M/s. Economic Electrical Instrument Pvt. Ltd., Hapur V. ITO, Hapur

ITA 1043/DEL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6893 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 18-07-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 20-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RK GARG

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.1043/DEL/2015 ASSESSMENT YEAR : 2010-11 ECONOMIC ELECTRICAL INSTRUMENT PVT. LTD., 367, SRI NAGAR, HAPUR. PAN: AAACE3116E VS. ITO, WARD-3(4), HAPUR. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.K. GARG, ADVOCATE DEPARTMENT BY : NONE DATE OF HEARING : 18.07.2016 DATE OF PRONOUNCEMENT : 19.07.2016 ORDER PER R.S. SYAL, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 12.12.2014 IN RELATION TO T HE ASSESSMENT YEAR 2010-11. ITA NO.1043/DEL/2015 2 2. THE DEPARTMENT HAS REQUESTED FOR ADJOURNMENT IN ALL THE CASES, INCLUDING THE PRESENT CASE, FIXED TODAY FOR HEARING BEFORE THE BENCH BY GIVING THE REASON THAT: SR. DR IS NOT AVAILABLE. THERE IS NEITHER ANY ONE FROM THE SIDE OF THE REVENUE TO REPRESENT THE R EVENUE NOR TO EXPLAIN THE REASONS AS TO WHY THE BENCH BE ALLOWED TO CRASH . THE LD. AR STRONGLY OPPOSED TO THE GRANTING OF ADJOURNMENT. I AM SATISFIED THAT THE REVENUES PRAYER FOR ADJOURNMENT CANNOT BE ACCEPTED . THE SAME IS, THEREFORE, REJECTED AND THE APPEAL IS BEING TAKEN U P FOR DISPOSAL ON MERITS EX PARTE QUA THE REVENUE. 3. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.16,77,847/- TOWARDS UNEXPLAINED OUTS TANDING CREDITOR LIABILITY. 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING OF ELECTRICAL ITEMS. CE RTAIN PURCHASES WERE MADE DURING THE YEAR. THE AO CONDUCTED INQUIRY DUR ING THE COURSE OF ASSESSMENT PROCEEDINGS FROM THE SUPPLIERS OF THE AS SESSEE. TWO PARTIES, NAMELY, M/S GAYATRI TRADERS AND M/S LOV MARKETING D ID NOT RESPOND TO ITA NO.1043/DEL/2015 3 THE AOS SUMMONS. TOTAL AMOUNT STANDING CREDIT TO THE ACCOUNTS OF THESE TWO PARTIES AT RS.16,77,847/- WAS, THEREFORE, ADDED BY THE AO AS UNEXPLAINED LIABILITY. THE LD. CIT(A) AFFIRMED THE SAME. 5. I HAVE HEARD THE LD. AR AND PERUSED THE RELEVANT MATERIAL ON RECORD. THESE TWO AMOUNTS REPRESENT PURCHASES MADE BY THE ASSESSEE ON DIFFERENT DATES FROM THESE TWO PARTIES. CONFIRMED COPIES OF ACCOUNTS OF THESE TWO SUPPLIERS ARE AVAILABLE ON RECORD. NOT ON LY THAT, COPIES OF ACCOUNT OF THESE TWO PARTIES FOR SUBSEQUENT YEARS I N WHICH PAYMENT WAS MADE AGAINST SUPPLIES RECEIVED DURING THE YEAR, ARE ALSO AVAILABLE ON RECORD. COPIES OF PURCHASE BILLS WHICH LED TO THE PASSING OF CREDIT ENTRIES IN RESPECT OF THESE TWO PARTIES HAVE ALSO B EEN PROVIDED IN THE PAPER BOOK. THIS OVERWHELMING EVIDENCE CLEARLY SHO WS THAT THE ASSESSEE MADE PURCHASES FROM THESE TWO PARTIES AND MADE PAYMENT IN SUBSEQUENT YEARS. THE MERE FACT THAT THE ASSESSEE WAS HAVING SUFFICIENT CASH IN HAND, CANNOT BE A REASON TO TREAT PURCHASES MADE ON CREDIT AS NON-GENUINE AS HAS BEEN RECORDED BY THE AO. I, THE REFORE, ACCEPT THE ITA NO.1043/DEL/2015 4 GENUINENESS OF THE PURCHASES AND THESE TWO CREDITS AND, ACCORDINGLY, DELETE THE ADDITION. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 19.07.20 16. [R.S. SYAL] ACCOUNTANT MEMBER DATED, JULY, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.