M/s. J.C. & Sons, Baroda V. The Income tax Officer,Ward-2(3), Baroda

ITA 1118/AHD/2011

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8653 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-01-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 15-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND SR DR
• Assessee Lawyers: M J SHAH

Judgement Text

, , , , B, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, B BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.1118/AHD/2011 [ASSTT.YEAR : 2006-2007] M/S.J.C. & SONS SHRIJI KRUPA, 25/C, PRATAPNAGAR SOCIETY NR. ROSARY SCHOOL, BARODA. PAN : AAEFJ 1057 A /VS. ITO, WARD-2(3) BARODA. ( (( ( -. -. -. -. / APPELLANT) ( (( ( /0-. /0-. /0-. /0-. / RESPONDENT) 1& 2 3 ) / ASSESSEE BY : SHRI M.J. SHAH, + 2 3 ) / REVENUE BY : SHRI ROOPCHAND, SR.DR 5 2 &(* / DATE OF HEARING : 6 TH JANUARY, 2015 678 2 &(* / DATE OF PRONOUNCEMENT : 02-02-2015 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSTT.YEAR 2006-2007 IS DIRECTED AGAINST THE OR DER OF THE CIT(A). 2. ONLY GROUND OF THE APPEAL OF THE ASSESSEE IS AS UNDER: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS AND HAS DISMISSED THE APPEAL THEREBY CONFIRMING THE ADDITION OF RS.9, 27,614/- U/S.68 OF THE IT ACT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE AMOUNT REPRESENTING THE CREDIT IN THE ACCOUNTS OF THE PART NERS COULD NOT BE ITA NO.1118/AHD/2011 -2- CONSIDERED IN THE HANDS OF THE ASSESSEE-FIRM, AND S HOULD HAVE BEEN CONSIDERED IN THE INDIVIDUAL ASSESSMENT OF THE PART NERS. HE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN M/S.MAHARASHTR A PACKING VS. ITO, IN TAX APPEAL NO.325 OF 2002 ORDER DATED 17.11.2014. THE LEARNED DR HAS RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS. THE FACT THAT THE ADDITION WAS MADE ON ACCOUNT OF CREDIT ENTRIES IN THE ACCOUN TS OF THE PARTNERS OF THE ASSESSEE-FIRM, IS NOT IN DISPUTE. THE ISSUE IS COV ERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE JURISDICT IONAL HIGH COURT IN M/S.MAHARASHTRA PACKING VS. ITO (SUPRA), AND THERE FORE THE ISSUE OF ADDITION FOR CREDIT IN THE ACCOUNTS OF THE PARTNERS COULD NOT HAVE BEEN CONSIDERED IN THE HANDS OF THE ASSESSEE-FIRM, AND I N CASE THE AO WAS NOT SATISFIED WITH THE SOURCES OF CREDITS IN THE ACCOUN TS OF THE PARTNERS, THEY WERE ENTITLED TO PROCEED AGAINST THE PARTNERS AND A SSESS THE SAME IN THE HANDS OF THE PARTNERS. ACCORDINGLY, THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE AND THE GROUND OF THE APPEAL OF THE ASSESS EE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT