FLOW WELL PROFILES, Jaipur V. ITO, Alwar

ITA 131/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5417 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 21-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DHK
• Assessee Lawyers: D KUMAR
• Keywords: Unexplained cash credit; Unexplained investment

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 131/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2006-07. M/S. FLOW WELL PROFILES, GI-684, INDUSTRIAL AREA, BHIWADI, ALWAR. CUKE VS. THE INCOME TAX OFFICER, WARD 2(2), ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABFF 2151 N VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI D. KUMAR(ADVOCATE) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 11/01/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 29/02/2016. VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS ASSESSEES APPEAL FILED AGAINST THE ORDER OF THE LD. CIT (A), ALWAR DATED 16.12.2013 FOR THE ASSESSMENT YEAR 2006-07 CONTENDI NG THAT LD. CIT (A) HAS ERRED IN LAW AND IN FACTS (I) IN MAKING ADDITION OF RS. 1,04,537/- ON ACCOUNT OF UNDERVALUATION OF CLOSING STOCK. (II) IN CONFIRMING ADDITION OF CAPITAL CONTRIBUTION OF T HE PARTNERS AS UNEXPLAINED INVESTMENT BY (A) SHRI S.A. USMANI RS. 80,000/- (B) SHRI KAMAL SHARMA RS. 20,000/- (C) SMT. ALKA GUPTA RS. 40,000/- (III) IN DISALLOWING CONSEQUENTIAL INTEREST TO THE PARTNE RS. 2 ITA NO. 131/JP/2014 M/S. FLOW WELL PROFILES VS. ITO (IV) IN DISALLOWING REPAIRS AND MAINTENANCE AND CARTAGE INWARD EXPENSES RS. 2,247/- 2. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MA TERIAL ON RECORD. APROPOS GROUND NO. (II) & (III) I.E. UNEXPLAINED CA PITAL CONTRIBUTION OF THE PARTNERS AND CONSEQUENTIAL INTEREST, IT IS SETTLED LAW THAT THE PARTNERSHIP FIRM HAVING BEEN HELD AS GENUINE, THE CAPITAL CONTRIBUTION MADE BY THE PARTN ERS CANNOT BE TREATED AS UNEXPLAINED CASH CREDIT IN THE HANDS OF THE FIRM. I N VIEW THEREOF, THE ADDITION OF CAPITAL CONTRIBUTION AND CONSEQUENTIAL INTEREST OF ABOVE TH REE PARTNERS IS DELETED. 3. APROPOS GROUND NO. (I) I.E. UNDERVALUATION OF CL OSING STOCK, RESPECTFULLY FOLLOWING THE HONBLE SUPREME COURT JUDGMENT IN THE CASE OF EX CEL INDUSTRIES, 358 ITR 295, THE ADDITION IS DELETED. HOWEVER, THE ASSESSEE SHOULD N OT BE ALLOWED ANY BENEFIT OF VALUATION OF STOCK IN SUBSEQUENT YEAR AND IF ALLOWE D, THE SAME MAY BE WITHDRAWN. 4. APROPOS LAST GROUND I.E. DISALLOWANCE OF RS. 2,2 47/- OUT OF REPAIRS AND MAINTENANCE AND CARTAGE INWARD EXPENSES, IS UNJUSTI FIED AND IS DELETED ACCORDINGLY. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/02/2016 . SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 29/02/2016. DAS/ 3 ITA NO. 131/JP/2014 M/S. FLOW WELL PROFILES VS. ITO VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. FLOW WELL PROFILES, ALWAR. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD 2(2), ALWAR. 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.131/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR