M/S. BAJRANG CONVEYORS, BILASPUR(CG) V. THE ITO, WARD- 2(1), BILASPUR(CG)

ITA 1/BIL/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8982 (ITAT-RAIPUR)
• Duration Of Justice: 4 year(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P CHAUDHARY
• Assessee Lawyers: G S AGRAWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 01/RPR/2014 ASSESSMENT YEAR : 2009-2010 M/S. BAJRANG CONVEYORS, 28, SECTOR-C, INDUSTRIAL ESTAE, SIRGITTI, BILASPUR VS. THE INCOME TAX OFFICER, - 2(1), MAHIMA COMPLEX, VYAPAR VIHAR, BILASOPUR PAN/GIR NO.AAFFB 2255 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI G.S.AGRAWAL, AR REVENUE BY : SHRI O.P.CHAUDHARY, DR DATE OF HEARING : 11/01/ 2018 DATE OF PRONOUNCEMENT : 15 /01/ 2018 O R D E R PER PAVAN KUMAR GADALE, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDE R OF THE CIT(A)- BILASPUR, DATED20.8.2013 FOR THE ASSESSMENT YEAR 2009 -2010. 2. THE FIRST ISSUE RELATES TO DISALLOWANCE OF RS.27,49,190 /- BY THE LOWER AUTHORITIES TREATING THE SAME AS ADVANCE RECEIVED FOR SU PPLY OF GOODS AS BOGUS TRADING LIABILITY. 3. THE RELEVANT FACTS ARE LIKE THIS. THE ASSESSEE DERI VES INCOME FROM JOB WORKS AND MANUFACTURING OF CONVEYOR ROLLERS, IDLERS AND SYSTEM. THE 2 ITA NO. 01/RPR/2014 ASSESSMENT YEAR : 2009-2010 ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS SHOWN GROSS PROF IT @ 8.94% AND NET PROFIT @ 1.33% ON A TOTAL TURNOVER OF RS.1,4 2,69,228/- AFTER GIVING INTEREST & REMUNERATION TO PARTNERS. THE ASSESSEE HAS MAI NTAINED ITS BOOKS OF ACCOUNT ON MERCANTILE SYSTEM. THE ASSESSING OFFICER NOTICE D THAT AN ADVANCE OF RS.27,49,796/- WAS SHOWN AS LIABILITY RECEIVED BY THE ASSESSEE FROM M/S. ADITYA RENEWABLE RESOURCES. ON PERUSAL OF ACCOU NT OF THE PARTY IN THE BOOKS OF THE ASSESSEE, IT WAS FOUND THAT RS.27,49,796/ - HAS BEEN ACCUMULATED BY RECEIVING FOUR CHEQUES ON DIFFERENT DATE S. ON ENQUIRY, THE ASSESSING OFFICER GATHERED THAT THERE ARE MISMATCH IN THE ACCOUNT. HE FURTHER FOUND THAT M/S. ADITYA RENEWABLE RESOURCES USED TO PURCHASE FINISHED GOODS FROM IT AND THE PARTY BOOKED THE SUPP LIED GOODS AS PURCHASE WHEREAS THE ASSESSEE FIRM HAS BOOKED THE SAME AS ADVANCE. THE ASSESSEE EXPLAINED THAT THE PARTY PURCHASED THE GOODS FOR A PAR TICULAR PROJECT AND THE WHOLE PROJECT MATERIAL WAS NOT SENT AT A TIME BUT SENT BY FOUR CONSIGNMENTS AND, ACCORDINGLY, WHENEVER THE WHOLE SEGMENT OF PROJECT ITEMS WERE SENT TO THE NAMED PARTY, THEN WHOLE REALIZATION VALUE OF RS. 38,38,543/- DATED 31.10.2009 HAD BEEN ACCOUNTED FOR IN THE NEXT ASSESSMENT YEAR. THE ABOVE EXPLANATION OF THE ASSESSEE WAS NOT CONVINCED TO THE ASSESSING OFFICER, WHO OBSERVED THAT THE ASSESSEE HAD CONVERTED REVENUE RECEIPT O F RS.27,49,,190/- AS AN ADVANCE AND SHOWED IT AS LIABILITY IN THE BALANCE SHEET, WHEREAS THE LIABILITY DOES NOT EXIST. THEREFORE , HE TREATED THE AMOUNT 3 ITA NO. 01/RPR/2014 ASSESSMENT YEAR : 2009-2010 AS BOGUS LIABILITY AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE U/S.68 OF THE ACT. 4. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. AT THE TIME OF HEARING, LD A.R. SUBMITTED THAT TH E ADDITION MADE BY THE ASSESSING OFFICER WITH RESPECT TO TRANSACTION OF RS.27,49,190 /- HAS BEEN CONSIDERED AND THE INVOICE WAS RAISED IN THE FINANCIAL Y EAR 2009-2010 RELEVANT TO ASSESSMENT YEAR 2010-2011. LD A.R. SUBMITT ED THE PAPER BOOK DISCLOSING COPY OF INVOICE AND THE CALCULATION OF THE STOCK . 6. LD D.R. RELIED ON THE ORDERS OF LOWER AUTHORITIES. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE OR DERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE UN DISPUTED FACTS OF THE CASE ARE THAT AN ADVANCE OF RS.27,49,796/- WAS SHOWN AS LI ABILITY RECEIVED BY THE ASSESSEE FROM M/S. ADITYA RENEWABLE RESOURCES. ON P ERUSAL OF ACCOUNT OF THE PARTY IN THE BOOKS OF THE ASSESSEE, IT WAS F OUND THAT RS.27,49,796/- HAS BEEN ACCUMULATED BY RECEIVING FOUR CHE QUES ON DIFFERENT DATES. BEFORE US, LD A.R. SUBMITTED THAT THE ADDITIO N MADE BY THE ASSESSING OFFICER WITH RESPECT TO TRANSACTION OF RS.27,49,190/- HAS BEEN CONSIDERED AND THE INVOICE WAS RAISED IN THE FINANCIAL YEAR 2009-2 010 RELEVANT TO ASSESSMENT YEAR 2010-2011. TO SUBSTANTIATE, LD A.R. SUBMI TTED THE PAPER BOOK DISCLOSING COPY OF INVOICE AND THE CALCULATION OF T HE STOCK WITH 4 ITA NO. 01/RPR/2014 ASSESSMENT YEAR : 2009-2010 DOCUMENTS. WE ARE OF THE CONSIDERED VIEW THAT THE ASSE SSEE SHOULD BE PROVIDED AN OPPORTUNITY TO EXPLAIN THE DETAILS ALONG WITH STATEMENTS FILED BEFORE US AND THE ASSESSING OFFICER HAS TO VERIFY WHETHER THE ASSESSEE HAS RAISED SALES BILLS IN THE ASSESSMENT YEAR 2010-2011 AND PA SS THE ORDER ON MERITS. THE ASSESSING OFFICER IS DIRECTED TO AFFORD PROP ER OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE ADJUDICATING THE ISSUE AFR ESH. 8. THE NEXT ISSUE RELATES TO ADDITION OF RS.8,60,783/- AS SUPPRESSED SALES. 9. LD A.R. OF THE ASSESSEE SUBMITTED THAT THE ABOVE ADDI TION IS INCLUDED IN RS.8,60,783/- AS SUPPRESSED SALES. 10. AS WE HAVE RESTORED THE ADDITION OF RS.27,49,190/- TO THE FILE OF THE ASSESSING OFFICER, THE ADDITION OF RS.8,60,783/- BEING SUP PRESSED SALES IS ALSO RESTORED TO THE FILE OF THE ASSESSING OFFICER WITH TH E SAME DIRECTION AS GIVE ABOVE. THIS ISSUE IS ALSO ALLOWED FOR STATISTICAL P URPOSES. 11. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 15 /01/2018. SD/- SD/- (N.S SAINI) ( PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIALMEMBER 5 ITA NO. 01/RPR/2014 ASSESSMENT YEAR : 2009-2010 RAIPUR; DATED 15 /01/2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, RAIPUR 1. THE APPELLANT : M/S. BASJRANG CONVEYORS, 28, SECTOR - C, INDUSTRIAL ESTAE, SIRGITTI, BILASPUR 2. THE INCOME TAX OFFICER, - 2(1), MAHIMA COMPLEX, VYAPAR VIHAR, BILASOPUR 3. THE CIT(A)- BILASPUR 4. PR.CIT-BILASPUR 5. DR, ITAT, RAIPUR 6. GUARD FILE. //TRUE COPY//