M/s. S.B. Industries, Muzaffarnagar V. ITO, Muzaffarnagar

ITA 1373/DEL/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4345 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 07-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY TRIPATHI
• Section: 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI G BENCH, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER, AND SHRI N.K. BILLAIYA ACCOUNTANT MEMBER ITA NO. 1373 /DEL/201 7 [A.Y 20 11 - 12 ] M/S S.B. INDUSTRIES VS. THE I.T .O NEAR CASTING WARD 1 ( 2 ) RAINBOW ROAD MUZAFFARNAGAR MUZAFFARNAGAR PAN : A BPFS 4829 M [APPELLANT] [RESPONDENT] DATE OF HEARING : 2 9 . 1 0 .201 8 DATE OF PRONOUNCEMENT : 31 . 1 0.2018 ASSESSEE BY : SHRI ANKIT GUPTA , ADV REVENUE BY : SHRI SANJAY TRIPATHI , SR - DR ORDER PER N.K. BILLAIYA , ACCOUNTANT MEMBER, THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT(A) , MUZAFFARNAGAR DATED 20. 12 .201 6 PERTAINING TO A.Y 20 11 - 12 . 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN UPHOLDING THE ADDITIONS MADE BY THE ASSESSING OFFICER. 2 3. FACTS ON RECORD SHOW THAT THE ASSESSMENT WAS FRAMED U/S 144 OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT'] VIDE ORDER DATED 29.03.2014 BY WHICH THE ASSESSING OFFICER ESTIMATED THE NET PROFIT AT 10% FOLLOWING THE A SSESSMENT FOR A.Y 2010 - 11. 4. WE FIND THAT THE DISPUTE IN A.Y 2010 - 11 TRAVELLED UPTO THE TRIBUNAL AND THE TRIBUNAL VIDE ORDER DATED 16.09.2016 IN ITA NO. 1056/DEL/2015 HAS RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER BY HOLDING AS UNDER: AFTER CONSIDERING RIVAL SUBMISSIONS AND PERUSING RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THERE ARE CERTAIN CONTRADICTIONS IN RECORDING OF THE FACTUAL POSITION BY THE AO AND THE ASSERTIONS MADE ON BEHALF OF THE ASSESSEE. WHEREAS THE ASSESSING OFFI CER HAS RECORDED THAT THE ASSESSEE PRODUCED PURCHASE BILLS ONLY FOR RS. 37.26 LAKHS OUT OF TOTAL OF RS. 1.42 CRORES, THE LD. COUNSEL FOR THE ASSESSEE HAS PLACED ON RECORD COPIES OF ALL THE INVOICES AND SUBMITTED THAT THESE WERE AVAILABLE BEFORE THE ASSESSI NG OFFICER AS WELL. SIMILARLY, THERE ARE CONTRADICTIONS QUA THE SUPPORT FOR EXPENSES. IT IS ALSO FOUND THAT THE A.O. HAS NOT GIVEN ANY BASIS FOR ESTIMATING SALES AT RS. 1.80 CRORE AND FURTHER THE APPLICATION OF PROFIT RATE AT 10%. AS THE ASSESSEE NOW CLAI MS TO HAVE THE ENTIRE MATERIAL AVAILABLE WITH IT 3 ENABLING THE A.O. TO COMPLETE ASSESSMENT ON THE BASIS OF DECLARED RESULTS, I CONSIDER IT EXPEDIENT TO SET ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF THE A 0 FOR DETERMINING INCOME AS PER LAW ON THE BASIS OF EVIDENCE NOW AVAILABLE WITH THE ASSESSEE. I ORDER ACCORDINGLY. 5. RESPECTFULLY FOLLOWING THE FINDINGS OF THE COORDINATE BENCH AND ON FINDING THAT THE ASSESSMENT IS BASED ON A.Y 2010 - 11, WE DEEM IT FIT TO RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH SIMILAR DIRECTIONS AS GIVEN IN A.Y 2010 - 11 [SUPRA]. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO. 1373 /DEL/201 7 IS ALLOWED FOR STATISTICAL PURPOSES . THE ORDER IS PRON OUNCED IN THE OPEN COURT ON 31 . 1 0.2018. S D / - S D / - [ H.S. SIDHU ] [ N.K. BILLAIYA ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31 S T OCTOBER , 2018 VL/ 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER