Sri K Venkatapati Raju, Visakhapatnam., Visakhapatnam V. The ACIT, Circle-5(1), Visakhapatnam

ITA 137/VIZ/2005

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 9171 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 1999-2000
• Appeal Filed On: 21-02-2005
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Assessee Lawyers: V SRIRAMA MURTHY
• Keywords: Additional evidence
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.137/VIZAG/2005 ASSESSMENT YEAR : 1999-2000 K. VENKATAPATHI RAJU VISAKHAPATNAM ACIT, CIRCLE-5(1) VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AEPPK 6300N APPELLANT BY: SHRI V. SRIRAMA MURTHY, CA RESPONDENT BY: SHRI G.S.S. GOPINATH, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST T HE ORDER OF THE CIT(A) ON VARIOUS GROUNDS. DURING THE COURSE OF HE ARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS FILED THE CONCISE GROUNDS OF APPEAL AND THE SAME WAS TAKEN ON RECORD IN PLACE OF ORIGINAL GROUN DS. 2. ACCORDING TO THE REVISED GROUNDS OF APPEAL, THE ASSESSEE HAS ASSAILED THE ORDER OF THE CIT(A) THAT HE HAS ERRED IN CONFIR MING THE ADDITION OF RS.5 LAKHS WITHOUT REALIZING THAT IT WAS A TRADE CREDIT. 3. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT A CREDIT APPEARING IN T HE NAME OF PDSRV PRASADA RAJU OF RS.5 LAKHS WAS FOUND IN THE BOOKS O F ACCOUNTS OF THE ASSESSEES. THE ASSESSEE HAS CONTENDED THAT IT WAS A TRADE CREDIT AND THROUGH LETTER DATED 18.12.2003 MR. RAJU HAS CONFIR MED THAT HE HAS SUPPLIED THE MATERIAL WORTH RS.5 LAKHS IN THE NAME OF THE AS SESSEES. SINCE THE ASSESSEE COULD NOT PRODUCE THE CREDITORS BEFORE THE A.O., THE ADDITION WAS MADE U/S 68 OF THE ACT. THE ASSESSEE HAS INVITED O UR ATTENTION TO THE REPORT FILED BY THE ASSESSING OFFICER IN WHICH HE HAS ADMI TTED THAT THROUGH CONFIRMATION LETTER DATED 18.12.2003, MR. RAJU HAS ADMITTED THAT HE HAS SUPPLIED MATERIAL WORTH RS. 5 LAKHS TO THE ASSESSEE S. HE HAS ALSO CONFIRMED 2 THAT HE WAS ASSESSED TO TAX AND HIS PAN NO. WAS FUR NISHED. THE ADDITION WAS CONFIRMED BY THE CIT(A) ONLY FOR THE REASON THA T HE COULD NOT PRODUCE THE CREDITOR FOR EXPLANATIONS. 4. DURING THE COURSE OF HEARING OUR ATTENTION WAS I NVITED TO THE CONFIRMATION LETTER FILED BY MR. RAJU IN WHICH HE H AS GIVEN HIS PAN NO. AND HAS ALSO CONFIRMED THAT HE HAS SUPPLIED THE MATERIA L WORTH RS. 5 LAKHS TO THE ASSESSEES. IN HIS BALANCE SHEET, HE HAS ALSO SHOWN THE ASSESSEE TO BE A DEBTOR UNDER THE HEAD OF `CURRENT ASSETS AND THESE FACTS ARE NOT TAKEN INTO ACCOUNT BY THE CIT(A) WHILE ADJUDICATING THE ISSUE. 5. THE LD. D.R. HOWEVER SUBMITTED THAT THIS IS THE ADDITIONAL EVIDENCE WHICH REQUIRES PROPER VERIFICATIONS AND HE HAS NO O BJECTION IF THE MATTER IS SENT BACK TO THE FILE OF THE A.O. FOR RE-ADJUDICATI ON OF THE ISSUE IN THE LIGHT OF THIS EVIDENCE. 6. HAVING CAREFULLY GONE THROUGH THE MATERIAL AVAIL ABLE ON RECORD IN THE LIGHT OF RIVAL SUBMISSIONS, WE ARE OF THE CONSIDERE D VIEW THAT THESE ISSUES REQUIRE A FRESH ADJUDICATION BY THE A.O. IN THE LIG HT OF THE CONFIRMATION LETTER FILED BY THE CREDITOR. WE ACCORDINGLY, SET ASIDE T HE ORDER OF THE CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE A.O. TO RE-AD JUDICATE THE ISSUE IN THE LIGHT OF THE CONFIRMATION LETTER FILED BY THE ASSESSEES. PRONOUNCED I N THE OPEN COURT ON 28.1.2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 28 TH JANUARY, 2010 3 COPY TO 1 K. VENKATAPATHI RAJU, D.NO.16-155, MEHER NAGAR, G AJUWAKA, VISAKHAPATNAM 2 ACIT, CIRCLE-5(1), VISAKHAPATNAM 3 THE CIT-1, VISAKHAPATNAM 4 THE CIT(A)-I, VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM