Jupax Distributors (P) Ltd. v. ACIT

Case Laws Analysis
REFERRED CIT v. Vam Resorts & Hotels (P) Ltd. 2019 TaxPub(DT) 5928 (All-HC)
REFERRED Renuka Philip v. ITO 2018 TaxPub(DT) 7804 (Mad-HC)
REFERRED Haryana Paper Distributors (P.) Ltd. v. Pr. CIT 2018 TaxPub(DT) 4734 (Guj-HC)
REFERRED CIT v. Nirma Chemicals Works (P) Ltd. 2009 TaxPub(DT) 0308 (Guj-HC)

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers2023 TaxPub(DT) 1561 (Surat Bench) IN THE ITAT, SURAT BENCH, SURAT PAWAN SINGH, J.M. & ARJUN LAL SAINI, A.M. Jupax Distributors (P) Ltd. v. ACIT ITA No. 165/Srt/2022 A.Y. 2012-13 27 February 2023 JUDGMENT Order under section 254(1) of Income Tax Act *Pawan Singh, J.M.* This appeal by the assessee is directed against the order of learned Commissioner (Appeals)-4, Surat (in short, the learned Commissioner (Appeals) dated 21-4-2022 for the Assessment year (AY) 2012-13. The assessee has raised following grounds of appeal: 1. That on the facts and circumstances of the case as well as in law, the learned Commissioner (Appeals) has erred in dismissing the appeal of appellant be holding the same as infructuous, whereas the same has not been infructuous under the law. 2. That on the facts and in the circumstances of the case as well as in law, the learned Commissioner (Appeals) has erred in dismissing all the grounds of appeal by holding the appeal filed before him as infructuous. 3. Appellant prays for deciding the appeal of the appellant on merits as per various grounds of appeal raised before Hon'ble Commissioner (Appeals) as mentioned in para 3 of appeal order of Commissioner (Appeals) and also in Form No. 35. 2. Brief facts of the case are that the assessee is a company, filed its return of income for the assessment year 2012-13 showing total income of Rs. 89541. The case was selected for scrutiny. During the assessment, the assessing officer noted that as per information available in the return of income, the assessee company was incorporated on 06-7-1995. During the year under consideration, the reserve and surplus of assessee was increased by Rs. 10.08 crores i.e. from Rs. 13.00 crores to Rs. 23.08 crores. The assessing officer further noted that the assessee has not furnished details of the investors about the share capital and share premium. Summon under section 131 of the Income Tax Act, 1961 (in short, the Act) was issued to the signatory director of the assessee company for his personal appearance and to produce the details of investors. The assessing officer recorded that no details were furnished nor books of account were produced, therefore, the source of capital raised and premium received against share capital remained unexplained as the assessee failed to discharge its onus. The assessing officer, accordingly, treated Rs. 10.50 crores as cash credit and added to the total income of the assessee. The Assessing officer also made disallowance under section 14A of the Act of Rs. 3,23,060 by invoking provisions of Rule 8D on his observation that as per balance sheet as on 31-3-2012, the assessee company has made investment of Rs. 36,12,000 in equity shares and no suo-moto disallowance under section 14A is made by the assessee. The assessment order was passed on 02-3-2015 under section 144/143(3) of the Act. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2023 TaxPub(DT) 1561 (Surat Bench)

IN THE ITAT, SURAT BENCH, SURAT

PAWAN SINGH, J.M. & ARJUN LAL SAINI, A.M.

Jupax Distributors (P) Ltd. v. ACIT

ITA No. 165/Srt/2022

A.Y. 2012-13

27 February 2023

JUDGMENT

Order under section 254(1) of Income Tax Act

Pawan Singh, J.M.

This appeal by the assessee is directed against the order of learned Commissioner (Appeals)-4, Surat (in short, the learned Commissioner (Appeals) dated 21-4-2022 for the Assessment year (AY) 2012-13. The assessee has raised following grounds of appeal:

1. That on the facts and circumstances of the case as well as in law, the learned Commissioner (Appeals) has erred in dismissing the appeal of appellant be holding the same as infructuous, whereas the same has not been infructuous under the law.

2. That on the facts and in the circumstances of the case as well as in law, the learned Commissioner (Appeals) has erred in dismissing all the grounds of appeal by holding the appeal filed before him as infructuous.

3. Appellant prays for deciding the appeal of the appellant on merits as per various grounds of appeal raised before Hon'ble Commissioner (Appeals) as mentioned in para 3 of appeal order of Commissioner (Appeals) and also in Form No. 35.

2. Brief facts of the case are that the assessee is a company, filed its return of income for the assessment year 2012-13 showing total income of Rs. 89541. The case was selected for scrutiny. During the assessment, the assessing officer noted that as per information available in the return of income, the assessee company was incorporated on 06-7-1995. During the year under consideration, the reserve and surplus of assessee was increased by Rs. 10.08 crores i.e. from Rs. 13.00 crores to Rs. 23.08 crores. The assessing officer further noted that the assessee has not furnished details of the investors about the share capital and share premium. Summon under section 131 of the Income Tax Act, 1961 (in short, the Act) was issued to the signatory director of the assessee company for his personal appearance and to produce the details of investors. The assessing officer recorded that no details were furnished nor books of account were produced, therefore, the source of capital raised and premium received against share capital remained unexplained as the assessee failed to discharge its onus. The assessing officer, accordingly, treated Rs. 10.50 crores as cash credit and added to the total income of the assessee. The Assessing officer also made disallowance under section 14A of the Act of Rs. 3,23,060 by invoking provisions of Rule 8D on his observation that as per balance sheet as on 31-3-2012, the assessee company has made investment of Rs. 36,12,000 in equity shares and no suo-moto disallowance under section 14A is made by the assessee. The assessment order was passed on 02-3-2015 under section 144/143(3) of the Act.