Shri Rameshchandra Ishwarlal Gandhi,HUF, Surat V. The ACIT.,Circle-6, Surat

ITA 1052/AHD/2008

• Counselvise Citation: 105220514 RSA 2008
• Duration Of Justice: 3 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-11-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 24-03-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M K PATEL
• Keywords: Bogus purchase; Opportunity of being heard; Additional evidence; Set aside

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , . .!'#$, % & BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1052/AHD/2008 ( ( ) ( ) ( ) ( ) / / / / ASSESSMENT YEAR : 2004-05) RAMESHCHANDRA ISHWARLAL GANDHI-HUF 6/2507, MAHIDHARPURA SURAT ( ( ( ( / VS. THE ASSTT.CIT CIRCLE-6 SURAT * % ./+, ./ PAN/GIR NO. : AACHR 4622 R ( *- / // / APPELLANT ) .. ( ./*- / RESPONDENT ) *- 0 / APPELLANT BY : SHRI M.K.PATEL ./*- 1 0 / RESPONDENT BY : SHRI VINOD TANWANI, SR.D.R. (2 1 3% / / / / DATE OF HEARING : 17/11/2011 4') 1 3% / DATE OF PRONOUNCEMENT : 16/12/2011 5 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE ASSESSEE WH ICH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-IV, SURAT DATED 30/11/2007 PASSED FOR A.Y. 2004-05 AND THE SOLITAR Y SUBSTANTIAL GROUND READS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF THE INC OME TAX (APPEALS) HAS ERRED CONFIRMING THE ACTION OF THE AS SESSING OFFICER ITA NO.1052/AHD /2008 RAMESHCHANDRA ISHWARLAL GANDHI-HUF VS. ASST.CIT ASST.YEAR - 2004-05 - 2 - IN MAKING ADDITION OF RS.1,75,06,500/- ON THE GROUN D OF ALLEGED CESSATION OF LIABILITY U/S.41(1). 2. AT THE OUTSET, PARTIES APPEARING BEFORE US HAVE INFORMED THAT VIDE AN ORDER OF ITAT A BENCH AHMEDABAD FOR A.Y. 2003 -04 DATED 19/07/2007, THE ISSUE HAD ALREADY BEEN RESTORED BAC K TO THE FILE OF LEARNED CIT(APPEALS) WITH THE DIRECTION TO DECIDE O N THE BASIS OF THE EVIDENCES. IT HAS BEEN POINTED OUT THAT THE AFOREM ENTIONED ORDER OF THE TRIBUNAL WAS A CONSOLIDATED ORDER, WHEREIN THE ASSE SSEES NAME APPEARS AT SL.NO.5 BEARING ITA NO.2091/AHD/2007 TITLED AS SHRI RAMESHBHAI I.GANDHI VS. ACIT. 3. THROUGH AN ASSESSMENT ORDER PASSED U/S.143(3) OF THE I.T.ACT DATED 28/12/2006 IN THE STATUS OF HUF A SHOW-CAUSE NOTICE WAS ISSUED THROUGH WHICH IT WAS ENQUIRED THAT AN AMOUNT OF RS. 1,75,06,500/- WAS SHOWN AS SUNDRY CREDITORS AND THOSE CREDITORS WER E IN RESPECT OF THE PURCHASES OF THE PRECEDING YEARS. THE REVENUE DEPA RTMENT HAD CARRIED OUT THE ENQUIRY AND LETTERS WERE ISSUED U/S.133(6) OF THE I.T.ACT TO THOSE PARTIES, HOWEVER, REMAINED UNSERVED. THE LEARNED C IT(APPEALS) HAS ALSO MENTIONED THAT THE SO-CALLED CREDITORS WERE NO T AVAILABLE AND THAT THE PURCHASES WERE NOT MADE DIRECTLY AND THE ASSESSEE D ID NOT HAVE ANY DIRECT TRADE WITH THOSE PARTIES. A CONCLUSION WAS DRAWN THAT THE ENTIRE LIABILITY WAS BOGUS. WITH THIS FACTUAL BACKGROUND, WE HAVE FOUND THAT THE RESPECTED CO-ORDINATE BENCH HAS MADE AN OPENING REMARK THAT THE GROUNDS RAISED PERTAINED TO THE ALLEGED BOGUS PURCH ASES AND IN THE LIGHT OF THE NEW MATERIAL PLACED ON RECORD, IT WAS DIRECT ED THEREIN AS UNDER:- ITA NO.1052/AHD /2008 RAMESHCHANDRA ISHWARLAL GANDHI-HUF VS. ASST.CIT ASST.YEAR - 2004-05 - 3 - 5. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED MA TERIAL AVAILABLE ON RECORD. IN THE GIVEN FACTS AND CIRCUM STANCES, WE ARE OF THE VIEW THAT ADMISSION OF ADDITIONAL EVIDENCE S HALL BE PERMITTED IN THE INTEREST OF JUSTICE, AS THE ASSESS EE HAS BEEN ALLEGED TO BE INDULGED IN BOGUS PURCHASES AND EVIDENCE IS F ILED AT THE TIME OF ADMISSION OF FIRST APPEAL IN SUPPORT OF HIS CLAI M THAT PARTIES ARE GENUINE. IN THIS VIEW OF THE MATTER, WE ADMIT ADDI TIONAL EVIDENCE AND SET ASIDE THE MATTER BACK TO THE FILE OF CIT(A) TO DECIDE THE APPEAL ON THE BASIS OF THESE EVIDENCES AND GIVING T HE ASSESSEE AN OPPORTUNITY OF BEING HEARD. 4. IN THE LIGHT OF THE ABOVE DISCUSSION SINCE ON ID ENTICAL FACTS THE ISSUE INVOLVED IN THE YEAR UNDER CONSIDERATION, I.E . A.Y. 2004-05 HAPPENED TO BE IDENTICAL WITH THE FACTS OF A.Y. 200 3-04, THEREFORE THE VIEW TAKEN BY THE RESPECTED CO-ORDINATE BENCH IS TO BE FOLLOWED, HENCE WE HEREBY RESTORE THE SAME BACK TO THE FILE OF LEAR NED CIT(APPEALS) TO BE DECIDED ALONG WITH THE SAID YEAR. WE HOLD ACCOR DINGLY. THEREFORE, THIS GROUND OF THE ASSESSEE MAY BE TREATED AS ALLOW ED BUT FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- ( A.K. GARODIA ) ( MUKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD; DATED 16/ 12 /2011 63..(, .(../ T.C. NAIR, SR. PS ITA NO.1052/AHD /2008 RAMESHCHANDRA ISHWARLAL GANDHI-HUF VS. ASST.CIT ASST.YEAR - 2004-05 - 4 - 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7)/ COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. 9 / CONCERNED CIT 4. 9() / THE CIT(A)-IV, SURAT 5. 7 >> >/ // / + + + + ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION..14.12.11 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 15.12.11 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 16/12/2011 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 16/12/2011 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER