COMMISSIONER OF INCOME TAX RANGE-1 BATHINDA V. MUNISH KUMAR BANSAL

ITA/247/2014

AI Insights

The case revolves around a dispute concerning the alleged suppression of stock by Shri Munish Kumar Bansal, which was claimed to be worth Rs. 1.51 crores. The Commissioner of Income Tax (CIT) challenged the Tribunal's decision, which had favored Bansal, against the CIT's earlier ruling. The CIT argued that the Tribunal erred in accepting Bansal's rebuttal to the Assessing Officer's findings and in considering documents not presented at the initial assessment stage. The High Court of Punjab and Haryana examined whether the Tribunal's findings were perverse and whether the additional documents could be considered at the appellate stage.

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 702377 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 13-07-2015
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: RAVISHANKAR
• Assessee Lawyers: G S HOODA
• Keywords: Appeal; Assessment; Income Tax; Tribunal; Stock Suppression

Judgement Text

"ITA No. 247 of 2014 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 247 of 2014 Date of Decision:- 13.07.2015 Commissiner of Income Tax Range-I, Bathinda ......Petitioner(s) vs. Shri Munish Kumar Bansal ......Respondent(s) CORAM:- HON'BLE MR. JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE G.S.SANDHAWALIA Present:- Mr. G.S. Hooda, Advocate, for the appellant. Mr. Ravi Shankar, Advocate, for the respondent. S.J. VAZIFDAR, A.C.J. (Oral) This is an appeal against the order of the Tribunal allowing the respondent's appeal against the order of the Commissioner of Income Tax (Appeals) upholding the addition of about `1.51 crores to the respondent's income. The following questions are sought to be raised:- “i) Whether in the facts and circumstances of the case, is the Hon'ble ITAT correct in holding that the asseessee has sufficiently rebutted the finding of the Assessing Officer that the assessee has suppressed its stock worth Rs.1,51,67,000/- from appearing in his books of account and thereby his income by that much amount? ii) Whether the reconcillation chart not furnished before the AO can be produced at the appellate stage? SHIVANI GUPTA 2015.07.15 11:00 I attest to the accuracy and integrity of this document Chandigarh ITA No. 247 of 2014 2 iii) Whether the Hon'ble ITAT Amritsar has erred in relying upon the additional document?” The respondents contended that the closing stock as on 31.03.2009 was only `17,50,000/-. The assessing officer, however, upon taking up the matter for scrutiny, found that the closing stock as on 31.03.2009 was actually `169.17 lacs and not `17,50,000/-. This was on the basis of the documents furnished by the respondent to avail a loan from the bank. According to the Assessing Officer, the documents disclosed the closing stock as on 31.03.2009 to be about `169 lacs. The question, therefore, is whether the closing stock as on 31.03.2009 was `17.50 lacs or `169 lacs. This is essentially a question of fact. It involves an appreciation of the evidence on record. The question is whether the finding of the Tribunal is perverse or not. The assessee's case is that the stock declared before the bank of `169.17 lacs was as on 30.03.2009 and that was for the purpose of rasing a loan. The Tribunal also found that the assessee had submitted a stock statement to the bank as on 30.03.2009. The bank officer who was questioned by the Assessing Officer stated that the loan of `100 lacs was disbursed on 30.03.2009 on the basis of the inventory as on that day. He further stated that the inventory of stock was physically verified. On 31.03.2009, `166 lacs was booked as sales. The Tribunal has expressly noted that the sales were not doubted by the authorities and in fact had been accepted. As rightly pointed out by the respondents, had it not been so, the respondent's income itself would have reduced to that extent. In the circumstances, we are unable to say that the finding of SHIVANI GUPTA 2015.07.15 11:00 I attest to the accuracy and integrity of this document Chandigarh ITA No. 247 of 2014 3 the Tribunal is perverse or totally unsustainable. The appeal is, therefore, dismissed. (S.J. VAZIFDAR) ACTING CHIEF JUSTICE (G.S. SANDHAWALIA) JUDGE 13.07.2015 shivani SHIVANI GUPTA 2015.07.15 11:00 I attest to the accuracy and integrity of this document Chandigarh "