M/s. Accura Enterprise Private Limited, Ahmedabad V. The Dy. CIT., Circle-1, Ahmedabad

ITA 1374/AHD/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0821 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-03-2020
• Assessment Year: 2011-2012
• Appeal Filed On: 23-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Corroborative evidences; TDS
• Section: 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I AMARJIT SINGH , ACCOUNTANT MEMBER AND MS. MADHUMITA ROY , JUDICIAL MEMBER M/S. ACCURA ENTERPRISES PVT. LTD. 28, UGANDA SOCIETY, NR. SUBHASH CHOWK, MEMNAGAR, AHMEDABAD - 380052 PAN: AAGCA4311D (APPELLANT) VS THE DCIT , CIRCLE - 1 , AHMEDABAD (RESPONDENT) REVENUE BY : S H RI VIDHYUT TRIVEDI , SR. D . R. ASSESSEE BY: SHRI TUSHAR HEMANI , A.R. DATE OF HEARING : 16 - 0 3 - 2 020 DATE OF PRONOUNCEMENT : 27 - 05 - 2 020 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMB ER : - THIS ASSESSEE S APPEAL FOR A.Y. 2011 - 12 , ARI SES FROM ORDER OF THE CIT(A) - 6, AHMEDABAD DATED 24 - 03 - 2 016 , IN PROCEEDINGS UNDER SECTION 1 4 3(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE SOLITARY ISSUE IN THE GROUND OF APPEAL OF THE ASSES SEE FI L E D AGAINST THE DECISION OF LD. CIT(A) IN CONFIRMING THE ADDITION OF RS. 19 , 98 , 102/ - IN RESPECT OF OUTSTANDING SUNDRY CREDITORS BY THE ASSESSING OFFICER. THE I T A NO . 1374 / A HD/20 16 A S S ESSMENT YEAR 2011 - 12 I.T.A NO. 1374 /AHD/20 16 A.Y. 2011 - 12 PAGE NO M/S. AC CURA ENTERPRISES PVT. LTD. VS. DCIT 2 ASSESSEE HAS ALSO RAISED THE ISSUE THAT LOWER AUTHORITIES HAVE NOT PROPERLY CONSIDERED THE VARIOUS SUBMISSIONS, EXPLANATION AND INFORMATION SUBMITTED BY THE ASSESSEE DURING THE COURSE OF APPELLATE PROCEEDINGS. 3. THE FACT IN BRIEF IS THAT RETURN OF INCOME DECLARING INCOME OF RS. 56 , 11 , 750/ - WAS FILED ON 26 TH SEP, 2011. THE CASE WAS SUBJECT T O SCRUTINY ASSESSMENT AND NOTICE U/S. 143(2) OF THE ACT WAS ISSUED ON 28 TH SEP, 2012. DURING THE COURSE OF ASSES SMENT, THE ASSESSING OFFICER NOTICED THAT THERE WAS OUTSTANDING SUNDRY CREDIT TO THE AMOUNT OF RS. 1 , 71 , 79 , 314/ - DURING THE YEAR UNDER CONSIDER ATION. THE ASSESSING OFFICER HAS OBTAINED CONFIRMATION FROM THE ASSESSEE IN RESPECT OF THE OUTSTANDING SUNDRY CREDITORS, HOWEVER, THE ASSESSEE HAS NOT SUBMITTED CONFIRMATION IN RESPECT OF THE FOLLOWING TWO PARTIES: - SR. NO. NAME OF SUNDRY CREDITORS AMO UNT 1 WESTWIND SHIPPING & LOGISTICS PVT. LTD. 1244612 2 KANKANE OIL MILLS 753490 TOTAL 1998102 THEREFORE, THE ASSESSEE WAS ASKED TO EXPLAIN WHY NOT THE AFORESAID TWO SUNDRY CREDITORS TOTALING TO THE AMOUNT OF RS. 19 , 98 , 102/ - SHOULD BE DIS ALLOWED AS THE ASSESSEE HAS FAILED TO