M/s. Ganga Tours & Travels Pvt. Ltd., Delhi V. ITO, New Delhi

ITA 1406/DEL/2014

• Counselvise Citation: 140620114 RSA 2014
• Duration Of Justice: 1 year(s) 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 11-08-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 10-03-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GARIMA JAIN
• Assessee Lawyers: VIDUR PURI
• Section: 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC- -- -1 11 1 : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 1406/DEL/2014 1406/DEL/2014 1406/DEL/2014 1406/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2002 2002 2002 2002 - -- - 03 0303 03 M/S GANGA TOURS & TRAVELS M/S GANGA TOURS & TRAVELS M/S GANGA TOURS & TRAVELS M/S GANGA TOURS & TRAVELS PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., A AA A- -- -9, ANTARIKSH APARTMENTS, 9, ANTARIKSH APARTMENTS, 9, ANTARIKSH APARTMENTS, 9, ANTARIKSH APARTMENTS, SECTOR SECTOR SECTOR SECTOR- -- -14 EXTN., ROHINI, 14 EXTN., ROHINI, 14 EXTN., ROHINI, 14 EXTN., ROHINI, DELHI DELHI DELHI DELHI 110 085. 110 085. 110 085. 110 085. PAN : AABCG4372P. PAN : AABCG4372P. PAN : AABCG4372P. PAN : AABCG4372P. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -12(1), 12(1), 12(1), 12(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIDUR PURI, CA. RESPONDENT BY : MS. GARIMA JAIN, SR.DR. DATE OF HEARING : 11.08.2015 11.08.2015 11.08.2015 11.08.2015 DATE OF PRONOUNCEMENT : 08.09.2015 08.09.2015 08.09.2015 08.09.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2002-0 3 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-IV, NE W DELHI DATED 13 TH DECEMBER, 2013. 2. THE GROUND OF APPEAL NO.2 OF THE ASSESSEE IS AS UNDER :- THE LEARNED CIT(A) ERRED IN UPHOLDING THE ADDITION OF RS.5,00,000 U/S 68 OF THE INCOME TAX ACT. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN PAR AGRAPH 2 OF THE ASSESSMENT ORDER, IT IS RECORDED BY THE ASSESSING OFF ICER THAT THE CASE WAS REOPENED FOR SOME ACCOMMODATION ENTRY OF `2 LAKHS FROM M/S GRS INVESTMENT & SERVICES. HE SUBMITTED THAT NO AD DITION OF THIS ENTRY WAS MADE BY THE ASSESSING OFFICER IN THE ASSESSMENT OR DER FRAMED BY HIM. HOWEVER, SHARE APPLICATION MONEY PER TAINING TO SEVEN ITA-1406/DEL/2014 2 PARTIES AND TOTALING TO `5 LAKHS WAS ADDED BY THE ASSESSI NG OFFICER, WITHOUT ANY VALID REASONS. THE ASSESSEE HAS PROVED THE G ENUINENESS OF THE ENTRY AND THE IDENTITY AND CREDITWORTHINESS OF THE PARTIES BY FILING NECESSARY EVIDENCE BEFORE THE ASSESSING OFFICER. HE REFERRED TO THE COPY OF THE AFFIDAVIT, BOARD RESOLUTION AND COPY OF THE INCOME TAX RETURN OF M/S MARRASS INDUSTRIES PVT.LTD. AND M/S STAR GARMENTS PVT.LTD. WHO HAD DEPOSITED `1 LAKH EACH. HE SUBMITTE D THAT WITH REGARD TO THE OTHER FIVE PARTIES, THE ASSESSEE HAS FILED THE NECESSARY EVIDENCE IN THE FORM OF CONFIRMATION AND COPY OF TH E APPLICATION FORM FOR EQUITY SHARES ALONG WITH THE COMPLETE ADDRESS TH EREOF WITH PERMANENT ACCOUNT NUMBER. THE TRANSACTIONS WERE THRO UGH BANKING CHANNELS AND THE ONUS ON THE ASSESSEE WAS DISCHARGED BY IT. 4. LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. SHE SUBMITTED THAT THE TURNOVER AND P ROFIT OF THE CREDIT PARTIES WERE NOT HIGH AND, THEREFORE, THE ASSESSE E COULD NOT PROVE THE GENUINENESS OF THE TRANSACTION OF SHARE APPL ICATION MONEY AND, THEREFORE, THE ADDITION WAS RIGHTLY MADE BY THE ASSESSING OFFICER. SHE REFERRED TO THE RELEVANT PORTION OF THE ASSESSMENT ORDER AND THE APPELLATE ORDER PASSED BY THE LEARNED CIT(A) IN SUPPO RT OF THE CASE OF THE REVENUE. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). I FIND THAT NO ADDITION OF THE ENTRY PERTAINING TO M/S GRS INVESTMEN T & SERVICES WAS MADE BY THE ASSESSING OFFICER, WHICH WAS THE BASIS FOR REO PENING OF THE CASE. HOWEVER, THE ADDITION ON ACCOUNT OF SHARE APPLICATION MONEY PERTAINING TO SEVEN PARTIES AND TOTALING TO THE AMOUNT OF `5 LAKHS WAS MADE BY THE ASSESSING OFFICER. THE ASSESSEE HAS FIL ED THE NECESSARY EVIDENCE TO PROVE THE IDENTITY AND CREDITWO RTHINESS OF THE PARTIES AND ALSO THE GENUINENESS OF THE TRANSACTIONS. TH E TRANSACTIONS ITA-1406/DEL/2014 3 WERE THROUGH BANKING CHANNELS ONLY. ALL THE PARTIES WERE EXISTING INCOME TAX ASSESSEES AND THEIR PERMANENT ACCOUNT NUMBER S WERE GIVEN TO THE ASSESSING OFFICER. THE COPY OF THE APPLIC ATION FORM FOR EQUITY SHARES WAS ALSO SUBMITTED TO THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS NOT DOUBTED THE IDENTITY OF THE PA RTIES. I FIND THAT NO MATERIAL HAS BEEN BROUGHT ON RECORD ON BEHAL F OF THE REVENUE TO DOUBT THE GENUINENESS OF THE TRANSACTIONS. THE COP IES OF VARIOUS DOCUMENTARY EVIDENCES FILED BY THE ASSESSEE IN SUPPORT OF ITS CASE HAVE BEEN FILED BY THE ASSESSEE AT PAGES 7 TO 28 OF THE COMPILATION FILED BEFORE THE TRIBUNAL. IN THESE FACTS OF THE CASE , I HOLD THAT THE PRIMARY ONUS CAST ON THE ASSESSEE TO PROVE THE IDENTITY A ND CREDITWORTHINESS OF THE PARTIES HAS BEEN DISCHARGED AND THERE IS NO VALID BASIS TO SUSTAIN THE ADDITION. ACCORDINGLY, THE ADDITION MADE IS DELETED AND GROUND NO.2 OF THE ASSESSEES APPEAL IS ALLOW ED. 6. GROUND NO.1 OF THE ASSESSEES APPEAL IS AS UNDER:- THE LEARNED CIT(A) ERRED IN UPHOLDING THE VALIDITY OF ISSUE OF NOTICE AND PROCEEDINGS U/S 148 OF THE INCOME TAX A CT. 7. IN VIEW OF MY FINDING DELETING THE ADDITION ON M ERITS IN THE FOREGOING PARAGRAPHS OF THIS ORDER AND DECIDING GROU ND NO.2 OF THE ASSESSEES APPEAL IN ITS FAVOUR, I AM NOT ADJUDICATING GR OUND NO.1 OF THE ASSESSEES APPEAL. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY AL LOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 8 TH SEPTEMBER, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-1406/DEL/2014 4 COPY FORWARDED TO: - 1. APPELLANT : M/S GANGA TOURS & TRAVELS PVT.LTD., M/S GANGA TOURS & TRAVELS PVT.LTD., M/S GANGA TOURS & TRAVELS PVT.LTD., M/S GANGA TOURS & TRAVELS PVT.LTD., A AA A- -- -9, ANTARIKSH APARTMENTS, 9, ANTARIKSH APARTMENTS, 9, ANTARIKSH APARTMENTS, 9, ANTARIKSH APARTMENTS, SECTOR SECTOR SECTOR SECTOR- -- -14 EX 14 EX 14 EX 14 EXTN., ROHINI, DELHI TN., ROHINI, DELHI TN., ROHINI, DELHI TN., ROHINI, DELHI 110 085. 110 085. 110 085. 110 085. 2. RESPONDENT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -12(1), NEW DELHI. 12(1), NEW DELHI. 12(1), NEW DELHI. 12(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR