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Income Tax Appellate Tribunal - Indore

M/S Ultimate Constructions India ... vs The Acit Central -Ii, Bhopal on 7 June, 2019

     आयकर अपील य अ धकरण, इ दौर  यायपीठ, इ दौर

      IN THE INCOME TAX APPELLATE TRIBUNAL
               INDORE BENCH, INDORE

     BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
                       AND
     SHRI MANISH BORAD, ACCOUNTANT MEMBER

               IT(SS) No.140/Ind/2017
              Assessment Year: 2012-13
Ultimate Construction India
          P. Ltd.                      ACIT Central II
                             बनाम/
  G-1, Kamdhenu Tower,                     Bhopal
                             Vs.
   E 2/22, Arera Colony,
          Bhopal
        (Appellant)                       (Revenue)
 PAN:AABCU7603B
  Appellant by    Shri S.S. Deshpande, CA
Respondent by     Smt. Ashima Gupta, CIT-DR
Date of Hearing:                04.06.2019
Date of Pronouncement:          07.06.2019

                     आदे श / O R D E R

PER MANISH BORAD, A.M:

This appeal at the instance of assessee pertaining to Assessment Year 2012-13 is directed against the order of Ld. Commissioner of Income Tax(Appeals)-3, Bhopal, (in short 'CIT(A)'), dated 08.03.2017 which is arising out of the order u/s 143(3) of the Income Tax Act 1961(hereinafter Ultimate Construction India P. Ltd.

called as the 'Act') framed on 29.01.2016 by DCIT,(Central)- II, Bhopal. The assessee has raised following grounds of appeal:

"That on facts and in the circumstances of the case the Learned Commissioner of Income Tax(A) was not justified in confirming the addition of Rs.50,000.00 under section 68 on account of unexplained cash credit.

2. The sole grievance raised by the assessee is against the findings of the Ld. CIT(A) confirming the addition of Rs.50,000/- u/s 68 of the Act on account of unexplained cash credit.

3. We have heard rival contentions and perused the records placed before us. Brief facts relating to this issue are that consequent to search u/s 132 of the Act conducted on 29.01.2014 at the business premises of the assessee being Private Limited Company. Subsequently, assessment u/s 153A r.w.s 143(3) of the Act was framed on 29.01.2016 and the sole addition for A.Y. 2012-13 was for unexplained cash credit u/s 68 of the Act at Rs. 1,00,000/- towards the share capital received from two persons namely Bhupendra Vishwakarma & Vipin Chouhan at Rs.50,000/- each.

4. Appeal by the assessee against the addition of Rs.1,00,000/- brought part relief as the ld. CIT(A) on 2 Ultimate Construction India P. Ltd.

observing that as the corresponding addition has already been made in the hands of Bhupendra Vishwakarma, therefore, the addition of Rs.50,000/- needs to be deleted and in the case of Vipin Chouhan as no such addition was made in its own case addition was sustained.

5. From perusal of records we find that Mr. Vipin Chouhan is Director of the assessee company. He files regular income tax return. Confirmation of account has been filed. Identity of the share applicant and genuineness of the transaction is not doubted at any stage. As regards creditworthiness of Mr. Vipin Chouhan is concerned we observe that he declared income of Rs. 37,20,000/- for A.Y 2012-13. In his case assessment u/s 153A r.w.s 143(3) of the Act was framed on 23.03.2016 assessing income at Rs.62,72,427/-.

6. In these given facts and circumstances of the case where Mr. Vipin Chouhan has disclosed income of Rs.37,20,000/- and Revenue Authorities have assessed income at Rs.62,72,427/-, raising question about the creditworthiness of Mr. Vipin Chouhan to have given small amount of Rs.50,000/- towards share capital in the assessee company is not justified at the end of Revenue Authorities. We are therefore of the considered view that 3 Ultimate Construction India P. Ltd.

the impugned addition of Rs.50,000/- made u/s 68 of the Act for unexplained credit needs to be deleted. We, accordingly, set aside the order of the lower authorities and allow the appeal of the assessee.

7. In the result, appeal of the assessee is allowed. Order was pronounced in the open court on 07 .06.2019.

             Sd/-                             Sd/-
       (KUL BHARAT)                   (MANISH BORAD)
     JUDICIAL MEMBER               ACCOUNTANT MEMBER
Indore;  दनांक Dated : 07/06/2019
ctàxÄ? P.S/. न.स.

Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file.

By order Assistant Registrar 4