt ar e e xp l ai n e d wi th r ef er enc e to t he c ash bo o k of the as s e sse e co m pa ny. T he AO h as no te d i n hi s re man d r e p o rt s t h at ap ar t f ro m th e bank s t at e me nt , c as h ' bo o k an d th e s al e s i nv oi c e s, the as s es s ee c oul d pr o d uc e no o the r e vi d en c e f or v er if ic ati o n. B ut the n , i t h as no t be e n c l ar if i e d b y th e A O as to wh at m o re ev i de nc e he re q uir e d Page | 5 ITA No.153 & 116/Kol/2015 & 1867/Kol/2013 (ASSESSMENT YEAR-2007-08, 2007-08 & 2008-09) th e a s se s se e to pr od uc e f o r v er if ic ati on . T h e A O has o b se r v ed t h a t t h e t r an s ac t i o ns i n sh ar e s we r e m ade i n c ash . B u t th e n , th e sal e s i nv o i c e s al on g wi t h t h e PA N of th e b u ye r s wa s p ro d uc e d b ef o re th e A O i n c o u r se of the r e m a nd pr oc ee di n gs an d t he re m an d r e po r t s c o n t ai n no ad ve r se f in di n g s i n th i s r e gar d. I t h er ef or e ag re e wi th the L d A R th a t th er e i s n o ad v e r s e f ind i n g i n th e re man d r e p o rt s of t he A O . T he AO h as c at e g o r i c al l y adm i tt e d th at th e b an k st a te m e nt, c as h bo o k and sal e s i nv o i ce s we r e pr o d uc ed bef or e h i m and tha t t h e c ash de p o s i ts i n the b an k a cc o u nt we r e v er if i abl e f r om t he c as h bo ok . I am th e ref o re of the c o ns ide r ed v i e w th at s u c h c as h de p o si ts i n t h e b an k a c co un t wh i c h we r e d ul y v e r if i abl e f r om the c ash b o o k of t he as se s se e c o m p any co u l d no t b e tr e at e d as i ts u n d i s c l os ed i nc o m e . T he addi t i o n of R s . 3 , 0 6, 6 2, 0 0 0 / - i s de l e te d. G ro u nd n o 4 i s al l o we d . G ro u nd n o 5 i s d i r e c te d ag ai ns t t h e i n i t i at i o n of p e nal t y pr o c ee d i n g s u / s . 27 1( 1 ) ( c ) wh i c h is pr e m atur e f or ad j u d ic a ti o n at thi s s t ag e . H e nc e, g ro un d no 5 i s di sm i s se d. G r o u n d n o 6 i s g e ne r al i n nat ur e " .
Fo r al m o st i de n ti c al r e as o n s as g i v e n i n hi s i m p u gn e d o r d e r f o r A . Y. 20 0 5- 0 6, th e l d. C IT ( A p pe al s) al s o hel d tha t th e s i mi l ar add i t i o n m ade by th e A sse s si n g O f f ice r o n ac c o unt of une xp l ai n e d c a sh de p o s i ts f o un d to b e m a d e i n th e B a nk ac c o u nts of the as s e s se e f or A .Y . 20 06- 0 7 was no t su st a i n abl e . A cc or di n gl y he del e te d th e s e ad di ti o ns m ad e b y t he A s se s si n g Of f ic e r to th e to tal i nc om e of the as s e s s ee f o r A . Ys. 200 5- 0 6 an d 2 0 0 6- 0 7 . Ag g ri e ve d b y t he or de r s o f the l d. C IT ( A p pe al s) gi v i ng r e l i ef to th e a ss e ss e e f or al l t h e thre e y e ar s un de r c o ns i de r ati o n, th e R e ve nu e h a s p r ef er r e d th e s e app e al s bef or e the T ri b un al .