PROVE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE SUNDRY CREDITORS. IN RESPONSE, THE ASSESSEE HAS FURNISHED COPY OF BILLS, DETAIL OF PAYMENT MADE THROUGH BANKING CHANNEL ETC. I.T.A NO. 1374 /AHD/20 16 A.Y. 2011 - 12 PAGE NO M/S. AC CURA ENTERPRISES PVT. LTD. VS. DCIT 3 HOWEVER, THE ASSESSING OFFICER HAS NOT AGREED WITH THE SUBMISSION OF THE ASSESSEE STATING THAT ASSESSEE HAS NOT ESTABLISHED THAT THE EXPENSES WERE INCURRED IN THE CURRENT YEAR . T HEREFORE AN AMOUNT OF RS. 11 , 99 , 604/ - WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 4. AGGRIEVED ASSESSEE HAS F ILED APPEAL BEFORE THE LD. CIT(A). T HE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE HOLDING THAT THE ASSESSEE HAS FAILED TO ESTABLISH THE GENUINENESS OF THE TRANSACTION. 5. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE LD. COUNSEL HAS FURNISH ED PAPER BOOK COMPRISING DETAIL OF DOCUMENT AND INFORMATION FURNISHED BEFORE THE LOWER AUTHORITIES . THE LD. COUNSEL HAS REFERRED DIFFERENT PAGES OF THE PAPER BOOK I.E. COPY OF BILL OF THE PARTY FROM WHOM THE GOODS WERE PURCHASED, COPY OF TRANSPORT RE CEIPT S OF THE TRANSPORTER FOR DELIVERY OF GOODS TO THE ASSESSEE , COPIES OF BANK ACCOUNT SHOWING PAYMENT MADE TO THE PARTIES, COPIES OF INVOICES, COPIES OF SALES TAX, FORM NO. H , COPIES OF CONTRACT NOTES, COPIES OF FOR M NO. 59, COPIES OF FORM NO. 403 OF THE CO MMERCIAL TAX DEPARTMENT AS EVIDENCE OF DISPATCH OF GOODS FROM THE PURCHASE R S TO THE ASSESSEE, COPIES OF RECEIPT OF THE P AYMENT MADE TO TRANSPORTER, COPIES OF FORM NO. C OF CENTRAL SALES TAX, COPIES OF CONFIRMATION OF THE SUNDRY CREDITORS ETC. AFTER REFERRI NG BRIEFLY ELABORATED AFORESAID DOCUMENTS, THE LD. COUNSEL HAS VEHEMENTLY CONTENDED THAT LOWER AUTHORITIES HAVE MADE THE DISALLOWANCE WITHOUT CONSID ERING THE RELEVANT EVIDENCES, T HEREFORE, THE CLAIM OF THE ASSESSEE SHOULD BE ALLOWED ON MERIT. ON THE OTHE R HAND, THE LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF LOWER AUTHORITIES. I.T.A NO. 1374 /AHD/20 16 A.Y. 2011 - 12 PAGE NO M/S. AC CURA ENTERPRISES PVT. LTD. VS. DCIT 4 6 . WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. DURING THE COURSE OF ASSESSMENT, THE ASSESSING OFFICER HAS MADE DISALLOWANCE TO THE AMOUNT OF RS. 19 , 98 , 102/ - IN RESPECT OF SUNDRY CREDITORS PERTAINING TO THE ABOVE REFERRED TWO PARTIES ON THE GROUND THAT REQUIRED CONFIRMATION WAS NOT FURNISHED BY THE ASSESSEE. SUBSEQUENTLY, THE ASSESSEE HAS FURNISHED THE CONFIRMATION BEFORE THE LD. CIT(A) AS ADDI TIONAL EVIDENCES UNDER RULE 46A OF THE ACT. THE LD. CIT(A) HAS ADMITTED THE ADDITIONAL EVIDENCES AND CALLED REMAND REPORT FROM THE ASSESSING OFFICER. IN THE REMAND REPORT , THE ASSESSING OFFICER HAS STATED THAT IN RESPECT OF SUNDRY CREDITORS NAME LY W ESTWI ND LOGISTICS PVT. LTD. THE NECESSARY BOOKS OF ACCOUNT AND OTHER DOCUMENT WERE MAINTAINED AND TDS WAS DEDUCTED AND NECESSARY BILLS WERE VERIFIED T HEREFORE, STATED THAT THE APPEAL BE DECIDED ON MERIT. IN RESPECT OF OTHER SUNDRY CREDITORS NAMELY M/S. KANKANE OIL MILLS, THE ASSESSING OFFICER HAS ST A TED T HAT NOTICE ISSUED TO IT WAS RETURNED UN - SERVED. HOWEVER, ON PERUSAL OF THE MATERIAL KEPT IN THE PAPER BOOK , IT IS NOTICED THAT ASSESSEE HAS FURNISHED THE COPY OF SALE INVOICE PERTAINING TO KANK ANE OIL MILL AND COPY OF CONTRACT NOTE, COPY OF CHALLAN, COPY OF RECEIPT OF THE AGRICULTURAL PRODUCTION OF MARKETING COMMITTEE, COPY OF FORM NO. 403 OF THE COMMERCIAL SALES TAX DEPARTMENT CERTIFYING THAT GOODS WERE DISTRIBUTED FROM KANKANE OIL MILL TO PLACE OF THE ASSESSEE . FURTHER , THE ASESSEE HAS ALSO PLACED IN THE PAPER BOOK COPY OF TRANSPORTER RECEIPT ALONG WITH PAYMENT OF T RANSPORT CHARGES FOR DELIVERING THE GOODS FROM THE CONSIGNER TO THE ASSESSEE, COPY OF BANK ACCOUNT STATEMENT SHOWING THAT PAYMENT WAS MADE BY THE A SSESEE TO KANK ANE OIL MILL. IN ADDITION TO ABOVE, WE HAVE NOTI CED THAT THE PARTY NAMELY KANKANE OIL MILL WAS BASED IN UTTAR PRADESH AND FOR ANY FURTHER VERIFICATION THE ASSESSING OFFICER SHOULD I.T.A NO. 1374 /AHD/20 16 A.Y. 2011 - 12 PAGE NO M/S. AC CURA ENTERPRISES PVT. LTD. VS. DCIT 5 HAVE ISSUED COMMISSION U/ S .131(I )(D) OF THE ACT AFTER KEEPING INTO CONSIDERATION THE DISTANCE FROM THE P L AC E OF THE ASSESSEE AND THE PLACE OF THE ASSESSEE. THE ASSESSING OFFICER HAS NEITHER GIVEN ANY COMMISSION NOR DISPROVED A NUMBER OF EVIDENCES FURNISHED BY THE ASSESSEE IN SUPPORTED OF ITS CLAIM OF PURCHASING TH E GOODS FROM THE AF ORESAID PARTIES. THE LD. CIT(A) HAS NOT DISPROVED THE RELEVANT SUPPORTING EVIDENCES FURNISHED IN RESPECT OF OTHER PARTY NAMELY WESTWIND SHIPPING LOGISTICS PVT. LTD. IN SPITE OF THE FACT THAT ASSESSING OFFICER HAS CLEARLY MENTIONED IN H IS REMAND REPORT THAT BILLS WERE VERIFIED AND TDS WAS DEDUCTED. THEREFORE, CONSIDERING THE AFORESAID FACTS AND CIRCUMSTANCES, WE ARE NOT INCLINED WITH T HE DECISION OF THE LD. CIT(A) FOR SUSTAIN ING THE ADDITIONS ON ASSUMPTION BASIS WITHOUT DISPROVING THE R ELEVANT MATERIAL SUBMITTED BY THE ASSESSEE. THEREFORE, THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 27 - 05 - 20 20 SD/ - SD/ - ( MADHUMITA ROY ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 27 /05 /2020 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDA BAD 6. GUARD FILE. I.T.A NO. 1374 /AHD/20 16 A.Y. 2011 - 12 PAGE NO M/S. AC CURA ENTERPRISES PVT. LTD. VS. DCIT 6 BY ORDER/ , / ,