ITO, New Delhi V. Sh. Mool Chand, Delhi

ITA 1400/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9766 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 07-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.1400/DEL/2017 ASSESSMENT YEAR: 2012-13 INCOME TAX OFFICER WARD 56 (5), ROOM NO.D4 VIKAS BHAWAN, D- BLOCK NEW DELHI-110002 VS MOOL CHAND A-559, GALI NO.12, BANK COLONY ROAD, MANDOLI EXTN. DELHI-110093 PAN NO. ADAPC5253C (APPELLANT) (RESPONDENT) APPELLANT BY MS. NIDHI SRIVASTAVA, CIT DR RESPONDENT BY NONE DATE OF HEARING: 01/07/2019 DATE OF PRONOUNCEMENT: 02/07/2019 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE CIT(A)-19, NEW DELHI DATED 13.12.2016 PERTAININ G TO A. Y. 2012-13. 2. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT TH E CIT(A) ERRED IN ALLOWING RELIEF OF RS.8,94,35,688/- WITHOUT PROV IDING FURTHER OPPORTUNITY TO THE ASSESSING OFFICER TO RE-EXAMINE THE ISSUE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. 2 4. THE LD. DR WAS HEARD AT LENGTH AND CASE RECORD C AREFULLY PERUSED. 5. FACTS ON RECORD SHOW THAT WHILE PERUSING THE BAL ANCESHEET DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEE DINGS THE ASSESSING OFFICER NOTICED THE SUNDRY CREDITORS OF RS.8,94,35,688/-. THE ASSESSEE WAS ASKED TO EXPLAI N THE SAME IN THE LIGHT OF SECTION 68 OF THE IT ACT. THE ASSESSI NG OFFICER FURTHER ISSUED NOTICE U/S.133 (6) TO THE CREDITORS BUT NONE OF THE CREDITORS FILED ANY CONFIRMATION, THE ASSESSEE WAS ONCE AGAIN ASKED TO EXPLAIN THE TRANSACTION AND ON RECEIVING N O PLAUSIBLE REPLY THE ASSESSING OFFICER MADE THE ADDITION OF RS .8,94,35,688/- U/S. 68 OF THE ACT. 6. ASSESSEE STRONGLY AGITATED THE MATTER BEFORE THE CIT(A) AND STRONGLY CONTENDED THAT PARTICULARS OF ALL THE CRED ITORS WERE GIVEN TO THE ASSESSING OFFICER BUT THE ASSESSING OFFICER HAS NOT MADE ANY ENQUIRY. 7. WE FIND THE CIT(A) AT PARA 15 OF HIS ORDER HAS M ENTIONED THAT THE MATTER WAS REFERRED TO THE ASSESSING OFFIC ER WHO IN HIS REMAND REPORT CONFIRMED THE FACT THAT NO LETTER WER E ISSUED TO THE PARTIES BUT HAS RECEIVED THE CONFIRMATIONS NOW. 8. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFOR E THE CIT(A) THE ASSESSEE FILED COPY OF ACCOUNTS OF THESE CREDIT ORS FROM WHOM PURCHASES AND SALES HAVE BEEN REGULARLY DONE BY THE ASSESSEE. THE CIT(A) WAS OF THE OPINION THAT THE ADDITION IN RESPECT OF SUNDRY CREDITORS CANNOT BE MADE IF THE PURCHASES HA VE NOT BEEN DOUBTED BY THE ASSESSING OFFICER AND TRADING RESULT S HAVE NOT BEEN REJECTED. THE CIT(A) ACCORDINGLY DELETED THE A DDITION. 3 9. WE HAVE CAREFULLY GONE THROUGH THE ASSESSMENT OR DER AND THE ORDER OF THE FIRST APPELLATE AUTHORITY. IT APP EARS THAT THE COPY OF ACCOUNT WERE FILED FOR THE FIRST TIME BEFOR E THE FIRST APPELLATE AUTHORITY BUT A READING OF PARA 15 OF THE CIT(A)S ORDER SHOW THAT COPY OF ACCOUNT OF THE IMPUGNED CREDITORS PERTAINED TO SUBSEQUENT YEARS AND NOT TO THE YEAR UNDER CONSIDER ATION, THEREFORE, IT CANNOT BE SAID THAT THE SAME CONTAIN THE TRANSACTION OF PURCHASE AND SALES FOR THE YEAR UNDER CONSIDERAT ION. WE ARE OF THE CONSIDERED VIEW THAT THERE IS A CONTRADICTION I N THE FACTS AND THE DECISION OF FIRST APPELLATE AUTHORITY, THEREFOR E, IN THE INTEREST OF JUSTICE WE RESTORE THIS ISSUE TO THE FILES OF TH E ASSESSING OFFICER AND THE ASSESSEE IS DIRECTED TO FURNISH COPY OF ACC OUNTS OF THE CREDITORS ALONGWITH RESPECTIVE CONFIRMATIONS AND TH E ASSESSING OFFICER IS DIRECTED TO EXAMINE THE SAME AND DECIDE THE ISSUE AFRESH AS PER THE PROVISIONS OF THE LAW. 10. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 02.07.2019. SD/- SD/- (SUCHITRA KAMBLE) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNT ANT MEMBER *NEHA* DATE:- 02.07.2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 4 DATE OF DICTATION 01.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 01.07.2019 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 02.07.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER