M/s. Global Coal and Mining Pvt. Ltd., New Delhi V. ACIT, New Delhi

CO 356/DEL/2016

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3459 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 01-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 06-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES B: DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA.NO.5588/DEL./2016 ASSESSMENT YEAR 2012-2013 THE ACIT, CENTRAL CIRCLE - 17, ROOM NO.103, HALL NO.1, 1 ST FLOOR, ARA CENTRE, E-2, JHANDEWALAN.NEW DELHI. VS., M/S. GLOBAL COAL AND MINING PVT. LTD., 18, RAO TULA RAM MARG, VASANT ENCLAVE, NEW DELHI 110 015. PAN AABCG0215F (APPELLANT) (RESPONDENT) C.O.NO.356/DEL./2016 ARISING OUT OF ITA.NO.5588/DEL./2016 ASSESSMENT YEAR 2012-2013 M/S. GLOBAL COAL AND MINING PVT. LTD., 18, RAO TULA RAM MARG, VASANT ENCLAVE, NEW DELHI 110 015. PAN AABCG0215F VS., THE ACIT, CENTRAL CIRCLE - 17, ROOM NO.103, HALL NO.1, 1 ST FLOOR, ARA CENTRE, E-2, JHANDEWALAN.NEW DELHI. (CROSS OBJECTOR) (RESPONDENT) FOR REVENUE : MS. RACHNA SINGH, CIT - D.R. FOR CROSS-OBJECTOR : SHRI SAJJAN KUMAR TULSIYAN, ADVOCATE MS. NISHA RACHH, C.A., SHRI KARAN KUMAR, C.A. 2 ITA.NO.5588/DEL./2016 & CO.NO.356/DEL./2016 M/S. GLOBAL COAL AND MINING PVT. LTD., NEW DELHI. DATE OF HEARING : 07.12.2017 DATE OF PRONOUNCEMENT : 0 1 .01.2018 ORDER PER BHAVNESH SAINI, J.M. THE DEPARTMENTAL APPEAL AS WELL AS CROSS OBJECTIO N BY ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-27, NEW DELHI, DATED 8 TH AUGUST, 2016, FOR THE A.Y. 2012-2013. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT A SEARC H AND SEIZURE OPERATION AND SURVEY OPERATION UNDER SECTION 132/13 3A OF THE I.T. ACT WERE CONDUCTED ON 12 TH APRIL, 2012 IN THE CASE OF THE ASSESSEE ALONG WITH OTHER CASES OF ARYAN SAINIK GROUP OF CAS ES AT VARIOUS RESIDENTIAL AND BUSINESS PREMISES. THE A.O. ISSUED NOTICE UNDER SECTION 153A OF THE I.T. ACT AND ASSESSEE IN RESPON SE THERETO, FILED RETURN OF INCOME AT RS.58,29,45,154 ON 9 TH JUNE, 2014. THE A.O. NOTED THAT DURING THE COURSE OF SEARCH PROCEEDINGS, ANNEXURE-AA1OF PARTY B-1 WAS SEIZED FROM THE OFFICE PREMISES OF M/ S. ACB INDIA LIMITED, GURGAON, PAGE-1 OF THIS ANNEXURE PERTAINS TO THE ASSESSEE- COMPANY WHEREIN THE ASSESSEE-COMPANY AND THE CONTEN TS OF THE SEIZED PAPER INDICATES THAT THERE WAS AN ESTIMATED PROFIT FOR THE YEAR 3 ITA.NO.5588/DEL./2016 & CO.NO.356/DEL./2016 M/S. GLOBAL COAL AND MINING PVT. LTD., NEW DELHI. UNDER APPEAL ENDED 31 ST MARCH, 2012 AT RS.61 CRORES AND THE ASSESSEE REDUCED EXCESS PROFIT OF RS.13 CRORES AND PROFIT PLAN AS PER ADVANCE TAX IS RS.48 CRORES. THE A.O. AFTER CONSIDE RING THE EXPLANATION OF ASSESSEE MADE ADDITION OF RS.13 CROR ES ON ACCOUNT OF REDUCTION IN THE PROFIT. 3. THE ASSESSEE FILED WRITTEN SUBMISSIONS BEFORE T HE LD. CIT(A) IN WHICH IT WAS BRIEFLY EXPLAINED THAT A.O. FAILED TO NOTE THAT SEIZED PAPER WAS NOT FOUND FROM THE PREMISES OF THE ASSESSEE AND THAT THE NOTE CONTAINED THE PROPOSED ACTION/PLAN WH ICH WAS NEVER IMPLEMENTED BY THE ASSESSEE-COMPANY. THE FACT OF TH E ASSESSEES- COMPANY CASE IS THAT ACTUAL PROFIT WHICH AROSE TO T HE ASSESSEE- COMPANY WERE RS.56.84 CRORES, A COPY OF THE AUDITED ACCOUNTS WERE FILED. THERE IS NO EVIDENCE OF REDUCTION OF THE PRO FIT BECAUSE ASSESSEE HAD ALREADY FILED RETURN ON MORE INCOME AS COMPARED TO THE PRECEDING A.Y. 2011-2012 ASSESSEE HAS SHOWN 44% INC REASE IN THE PROFIT. LD. CIT(A) CONSIDERING THE EXPLANATION OF T HE ASSESSEE IN THE LIGHT OF SEIZED PAPER, DELETED THE ADDITION. HIS FI NDINGS IN PARAS 7.3 IS REPRODUCED AS UNDER. 4 ITA.NO.5588/DEL./2016 & CO.NO.356/DEL./2016 M/S. GLOBAL COAL AND MINING PVT. LTD., NEW DELHI. 7.3. FINDING I HAVE PERUSED THE MATERIAL ON RECORD, THE ASSESSME NT RECORDS AND THE SUBMISSIONS MADE BY THE APPELLANT. THE BASI S OF ADDITION BY THE AO IS A NOTE WHICH PLANS FOR REDUCT ION OF PROFITS. ON THE OTHER HAND, THE APPELLANT HAS CONTENDED THAT SUCH NOTE WAS NOT ACTED UPON AND THE PROFITS WERE NOT REDUCED . IN SUPPORT OF ITS CONTENTION, THE APPELLANT ALSO RE FERRED TO A SUBMISSION MADE BEFORE THE AO DATED 10.03.2016 WHER EIN SUCH FACTS WERE COMMUNICATED TO THE AO. THE AO HAS ALLEG ED THAT THE COMPUTATION OF INCOME OF THE APPELLANT COMPANY DOES NOT REFLECT A TRANSACTION SHOWING INCREASE IN PROFITS BY RS.13 CRORES. IF THE APPROACH OF THE AO WAS TO BE ADOPTED, THEN CONVERSE LY SPEAKING, THE COMPUTATION OF INCOME OR BOOKS OF ACCOUNTS OF T HE APPELLANT COMPANY ALSO DO NOT SHOW ANY TRANSACTION REDUCING P ROFITS BY RS.13 CRORES. IT IS THE CLAIM OF THE APPELLANT THAT THE NOTE REFE RRED TO BY THE AO WAS NEVER ACTED UPON AND THE APPELLANT ULTIMATELY D ISCLOSED ACTUAL PROFITS OF RS. 56.84 CRORES DURING THE YEAR. IN THE ABSENCE OF ANY CONTRARY MATERIAL BROUGHT ON RECORD BY THE A O TO PROVE 5 ITA.NO.5588/DEL./2016 & CO.NO.356/DEL./2016 M/S. GLOBAL COAL AND MINING PVT. LTD., NEW DELHI. THAT SUCH PROFITS WERE ACTUALLY REDUCED, THE ADDITI ON OF RS.13,00,00,000 STANDS DELETED. IN EFFECT, GROUND NO. 7 STANDS ALLOWED AND ADDITION OF RS.13,00,00,000 STANDS DELETED. 4. AFTER CONSIDERING THE RIVAL CONTENTIONS, WE DO NOT FIND ANY MERIT IN THIS GROUND OF APPEAL OF THE REVENUE. THE A.O. MADE THE ADDITION OF RS.13 CRORES ON THE BASIS OF THE SEIZED PAPER FOUND FROM M/S ACB INDIA LTD., GURGAON, ACCORDING TO WHICH, TH E ASSESSEE PROPOSED TO REDUCE THE PROFIT OF RS.13 CRORES IN AS SESSMENT YEAR UNDER APPEAL. THE ASSESSEE HAS HOWEVER, EXPLAINED T HAT ASSESSEE HAS SHOWN MORE PROFIT IN ASSESSMENT YEAR UNDER APPEAL A ND AS COMPARED TO THE EARLIER YEAR, 44% WAS EXCESS PROFIT DECLARED IN ASSESSMENT YEAR UNDER APPEAL. THE ASSESSEE ULTIMATELY FILED THE RET URN OF INCOME AT RS.58.29 CRORES WHICH HAS BEEN ACCEPTED BY THE A.O. THEREFORE, THERE IS NO CASE OF REDUCTION OF THE PROFIT. NO EVIDENCE HAS BEEN BROUGHT ON RECORD IF ASSESSEE MADE ANY ATTEMPT TO REDUCE PROFI T IN THE BOOKS OF ACCOUNT. IN VIEW OF THE ABOVE, WHEN ASSESSEE DEC LARED MORE PROFIT IN ASSESSMENT YEAR UNDER APPEAL, THERE WERE NO JUST IFICATION FOR THE A.O. TO MAKE THE ADDITION. THE LD. CIT(A) CORRECTLY DELETED THE 6 ITA.NO.5588/DEL./2016 & CO.NO.356/DEL./2016 M/S. GLOBAL COAL AND MINING PVT. LTD., NEW DELHI. ADDITION. THE DEPARTMENTAL APPEAL FAILS AND IS DISM ISSED. THE CROSS OBJECTION IS FILED IN SUPPORT OF THE ORDER OF THE L D. CIT(A). THE SAME IS THEREFORE, DISMISSED. 5. IN THE RESULT, APPEAL OF THE DEPARTMENT AS WELL AS CROSS OBJECTION OF THE ASSESSEE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (PRASHANT MAHARISHI) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 1 ST JANUARY, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT B BENCH 6. GUARD FILE //BY ORDER// ASST. REGISTRAR : ITAT : DELHI BENCHES : DELHI.