M/s. Supreme Furniture Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 1092/DEL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3652 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 05-07-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 11-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANEESH BAHUSUNA
• Assessee Lawyers: GULSAN GAV

Judgement Text

ITA NO.1092/DEL/2010 1 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA, VICE PRESIDENT AND SHRI A.D. JAIN, JUDICIAL MEMBER ITA NO.1092/DEL/2010 ASSTT. YEAR: 2006-07 SUPREME FURNITURES PVT. LTD. VS INCOME TAX OFFICER, D-65, LOWER GROUND FLOOR, WARD 9(4 ), NEW DELHI. FFCC, NEB SARAI, NEW DELHI. (PAN/GIR NO.AAGCS1625L) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI GULSAN GAV RESPONDENT BY: SH. MANEESH BAHUSUNA, SR. DR O R D E R PER G.E. VEERABHADRAPPA, V.P. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R OF CIT(A)-XII, NEW DELHI DATED 24.12.2009 FOR ASSTT. YEAR 2006-07. 2. THE ONLY DISPUTE IN THIS APPEAL RELATES TO ADDIT ION OF RS.6,00,000 TO THE DECLARED INCOME ON THE GROUND THAT THERE WAS A DIFFERENCE IN JOB WORK RECEIPTS DISCLOSED. THE ASSESSEE IS A LIMITED COMP ANY ENGAGED IN THE BUSINESS OF MANUFACTURING OF OFFICE FURNITURE AND U NDERTAKES INTERIORS WORK CONTRACTS. THE ASSESSEE HAS SHOWN TOTAL JOB WORK R ECEIPTS OF RS. 1,05,10,570 DURING THE YEAR UNDER CONSIDERATION. ON GOING THRO UGH THE RELEVANT DETAILS ITA NO.1092/DEL/2010 2 AND COPY OF LEDGER ACCOUNT OF ONE OF THE PARTIES NA MELY M/S SIDH PITH SHANI DHAM, VILLAGE ALAWAS, TEHSIL SOJAT, DISTT. PALI, RA JASTHAN, IT WAS REVEALED THAT THE ASSESSEE HAS SHOWN AS RECEIPTS OF RS.10,22 ,440/- FROM THIS PARTY WHEREAS AS PER COPY OF LEDGER ACCOUNT OF THE PARTY, FURNISHED BY THE ASSESSEE COMPANY VIDE LETTER DATED 21.8.2008, IT WAS NOTICED THAT THE BILLS WERE RAISED AGAINST THIS PARTY FOR AN AMOUNT OF RS.16,22,440/-, GIVING RISE TO A DISPUTE WHICH IS THE SUBJECT MATTER OF ADDITION. THE ASSES SEE HAS FILED A PAPER BOOK CONTAINING ALL THE DETAILS AND HE HAS ALSO FURNISHE D COPY OF AUDITED PROFIT AND LOSS ACCOUNT AND BALANCE SHEET. IN THE LIGHT OF TH IS, WE HAVE HEARD BOTH SIDES. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS RECONCILED THE DIFFERENCE OF RS. 6,00,000 IN THE PA RTYS ACCOUNT AND THEREFORE AN ADDITION MADE BY THE AO AND CONFIRMED BY THE CIT (A) IS WITHOUT APPRECIATING THE ACCOUNTS OF THE ASSESSEE. 3. LD. DR, ON THE OTHER HAND, STRONGLY SUPPORTED TH E IMPUGNED ORDERS. 4. WE HAVE GONE THROUGH PAGES 13, 14, 24 AND 25 OF THE PAPER BOOK WHICH CONTAIN THE SAID RECONCILIATION WITH REFERENC E TO THE AUDITED PROFIT AND LOSS ACCOUNTS. WE ARE CONVINCED THAT THIS DIFFEREN CE OF RS.6,00,000 IS PROPERLY EXPLAINED BY THE ASSESSEE IN THE FORM OF R ECONCILIATION DIFFERENCE IN THE LEDGER ACCOUNT OF SIDH PITH SHANI DHAM AND THE AMOUNTS ARE PROPERLY ITA NO.1092/DEL/2010 3 REFLECTED IN THE PROFIT & LOSS ACCOUNT, GIVING NO S COPE FOR MAKING ANY ADDITION. THEREFORE, THE DELETION IS DELETED. 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH JULY, 2010. SD/- SD/- ( A.D. JAIN ) (G.E. VEERABHADRAPPA) JUDICIAL MEMBER VICE PRESIDENT DT. 09 TH JULY 2010 GS COPY FORWARDED TO: 1. SUPREME FURNITURE (P) LTD., NEW DELHI. 2. ITO, WARD 9(4), NEW DELHI 3. CIT(A)-XII, NEW DELHI. 4. CIT 5. DR BY ORDER DY. REGISTRAR