Sh Raghunath Traders, Delhi V. DCIT, New Delhi

CO 208/DEL/2010

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 1207 (ITAT-DELHI)
• Duration Of Justice: 5 year(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Next Hearing Date: 07-07-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 03-08-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: K R MANJANI
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO ITA NO ITA NO ITA NO S SS S . .. . 2771/DEL/2010, 2772/DEL/2010, 2773/DEL/2010 & 2774/ DEL/2010 2771/DEL/2010, 2772/DEL/2010, 2773/DEL/2010 & 2774/ DEL/2010 2771/DEL/2010, 2772/DEL/2010, 2773/DEL/2010 & 2774/ DEL/2010 2771/DEL/2010, 2772/DEL/2010, 2773/DEL/2010 & 2774/ DEL/2010 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2000 2000 2000 2000 - -- - 01, 2001 01, 2001 01, 2001 01, 2001 - -- - 02 0202 02 , 2002 , 2002 , 2002 , 2002 - -- - 03 & 2006 03 & 2006 03 & 2006 03 & 2006 - -- - 07 0707 07 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, 17, 17, 17, JHANDEWALAN, JHANDEWALAN, JHANDEWALAN, JHANDEWALAN, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, 2046, KATRA TOBBACO, 2046, KATRA TOBBACO, 2046, KATRA TOBBACO, 2046, KATRA TOBBACO, KHARI BAOLI, KHARI BAOLI, KHARI BAOLI, KHARI BAOLI, DELHI DELHI DELHI DELHI 110 006. 110 006. 110 006. 110 006. PAN : AABFS5596C. PAN : AABFS5596C. PAN : AABFS5596C. PAN : AABFS5596C. (APPELLANT) (RESPONDENT) CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION CROSS OBJECTION NOS.207/DEL/2010 & 208/DEL/2010 NOS.207/DEL/2010 & 208/DEL/2010 NOS.207/DEL/2010 & 208/DEL/2010 NOS.207/DEL/2010 & 208/DEL/2010 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2000 2000 2000 2000 - -- - 01 & 2002 01 & 2002 01 & 2002 01 & 2002 - -- - 03 0303 03 SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, 2046, KATRA TOBBACO, 2046, KATRA TOBBACO, 2046, KATRA TOBBACO, 2046, KATRA TOBBACO, KHARI BAOLI, KHARI BAOLI, KHARI BAOLI, KHARI BAOLI, DELHI DELHI DELHI DELHI 110 006. 110 006. 110 006. 110 006. PAN : AABFS5596C. PAN : AABFS5596C. PAN : AABFS5596C. PAN : AABFS5596C. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, 17, 17, 17, JHANDEWALAN, JHANDEWALAN, JHANDEWALAN, JHANDEWALAN, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : NONE. ASSESSEE BY : SHRI K.R. MANJANI, ADVOCATE. DATE OF HEARING : 07.07.2015 07.07.2015 07.07.2015 07.07.2015 DATE OF PRONOUNCEMENT : 03.08.2015 03.08.2015 03.08.2015 03.08.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA, VP: PER G.C. GUPTA, VP: PER G.C. GUPTA, VP: PER G.C. GUPTA, VP: ITA NOS.2771 TO 2774/DEL/2010 ITA NOS.2771 TO 2774/DEL/2010 ITA NOS.2771 TO 2774/DEL/2010 ITA NOS.2771 TO 2774/DEL/2010 REV REV REV REVENUES APPEALS ENUES APPEALS ENUES APPEALS ENUES APPEALS (AY (AY (AY (AY 2000 2000 2000 2000- -- -01 TO 2002 01 TO 2002 01 TO 2002 01 TO 2002- -- -03 & 2006 03 & 2006 03 & 2006 03 & 2006- -- -07) 07) 07) 07): :: :- -- - THESE FOUR APPEALS BY THE REVENUE FOR THE ASSESSMENT YEA RS 2000-01 TO 2002-03 AND 2006-07 ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-II, NEW DELHI DATED 9 TH MARCH, 2010. ITA NOS.2771 TO 2774/D/2010 & C.O.NOS.207 & 208/D/2010 2 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE REVENUE. THE REQUEST OF THE DEPARTMENT THAT THE CONCERNED CIT -DR IS ON TRAINING AND NO CIT-DR IS AVAILABLE IS REJECTED BY THE BENCH A S NO REASONABLE CAUSE WAS SHOWN BY THE DEPARTMENT FOR NON-AVAILABILITY OF THE CIT-DR AND IT WAS ALSO NOT INTIMATED THAT WHEN THE DEPARTMEN T WOULD BE IN A POSITION TO MAKE THE ALTERNATIVE ARRANGEMENT TO REPR ESENT ITS CASE BEFORE THE TRIBUNAL. IN THESE CIRCUMSTANCES, WE ARE O F THE CONSIDERED VIEW THAT THERE BEING NO REASONABLE CAUSE FOR NOT AT TENDING THE HEARING ON BEHALF OF THE REVENUE BEFORE THE TRIBUNA L AND, IN VIEW OF THE FACT THAT THE APPEALS PERTAIN TO THE YEAR 2010, ALL THE FOUR APPEALS OF THE REVENUE ARE DISMISSED IN LIMINE . WHILE TAKING THIS VIEW, WE DERIVE SUPPORT FROM THE DECISION OF DELHI BENCH OF IT AT IN THE CASE OF CIT VS. MULTIPLAN INDIA (P.) LTD. [1991] 38 ITD 32 0 (DELHI). ASSESSEES CROSS OBJECTION NOS.207/DEL/2010 & 208/DEL/2 010 (AY ASSESSEES CROSS OBJECTION NOS.207/DEL/2010 & 208/DEL/2 010 (AY ASSESSEES CROSS OBJECTION NOS.207/DEL/2010 & 208/DEL/2 010 (AY ASSESSEES CROSS OBJECTION NOS.207/DEL/2010 & 208/DEL/2 010 (AY 2000 2000 2000 2000- -- -01 & 2002 01 & 2002 01 & 2002 01 & 2002- -- -03) : 03) : 03) : 03) :- -- - 3. THE GROUNDS OF THE CROSS-OBJECTION OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2000-01 ARE AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPEAL FILED BY THE DEPARTMENT IS NOT CORRECT BECAUSE THE SO CALLED NEW EVIDENCE WAS SENT BY LD.CIT(A) TO THE LD.A.O. AND HIS REPORT WAS DULY TAKEN. 2. APPEAL BY THE DEPARTMENT IS ALSO WRONG BECAUSE SIMILAR GROUNDS IN SOME OF THE YEARS HAVE BEEN ACCEPTE D BY THE DEPARTMENT. 3. LD.CIT(A) HAS ERRED ON FACTS AND LAW IN MAKING THE ADDITION OF RS.2,50,000/- IN RESPECT OF CASH CREDITS P LUS INTEREST THEREON EVEN THOUGH COMPLETE CONFIRMATIONS WERE FILED. THE CREDITORS ARE REGULAR ASSESSEE AND THE TRANSACTION IS THROUGH BANKING CHANNEL, ON WHICH ACC OUNT THERE IS NO DOUBT ABOUT THE GENUINENESS OF THE TRANSACT ION AND CAPACITY OF THE CREDITORS. ITA NOS.2771 TO 2774/D/2010 & C.O.NOS.207 & 208/D/2010 3 4. THE GROUNDS OF THE CROSS-OBJECTION OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2002-03 ARE AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE APPEAL FILED BY THE DEPARTMENT IS NOT CORRECT BECAUSE THE SO CALLED NEW EVIDENCE WAS SENT BY LD.CIT(A) TO THE LD . A.O. AND HIS REPORT WAS DULY TAKEN. 2. APPEAL BY THE DEPARTMENT IS ALSO WRONG BECAUSE SIMILAR GROUNDS IN SOME OF THE YEARS HAVE BEEN ACCEPTE D BY THE DEPARTMENT. 3. LD.CIT(A) HAS ERRED ON FACTS AND LAW IN MAKING THE ADDITION OF RS.1,00,000/- IN RESPECT OF CASH CREDITS P LUS INTEREST THEREON EVEN THOUGH COMPLETE CONFIRMATIONS WERE FILED. THE CREDITORS ARE REGULAR ASSESSEE AND THE TRANSACTION IS THROUGH BANKING CHANNEL, ON WHICH ACC OUNT THERE IS NO DOUBT ABOUT THE GENUINENESS OF THE TRANSACT ION AND CAPACITY OF THE CREDITORS. 5. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT TH E ADDITION ON ACCOUNT OF CASH CREDIT WAS WRONGLY MADE ALTHOUGH COMPLETE CONFIRMATIONS OF THE CREDITORS WERE FILED BEFORE THE ASSESSING OFFICER. HE SUBMITTED THAT THE CREDITORS WERE REGULAR INCOME T AX ASSESSEES AND THE TRANSACTIONS WERE THROUGH BANKING CHANNELS AND THE GENUINENESS OF THE TRANSACTIONS AND THE CAPACITY OF THE CREDITOR S COULD NOT BE DOUBTED BY THE REVENUE. HE SUBMITTED THAT THE REASON OF THE DEPARTMENT THAT THE ASSESSEE HAS NOT INTIMATED THE NEW A DDRESS OF THE CREDIT PARTIES, WAS NOT SUSTAINABLE FOR THE REASON T HAT THE NEW ADDRESSES OF THE CREDITORS WERE NEVER ASKED FOR BY THE R ESPONDENT AND ALL OTHER EVIDENCES WERE FILED BY THE ASSESSEE BEFORE TH E ASSESSING OFFICER. HE SUBMITTED THAT THE ASSESSEE BE ALLOWED ONE MORE OPPORTUNITY TO SUBMIT THE NEW ADDRESS. 6. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNED CO UNSEL FOR THE ASSESSEE AND HAVE PERUSED THE ORDER OF THE ASSESSING OFF ICER AND ITA NOS.2771 TO 2774/D/2010 & C.O.NOS.207 & 208/D/2010 4 THE CIT(A). WE FIND THAT THE ASSESSEE HAS SUBMITTED THE EVIDENCE IN THE FORM OF THE CONFIRMATION FROM THE CREDITORS AND THE TRANSACTION OF CASH CREDIT WAS THROUGH BANKING CHANNELS AND THE CREDI TORS WERE EXISTING INCOME TAX ASSESSEES. WITH REGARD TO ISSUE OF NOT INTIMATING THE NEW ADDRESSES OF THE CREDITORS BY THE ASSESSEE, THE CL AIM OF THE ASSESSEE IS THAT THE NEW ADDRESSES WERE NEVER ASKED FOR BY T HE DEPARTMENT. IN THESE FACTS, WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE, THE ASSESSEE BE ALLOWED ONE MORE OPPORTUNITY TO INTIMATE THE NEW COMPLETE ADDRESS OF THE CREDITORS BEFORE THE ASSESSING OFFICER AND THE ASSESSING OFFICER IS DIRECTED TO EVALUATE THE EVIDEN CE FILED BY THE ASSESSEE IN ACCORDANCE WITH LAW SO AS TO REACH JUST AND V ALID CONCLUSION. THE ASSESSEE SHALL BE AT LIBERTY TO FILE EV IDENCE IN SUPPORT OF ITS CASE BEFORE THE ASSESSING OFFICER AND ACCORDINGLY, THE ISSUE OF ADDITION OF CASH CREDIT RAISED IN THE CROSS-OBJECTION S OF THE ASSESSEE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER WITH THE D IRECTION TO ASCERTAIN THE REAL TRUTH REGARDING THE GENUINENESS OF THE TRANSACTION OF CASH CREDIT AND TO FRAME DE NOVO ORDER ON THIS ISSUE AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE D IRECT ACCORDINGLY. 7. IN THE RESULT, ALL THE FOUR APPEALS OF THE REVENUE ARE DISMISSED AND THE TWO CROSS-OBJECTIONS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 3 RD AUGUST, 2015. SD/- SD/- (J. SUDHAKAR REDDY) (J. SUDHAKAR REDDY) (J. SUDHAKAR REDDY) (J. SUDHAKAR REDDY) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER VICE PR VICE PR VICE PR VICE PR ESIDENT ESIDENT ESIDENT ESIDENT VK. ITA NOS.2771 TO 2774/D/2010 & C.O.NOS.207 & 208/D/2010 5 COPY FORWARDED TO: - 1. REVENUE : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, JHANDEWALAN, NEW DELHI. 17, JHANDEWALAN, NEW DELHI. 17, JHANDEWALAN, NEW DELHI. 17, JHANDEWALAN, NEW DELHI. 2. ASSESSEE : SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, SRI RAGHUNATH TRADERS, 2046, KATRA TOBBACO, KHARI BAOLI, 2046, KATRA TOBBACO, KHARI BAOLI, 2046, KATRA TOBBACO, KHARI BAOLI, 2046, KATRA TOBBACO, KHARI BAOLI, DELHI DELHI DELHI DELHI 110 006. 110 006. 110 006. 110 006. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR