M/s Gaurav Distributors, Agra V. I.T.O.-1(1), Agra

CO 20/AGR/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6496 (ITAT-AGRA)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 11-10-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 11-10-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 18-05-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Assessee Lawyers: NAVIN GARGH
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO. 398/AGRA/2010 ASSTT. YEAR : 2002-03 INCOME-TAX OFFICER, VS. M/S. GAURAV DISTRIBUTOR S, 1(3), AGRA. 2/89, KOTLA HOUSE, KHANDARI, AGRA (PAN : AACFD 4423 G) C.O. NO. 20/AGRA/2011 (IN ITA NO. 398/AGRA/2010) ASSTT. YEAR : 2002-03 M/S. GAURAV DISTRIBUTORS, VS. INCOME-TAX OFFICER , 2/89, KOTLA HOUSE, KHANDARI, 1(3), AGRA. AGRA. (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI A.K. SHARMA, JR. D.R. FOR ASSESSEE : SHRI NAVIN GARGH, ADVOCATE. DATE OF HEARING : 11.10.2011 DATE OF PRONOUNCEMENT : 11.10.2011 ORDER PER BENCH : THE DEPARTMENT HAS FILED THE PRESENT APPEAL AND A SSESSEE HAS FILED CROSS OBJECTION AGAINST THE ORDER DATED 08.07.2010 PASSED BY THE LE ARNED CIT(A)-I, AGRA. 2. AS REGARDS TO THE CROSS-OBJECTION, THE ASSESSEE HAS WITHDRAWN THE SAME AND AN ENDORSEMENT TO THIS EFFECT HAS ALSO BEEN MADE ON TH E GROUNDS OF CROSS OBJECTION. THEREFORE, THE CROSS OBJECTION FILED BY THE ASSESSEE STANDS DISMIS SED AS WITHDRAWN. ITA NO. 398/AGRA/2010 C.O. NO. 20/AGRA/2011 2 3. THE EFFECTIVE GROUNDS RAISED BY THE REVENUE IN I TS APPEAL READ AS UNDER : 1. THAT THE CIT(A)-II, AGRA HAS ERRED IN LAW IN DE LETING THE ADDITION OF RS.10,00,000/- (I.E., CREDIT ENTRY OF RS.10,00,000/ - BEING LOAN TAKEN FROM M/S. GANGA RAM GROUP OF CASES) MADE U/S. 68 OF I.T. ACT, 1961 ON ACCOUNT OF UNEXPLAINED CASH CREDITS WITHOUT APPRECIATING THE F ACTS DISCUSSED IN THE ASSESSMENT ORDER. IN FACT, THESE CASH CREDIT ENTRIE S REPRESENTED THE ASSESSEES OWN CASH INTRODUCED IN THE BUSINESS THROUGH GANGA RAM G ROUP OF CASES WHO HAVE ALREADY ADMITTED THAT THEY ARE ENGAGED IN BUSINESS OF PROVIDING ENTRIES AND EARNING INCOME THERE FROM. 2. THAT THE CIT(A)-II, AGRA HAS ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE OF RS.1,38,750/- OF INTEREST CLAIMED T O HAVE BEEN PAID TO THE ABOVE NAMED CREDITORS ON UNEXPLAINED CASH CREDITS. 3. THAT THE CIT(A)-II, AGRA HAS ERRED IN LAW AND ON FACTS IN OBSERVING THAT THE DEPOSITORS HAVE NEVER ADMITTED THAT THEY WERE ENGAG ED IN ENTRY BUSINESS IGNORING THE FACT THAT THE ASSESSMENTS OF THE DEPOSITORS HAV E BEEN COMPLETED HOLDING THAT THEY WERE ENGAGED IN ENTRY BUSINESS. THEY HAVE ADMI TTED THIS FACT AND NO APPEAL ORDER HAVE BEEN FILED BY THEM AGAINST THE ASSESSMEN T. 4. THAT THE ORDER OF THE CIT(APPEALS)-1, AGRA IS BA D IN LAW AND ON FACTS BECAUSE IN ALLOWING THE ASSESSEES APPEAL SHE HAS COMPLETEL Y IGNORED THE FACT THAT IT HAS VEHEMENTLY BEEN PROVED THAT THE AMOUNTS INTRODUCED AS CASH CREDITS WERE ASSESSEES OWN UNACCOUNTED MONEY ROUTED THROUGH THE LOAN ENTRIES. 4. THE FACTS ARE NOT DISPUTED BY BOTH THE PARTIES. THEREFORE, THERE IS NO NEED TO REPEAT THE SAME FOR THE SAKE OF REPETITION. 5. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ISSUE IN DISPUTE HAS ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY T HIS BENCH. TO SUPPORT HIS ARGUMENTS, THE LD. COUNSEL FOR THE ASSESSEE HAS FILED PAPER BOOK CONTA INING PAGES 1 TO 18. THE LD. COUNSEL HAS ALSO ATTACHED PHOTOCOPIES OF THE ORDER OF THIS BENCH AS WELL AS ORDER OF HONBLE HIGH COURT AND HE HAS REQUESTED THAT THE APPEAL FILED BY THE DEPARTME NT MAY BE DISMISSED. 6. ON THE CONTRARY, THE LEARNED DR RELIED ON THE OR DER OF THE ASSESSING OFFICER. ITA NO. 398/AGRA/2010 C.O. NO. 20/AGRA/2011 3 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORD AVAILABLE WITH US, ESPECIALLY THE ORDER PASSED BY THIS BENCH, I.E., IT A NO.262/AGRA/2006, INCOME-TAX OFFICER 1(1), AGRA VS. SHRI ADITYA AGARWAL, A.Y. 1998-99, IN WHIC H THIS BENCH HAS ADJUDICATED THE ISSUE IN DISPUTE AND DECIDED THE SAME IN FAVOUR OF THE ASSES SEE. THE HONBLE JURISDICTIONAL HIGH COURT HAS ALSO UPHELD THE ORDER OF THIS BENCH DATED 15.02 .2007 (SUPRA) IN APPEAL FILED BY THE DEPARTMENT ON 04.08.2010. THEREFORE, RESPECTFULLY F OLLOWING THE ORDER OF HONBLE ALLAHABAD HIGH COURT PASSED IN ITA NO. 524 OF 2007, CIT VS. A DITYA AGARWAL DATED 04.08.2010, THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY REVENUE AND C ROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11.10.2011. SD/- SD/- (B.C. MEENA) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 11 TH OCTOBER, 2011 *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE ASSISTANT REGISTRAR TRUE COPY ITA NO. 398/AGRA/2010 C.O. NO. 20/AGRA/2011 4 DOD : 11.10.2011 DOT : 11.10.2011 DOP : 11.10.2011 B.C. : 12.10.2011