M/s. Irfan Carpets, Srinagar V. The Deputy Commissioner of Income tax, Srinagar

CO 28/ASR/2010

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7128 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-05-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-11-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 22-09-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K BANSAL
• Assessee Lawyers: R L CHHANALIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.338(ASR)/2010 ASSESSMENT YEAR:2006-07 PAN: DY. COMMR. OF INCOME-TAX, VS. M/S. IRFAN CARPETS, CIRCLE 3, SRINAGAR. SRINAGAR. (APPELLANT) (RESPONDENT) C.O. NO.28(ASR)/20100 (ARISING OUT OF ITA NO.338(ASR)/2010) ASSESSMENT YEAR : 2006-07 M/S. IRFAN CARPETS, VS. DY. COMMR. OF INCOME TAX, SRINAGAR. CIRCLE 3, SRINAGAR. (APPELLANT) (RESPONDENT) DEPARTMENT BY: SH. R.L. CHHANALIA, DR RESPONDENT BY:SH. S.K. BANSAL, ADV. DATE OF HEARING :30/05/2012 DATE OF PRONOUNCEMENT:30/05/2012 ORDER PER BENCH: THE REVENUE HAS FILED THE PRESENT APPEAL AGAINST T HE IMPUGNED ORDER OF CIT(A), JAMMU, DATED 10.05.2010 FOR THE ASSESSME NT YEAR 2006-07. THE ASSESSEE HAS ALSO FILED C.O. 2 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) WAS JUSTIFIED IN LAW AND ON FACTS IN DELETING THE A DDITION OF RS.1,02,82,924/- MADE BY THE AO ON ACCOUNT OF CREDI TORS WITHOUT APPRECIATING THE FACTS OF THE CASE AND MATE RIAL BROUGHT ON RECORD BY THE AO. II. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE THE LD. CIT(A) WAS JUSTIFIED IN LAW AND ON FACTS, IN DELETI NG THE ADDITION WITHOUT APPRECIATING THAT THE AO HAD CONSI DERED THE ASPECT OF VERIFICATION LETTERS HAVING BEEN RECEIVED BACK WITH REMARKS NOT KNOWN/NOT RACED IN CASES OF SOME CRED ITORS. III. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) WAS JUSTIFIED IN LAW AND ON FACTS, IN DELETI NG THE ADDITION WITHOUT APPRECIATING THAT THE AO HAD BROUG HT ON RECORDS THE FACTS AND CIRCUMSTANCES WHICH PROVE THA T CREDITWORTHINESS OF THE CREDITORS WAS NOT ESTABLISH ED BY THE ASSESSEE AND ONUS OF PROVING GENUINENESS OF THESE C REDITORS WAS NOT DISCHARGED. IV. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE THE LD. CIT(A) WAS JUSTIFIED IN LAW AND ON FACTS, IN NOT AP PRECIATING THAT THE CREDITORS WERE NOT ABLE TO PROVE THE SATIS FACTORILY THEIR CREDITWORTHINESS AND FACTS SUCH AS ABSENCE OF PAN OR IT DETAILS, IGNORANCE REGARDING THEIR OWN BUSINESS LEA D TO THE ADDITION. V. APPELLANT CRAVES LEAVE TO AMEND OR ADD ANY ONE O R MORE GROUNDS OF APPEAL. SD/- (RAVI SARANGAL) COMMISSIONER OF INCOME TAX ( J & K) JAMMU. 3. IN C.O. NO.28(ASR)/2010, THE ASSESSEE HAS RAISED FOLLOWING GROUNDS: I. THAT THE APPEAL FILED BY THE DEPARTMENT FOR THE AY 2006-07 HAS NO LEGS TO STAND. II. THAT THE APPEAL FILED BY THE DEPARTMENT FOR THE A.Y. 2006-07 MAY KINDLY BE DISMISSED. 3 4. AT THE TIME OF HEARING, SH. S.K. BANSAL, ADVOCAT E, APPEARING FOR THE ASSESSEE STATED THAT THE CROSS OBJECTION IS ONLY SU PPORTIVE TO THE ORDER OF THE LD. CIT(A). 5. WE FIND THAT SH. RAVI SARANGAL, CIT ( J&K), JAMM U, HAS AUTHORIZED DCIT, CIRCLE 3, SRINAGAR, TO FILE AN APPEAL BEFORE THE I.T.A.T AMRITSAR BENCH AGAINST THE ORDER OF THE CIT(A), JAMMU, DATE D 10.05.2010, IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2006-0 7, BUT THE DCIT, CIRCLE 3, SRINAGAR, HAS NOT FILED THE PRESENT APPEAL. WE ALSO FOUND THAT THE LD. CIT (J&K), JAMMU HAS FILED THE PRESENT APPEAL BY RAISIN G VARIOUS GROUNDS OF APPEAL. THIS IS CONTRARY TO HIS OWN ORDER PASSED UN DER SECTION 253(2) OF THE INCOME TAX ACT, 1961. THE REGISTRY OF THE ITAT, AMR ITSAR BENCH, HAS ALSO ISSUED DEFECT MEMO TO THE DCIT CIRCLE 3, SRINAGAR O N 10/13.08.2010 TO RECTIFY THE DEFECT AND FILE THE GROUNDS OF APPEAL T AKEN BEFORE THE TRIBUNAL SIGNED BY THE A.O. IN ORIGINAL AND IN TRIPLICATE WI THIN 10 DAYS FROM THE RECEIPT OF THE SAID DEFECT MEMO BUT THE DEPARTMENT HAS NOT COMPLIED WITH THE SAME TILL DATE. THIS BENCH HAS ALSO POINTED OUT VIDE ITS ORDER DATED 17.04.2012 BY GIVING LAST OPPORTUNITY TO SH. LAXMAN SINGH, CIT(DR) TO RECTIFY THE SAID DEFECT BUT TILL DATE, THE DEPARTME NT HAS NOT RECTIFIED THE SAME. 6. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE, AS EXPLAINED ABOVE, WE ARE OF THE VIEW THAT THE REVENU E IS NOT INTERESTED TO 4 PROSECUTE THE MATTER IN DISPUTE, AS THE REVENUE HAS NOT RECTIFIED THE ABOVE SAID DEFECT. THEREFORE, WE ARE OF THE VIEW THAT NO USEFUL PURPOSE WILL BE SERVED TO ADJOURN THE MATTER AGAIN AND AGAIN, AS RE QUESTED BY SH. R.L. CHANNALIA, THE LD. DR. ACCORDINGLY, WE DISMISS THE APPEAL OF THE REVENUE WITH THE LIBERTY TO THE DEPARTMENT TO FILE AN APPL ICATION, IF SO ADVISED, FOR RECALLING OF THIS ORDER AFTER RECTIFYING THE DEFECT , IN ACCORDANCE WITH LAW. 7. AS REGARDS THE CROSS OBJECTION, WHICH IS SUPPORT IVE TO THE ORDER OF THE CIT(A), AS STATED BY THE LD. COUNSEL FOR THE ASSESS EE, IS ALSO DISMISSED. HOWEVER, IF THE REVENUE FILES AN APPLICATION FOR RE CALLING THIS ORDER, THEN THE C.O. WILL AUTOMATICALLY STAND REVIVED. 8. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE A S WELL AS C.O. OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30TH MAY, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30TH MAY, 2012 /SKR/ COPY OF THE ORDER IS FORWARDED TO : 1. THE ASSESSEE: M/S. IRFAN CARPETS, SRINAGAR. 2. THE DCIT, CIRCLE 3, SRINAGAR. 3. THE CIT(A), JAMMU. 4. THE CIT, JAMMU. 5. THE SR DR, ITAT, AMRITSAR.