5. A t th e t i m e of h e ari ng of the se ap pe al s f ix ed o n 2 8. 0 1. 2 00 9, no n e h as ap pe ar e d o n be hal f of the as s e s se e . T h e se ap pe al s ar e , th e ref o re , be i n g d i sp o se d of e x - p arte q ua the r e s po nde nt - as se ss ee af te r he ar i n g th e a r gu m e n t s of t he l d. D . R. and p er u s i n g th e r e l e v ant m ate r i al av ai l ab l e on r e c o r d . T he t wo c o m m o n i ss ue s i nv o l v ed i n al l th e s e th r ee ap pe al s r el a te to the de l e t io n by th e l d. C IT ( A pp e al s) of the ad di ti o n s m ad e by t he A s se s si n g Of f ic e r o n ac c o u nt o f al l e ged ac c o mm o d a ti on e n tr i e s g iv e n t o the Mu m b ai b as e d C o m p an i e s o n pr o t e c tiv e b a si s an d t h e del e t io n b y th e l d. C IT ( A pp e al s) of t he ad d i tio n m ad e b y th e As se s si n g Of f ic er on ac co un t of c o m mi ss i o n i nc o me al l eg ed l y rec eiv ed b y the as se ss e e f or gi v i n g ac c o m m o d at i o n en t r i e s. It i s ob se r v e d th a t th e si m il ar i ss ue s we r e inv o l ve d i n s o me o t he r c as es an d al l th e se c as e s we r e adj o ur ne d i n t he p as t and al so bl o ck e d f or s o m e p er i o d f o r ge t ti n g the i nf o rm ati o n ab o u t t he st a tus or o u tc o m e of th e c ase s wh e r e th e si m il ar a mo u nts we r e add ed o n su b s t ant i ve b a si s . In sp i te of suf f ici en t ti m e g i ve n t o bo th th e par ti e s, the y have f ai l e d to f urn i sh th e sai d i nf or m at i o n. It i s we l l se tt l e d t h at p r o te c t iv e as s es sm e n t i s p e r m i ss i b l e in l a w an d i n c ase a d o ub t o r am b i g ui ty ab o u t r e al e nt i ty i n wh os e h an d s a p ar ti c ul ar i nc o me i s t o be as se s s e d, th e as se s si n g au th o r i ty i s e n ti tl e d to h av e re co ur se to mak e a pr o t e c tiv e a s s e ssm e n t. A s hel d by t he H o n' bl e Sup r e m e C o ur t i n the c as e o f L al ji H ar id as -v s.- IT O ( 43 IT R 3 87) , t he O f f ice r may, wh e n i n do ub t, to s af e gu ar d th e i nte r e s t of the r ev e n ue c an as se s s i t i n mo re th a n o n e h a nd b u t t h i s pr oc e d ure c an be p er m i tt e d o nl y at th e s t ag e of as s es sm e n t. P r o te c t ive as s e ssm e nt be c om e s r ed und an t whe n the s u b s t an t i v e a ss e ss me n t be co me s f inal an d if t he subs t an ti ve Page | 6 ITA No.153 & 116/Kol/2015 & 1867/Kol/2013 (ASSESSMENT YEAR-2007-08, 2007-08 & 2008-09) as s es sm e n t f ai l s, i t i s pr o te c t i v e as se ss m e n t whi c h i s t o b e tr e ate d as s u b s t an t i v e. K e ep i n g i n v i e w t hi s c o r ol l ar y be t we e n t h e s ubs t an ti ve as s es sm e n t a n d pr o t ec ti ve as se s sm e nt, a n ap pe al ag ai ns t the pr o t e c tiv e as se ss m e n t sh o ul d o r d i n ar il y a wai t the o u tco m e of the s u b s t an t i v e a sse s s me nt s o t hat the pro te c tiv e ass e s s me nt c an be i n co nf o r mi t y wi th th e s ub st an t i v e a ss e s s m ent . In t he c ase of C IT - v s .- S u r e n d r a G ul ab C h a n d M o di ( 1 40 ITR 51 7) , the ap pe al ar i s i ng o u t of th e p ro te c tiv e a ss e ssm e nt was di s po se d of by the ap pe l l ate au tho ri ty i. e . T r i b u n al v ac at i n g t he p ro tec ti v e as s e s s me nt wi th o u t wai t i n g f o r the f in al ou tco m e of th e p ro c ee di n g s ar i si n g f rom the su b s tan ti ve as s es sm e n t, wh i c h m a t t er wa s pe nd i ng i n the H o n' bl e Sup re me Co ur t. T he H on ' b l e G uj ar a t H i g h Co ur t he l d th at t h e T r ib u nal wa s no t j us t if ie d i n pr o ce ed i ng wi th t h e m at t e r an d i n di s po si ng of it i ns te ad of bl o ck in g i t t il l t he d i s po s al of th e m at te r pe ndi ng i n t he H o n' bl e Sup re me C o ur t i n o rd e r t o br i n g i t i n c o nf orm i t y wi t h the v ie w of the H o n' bl e Supr e me Co ur t. T h e H o n' b l e G u j ar at H i g h C o ur t ac c o r di n gl y di r e c te d the T ri b u n al to ke ep th e m at te r al ive and p e n di n g a wa i t i n g the de c i si o n of th e H on ' bl e S u pr e me C o u r t i n the pr o c e e d i ng s ar i si n g f r om the s u b s t an t i v e a s se s sm e n t.
6. In t h e pr e se n t c as e, t he l d . C IT ( A ppe al s) di d no t a wa i t the o u tc om e of th e pr o c ee d i n g s ar i si n g f rom t he s ub st anti v e as se s sm e nt an d s i n c e th e sai d inf o r mat i o n was no t f o rt hc o m i n g e v e n af te r a c o n sid er a bl e pe ri o d f r o m th e c o nc e r ne d a sse ss i ng of f i ce r, he pro c ee de d to d i sp o s e of the a p p eal s ar i si n g f rom t he p r o te c ti ve as se ss m e n t s b y hi s i m p u g n e d o rd er s an d de l e te d the ad d i ti o n m ad e o n pr o te c t i ve b asi s wi t h o u t a wai ti n g th e f in al o utc o me of th e p ro c ee d i n g s ar i s i ng f rom th e s u b s t an t i v e a sse s sm e n t. K ee p i ng i n v ie w t h e de c i s io n of the H o n' b l e G uj ar a t H i gh C ou r t i n t h e c ase of C IT - v s. - S ur e ndr a G ul ab C h an d M o di ( s up r a) , we h ol d th a t the l d. C IT ( A pp e al s ) was no t j us tif ie d i n d el e t i ng th e ad d i t i o ns m ad e b y th e A ss e s si ng Of f i ce r o n p ro te c ti v e b a si s i n al l th e th r ee ye ar s u n de r c o n si d er a ti on wi t ho ut a wai ti ng f or the f i nal o u tc om e of t he p r o c e ed i ng s ar i s i n g f rom thi s sub s t an ti v e as s e s sm e n t . W e, th er ef ore , s e t a s id e t h e i m p ug ne d o r de r s of the l d. C IT ( A ppe al s) o n th i s i ss u e an d re m i t th e m a t te r back to hi m f or ke ep i ng i t al i v e an d pe nd i n g til l t he ou tco m e of th e p roc ee di ng s ari si n g f ro m t he su b s tan ti ve as s es sm e n t.
7. A s r e g ar d s th e i s sue rel ati ng t o the add i t io ns m ade o n acc o u nt of c o mm i s si o n i n c o me al l e ge dl y rec ei ve d by the as se s se e f o r giv i n g ac c o mm o d a ti on e n tr i e s, we f i nd th at th i s i ss ue i s c o n se q ue nt i al t o th e i s su e r el at i n g t o th e ad di ti o n m ad e o n pr o t ec ti v e b asi s o n a c co un t of ac c o mm o d a ti on en t ri es al l e g ed l y g i ve n b y t he ass e s se e - c o m pany to the M um b ai b a se d c o mp an i es . Si nc e t he sai d i s s u e i s r e mi t te d b ac k b y us to th e l d. C IT ( A pp e al s) , we al so r e m i t the c o n s e q ue nti al i s su e re l ati n g to a dd i ti on o n ac co u n t of c o m mi s s i o n i n c o m e b ac k to t he l d. C IT ( A p pe al s) f or de c i d i ng the s ame af res h. G r o unds No . 1 & 2 of the R e ve nu e' s a p p e al s f or al l th e th r ee y e ars u nd e r c o n si de r a t i o n are ac c o rd i n gl y tr e a t e d a s al l o we d f or s tati s t i c al p ur p o s e s."
7. In view of the above, we therefore, set a side the impugned orders of the ld. CIT(Appeals) on this issue and remit the matter to him for keeping it alive and pending till the outcome of the Page | 7 ITA No.153 & 116/Kol/2015 & 1867/Kol/2013 (ASSESSMENT YEAR-2007-08, 2007-08 & 2008-09) proceedings arising from the substantive assessment. Thus, the grounds raised by the Revenue are allowed for statistical purposes.
8. In the result, the appeal of the assessee is dismissed and both appeals of the Revenue are allowed for statistical purposes.
Order pronounced in the open court on 05.04.2019.
Sd/- Sd/-
(P.M.JAGTAP) (S.S.VISWANETHRA RAVI)
VICE PRESIDENT JUDICIAL MEMBER
Date:- 05.04.2019
*Amit Kumar*
Copy forwarded to:
1. Appellant- [1]. M/s. Mrigiya Electronics Pvt.Ltd., P-41, Princep
Street, Kolkata-700001.
[2]. ACIT, Central Circle-3(1), Aayakar Bhawan, Poorva,
110, Shantipally, Kolkata-700107.
[3]. DCIT, Central Circle-VII, Aayakar Bhawan, Poorva,
110, Shantipally, Kolkata-700107.
2. Respondent- [1]. ACIT, Central Circle-VII, Aayakar Bhawan, Purva, 110, Shantipally, Kolkata-700107.
[2]. M/s. Mrigiya Electronics Industries Pvt.Ltd., P-41, Princep Street, Kolkata-700001.
[3]. M/s. Mrigiya Electronics Pvt.Ltd., P-41, Princep Street, Kolkata-700001.
3. CIT-Kolkata
4. CIT(Appeals)-Kolkata
5. DR: ITAT -Kolkata Benches By order AR/H.O.O ITAT, KOLKATA Page | 8