Sh. Ashok Kumar, Aligarh V. I.T.O., Ward-1(4), Aligarh

CO 26/AGR/2013

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 0635 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 24-07-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 06-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: BELU SINHA
• Assessee Lawyers: K K JAIN
• Section: 68

Judgement Text

I.T.A. NO. 225 & C.O. NO. 26/AGRA/2013 ASSESSMENT YEAR:2008-09 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE: SHRI G.C. GUPTA, VICE-PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.225/AGRA/2013 ASSESSMENT YEAR: 2008-09 INCOME-TAX OFFICER, VS. SHRI ASHOK KUMAR , WARD 1(4), ALIGARH. MANGAL VIHAR COLONY, ALIGARH. [PAN : AWXPK 2831 L] C.O. NO. 26/AGRA/2013 (IN ITA NO.225/AGRA/2013) ASSESSMENT YEAR: 2008-09 SHRI ASHOK KUMAR , VS. INCOME-TAX OFFICER, MANGAL VIHAR COLONY, WARD 1(4), ALIGARH. ALIGARH. REVENUE BY : SMT. BELU SINHA, SR. D.R. ASSESSEE BY : SHRI K.K. JAIN, ADVOCATE DATE OF HEARING : 24.07.2015 DATE OF PRONOUNCEMENT : 24.07.2015 O R D E R PER G.C. GUPTA, V.P. : THIS APPEAL BY THE REVENUE AND CROSS-OBJECTION BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2008-09, ARE DIREC TED AGAINST THE ORDER OF THE CIT(A). ITA NO. 225/AGRA/2013 (REVENUES APPEAL): 2. THE ONLY GROUND OF APPEAL OF THE REVENUE IS AS U NDER : I.T.A. NO. 225 & C.O. NO. 26/AGRA/2013 ASSESSMENT YEAR:2008-09 PAGE 2 OF 4 1. THE LD CIT(A) HAS ERRED IN LAW AND ON FACTS IN REDUCING THE ADDITION OF RS.1,82,52,460/- MADE BY THE AO ON ACCOUNT OF UNVERIFIABLE CREDITORS U/S. 68 OF THE IT ACT, 19 61 TO RS.1,25,000/- IGNORING THE FACT THAT SUFFICIENT OPP ORTUNITIES WERE PROVIDED TO THE ASSESSEE AS WELL AS SUNDRY CRE DITORS BUT THEY FAILED TO SUBSTANTIATE THE GENUINENESS AND CREDITWORTHINESS OF CREDITORS. 3. THE LEARNED DR SUBMITTED THAT THE ASSESSEES TUR NOVER DURING THE YEAR WAS VERY LESS AT RS.10 LACS AND ODD AND TH EREFORE, THE TRADE CREDITORS CLAIMED BY THE ASSESSEE AT RS.1,82, 52,460/- ARE FAR FROM REALITY. SHE SUBMITTED THAT THE IDENTITY OF TH E CREDITORS WAS NOT PROVED AND ONUS WAS ON THE ASSESSEE TO PROVE IDENTI TY AND CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS O F THE TRANSACTIONS. SHE RELIED ON THE ORDER OF THE AO. 4. THE LEARNED COUNSEL FOR THE ASSESSEE OPPOSED THE SUBMISSIONS OF THE LEARNED DR. HE SUBMITTED THAT TH E ASSESSEE IS IN THE BUSINESS OF IRON GOODS AND SCRAP. THIS IS TH E FIRST YEAR OF THE BUSINESS OF THE ASSESSEE AND THEREFORE, THE ASSESSE E COULD NOT ACHIEVE MUCH TURNOVER AND THE GOODS ARE REFLECTED I N THE CLOSING STOCK OF THE ASSESSEE. HE SUBMITTED THAT IN THE IMM EDIATELY SUCCEEDING ASSESSMENT YEAR, THE ASSESSEE HAS ACHIEV ED TURNOVER OF RS.7.00 CRORES AND ODD AND THERE IS NO BASIS TO SUSPECT THAT THE TRADE CREDITORS OF THE ASSESSEE WERE NOT GENUINE. H E SUBMITTED THAT THE ASSESSEE HAS FILED ALL THE EVIDENCES WITH REGARD TO IDENTITY AND CREDITWORTHINESS OF THE SUNDRY CREDITORS AND TH E GENUINENESS OF THE TRANSACTIONS. HE RELIED ON THE ORDER OF THE CIT(A). I.T.A. NO. 225 & C.O. NO. 26/AGRA/2013 ASSESSMENT YEAR:2008-09 PAGE 3 OF 4 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE ORDERS OF THE AO AND CIT(A) AND ALSO THE DOCUME NTS FILED IN THE COMPILATION BY THE ASSESSEE. WE FIND THAT MEREL Y BECAUSE THE TURNOVER OF THE ASSESSEE WAS VERY LESS AT RS.10 LAC S AND ODD, IT COULD NOT BE CONCLUDED THAT THE TRADE CREDITORS WER E NOT GENUINE. THE ASSESSEE WAS IN THE BUSINESS OF PURCHASE AND SA LE OF IRON GOODS AND SCRAP AND THIS BEING THE FIRST YEAR OF BU SINESS OF THE ASSESSEE, THE ASSESSEE HAS MADE PURCHASE OF RS.1.77 CRORES DURING THE RELEVANT PERIOD AND WAS ABLE TO ACHIEVE THE SALE FIGURE OF RS.7.00 CRORES AND ODD IN THE IMMEDIATELY SUCCEE DING ASSESSMENT YEAR. HOWEVER, IN REPLY TO A SPECIFIC QU ERY FROM THE BENCH THAT HOW THE FIGURE OF TRADE CREDITORS AT RS. 1.82 CRORES EXCEEDS THE TOTAL PURCHASE OF GOODS MADE BY THE ASS ESSEE DURING THE RELEVANT PERIOD AT RS.1.77 CRORES, THE LD. COUN SEL FOR THE ASSESSEE COULD NOT GIVE ANY SATISFACTORY REPLY TO T HE QUERY RAISED BY THE BENCH. IN THESE FACTS OF THE CASE, WE CONSID ER THAT IN THE INTEREST OF JUSTICE, IT SHALL BE REASONABLE TO REST ORE THE ISSUE RAISED BY THE REVENUE IN THE GROUND OF APPEAL TO THE FILE OF THE AO WITH DIRECTION TO DECIDE THE SAME AFRESH IN ACCORDANCE W ITH LAW AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE A SSESSEE. THE ASSESSEE SHALL BE AT LIBERTY TO LEAD ANY EVIDENCE I N SUPPORT OF ITS CASE TO PROVE THE IDENTITY AND CREDITWORTHINESS OF THE TRADE CREDITORS AND ALSO THE GENUINENESS OF THE TRANSACTI ONS. THE ASSESSEE IS DIRECTED TO EXPLAIN TO THE AO HOW THE F IGURE OF TRADE CREDITORS AT RS.1.82 CROES COULD EXCEED THE TOTAL P URCHASES MADE BY THE ASSESSEE WHICH ARE STATED TO BE AT RS.1.77 C RORES DURING THE RELEVANT YEAR. WE DIRECT ACCORDINGLY. I.T.A. NO. 225 & C.O. NO. 26/AGRA/2013 ASSESSMENT YEAR:2008-09 PAGE 4 OF 4 C.O. NO. 26/AGRA/2013 :(BY ASSESSE): 6. BOTH THE PARTIES SUBMITTED THAT IN VIEW OF THE D ECISION OF THE TRIBUNAL OF RESTORING THE ISSUE IN GROUND OF APPEAL OF THE REVENUE TO THE FILE OF THE AO, THE PRESENT CROSS-OBJECTION OF THE ASSESSEE HAS BECOME INFRUCTUOUS AND IS DISMISSED ACCORDINGLY . 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES AND THE CROSS-OBJECTION OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 24.07.2015. SD/- SD/- INTURI RAMA RAO G.C. GUPTA (ACCOUNTANT MEMBER) (VICE- PRESIDEN T) DATED: AGRA: 24 TH JULY, 2015 *AKS/- COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE(6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA