Tnr Infraprojects Limited (Formerl ... vs Assessee

M/s.TNR Infraprojects Deputy Commissioner of Limited, (formerly known as vs. Income Tax, TNR Infrastructures Pvt. Ltd), Circle-3(2), Punjagutta, Hyderabad Hyderabad. [PAN: AAEFT 7690 M]

(Applicant) (Respondent)

For Assessee : Shri Mod. Afzal, AR For Revenue : Shri Bandi Rama Krishna, DR

Date of Hearing : 16-01-2015 Date of pronouncement : 16-01-2015

ORDER

PER B. RAMAKOTAIAH, A.M :

This application is preferred by assessee seeking stay of outstanding demand of Rs. 1,26,88,714/- raised by Assessing Officer consequent to the addition of an amount of Rs.2,63,30,000/- as un- explained expenditure u/s.69C of the Income Tax Act (Act). The Ld.CIT(A) confirmed the order.

2. It was the submission of the Ld.Counsel that assessee is a sub- contractor with M/s. Bajoria Construction Company. During the search, blank cheques and signed cheques were found in the said premises. Therefore, assessee was asked to explain the nature and source of 2 SA.No.109/Hyd/2014 in ITA.1525/Hyd/2014 M/s.TNR Infraprojects Ltd (Formerly known as TNR Infrastructure Pvt. Ltd)

amounts drawn by the persons of M/s. Bajoria Construction Company. Assessee explained that these amounts were drawn from the bank, shown in the respective books of accounts and used for labour payments and material purchased etc.. Assessing Officer was however, of the opinion that the amounts were given to M/s. Bajoria Construction Company and has not been used for the purpose of business. It is the submission that amount spent out of the books cannot be treated as un- explained investment u/s.69C. It was also further submitted that assessee was undertaking major sub-contracts and due to market conditions, does not have any cash flow and assessee would be in a position to discharge the liability if any, after ITAT's order subsequently. Since the case is already posed on 02-02-2015, it was the request for absolute stay of the demand.

3. Ld.DR, however, submitted that assessee has not furnished any explanation on the purpose of withdrawal of money by third party and therefore, Assessing Officer is correct, even though there may be some wrong section mentioned therein.

4. We have considered the issue. Since the Books of Accounts were not rejected and as assessee submits that the cash withdrawals were recorded in the Books of Accounts, there is a prima-facie case made out by assessee. Considering the balance of convenience, we are of the opinion that the entire demand can be stayed till the disposal of appeal or six months period whichever is earlier. Assessing Officer is directed to withdraw any attachments, if any, made on the bank accounts and not to initiate any coercive steps in the mean time. Since the case is already posted on 02-02-2015, assessee should file necessary Paper Books before that and should not seek any adjournments without any valid reason.

3 SA.No.109/Hyd/2014 in ITA.1525/Hyd/2014 M/s.TNR Infraprojects Ltd (Formerly known as TNR Infrastructure Pvt. Ltd)

5. In the result, Stay Application is allowed.

Order pronounced in the open Court on 16th January, 2015

Sd/- Sd/-

(SAKTIJIT DEY) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER

Hyderabad, Date: 16th January, 2015

TNMM

Copy to :

1. M/s.TNR Infraprojects Limited, (formerly known as TNR Infrastructures Pvt. Ltd), 6-3-347/222, Flat No.9, Ishwarya Nilayam, Dwarakapuri Colony, Punjagutta, Hyderabad-500 082; C/o. Shri Mohd. Afzal, Advocate, 11-5-465, Sherson's Residency, Flat No.402, Criminal Court Road, Red Hills, Hyderabad-500 004.

2. Dy.CIT, Circle-3(2), Hyderabad

3. CIT(A)-III, Hyderabad

4. CIT-II, Hyderabad

5. D.R. ITAT, Hyderabad.