Shri Chandramouli V. Kotur, Belgaum V. Income Tax Officer, Ward-2(2), Belgaum

ITA 144/PAN/2014

• Counselvise Citation: 14424114 RSA 2014
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 07-01-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 28-04-2014
• Court: TRIBUNAL
• Department Lawyers: VINAY SINGH RAWAT LD
• Assessee Lawyers: S V HALBHAVI CA LD
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ,PANAJI BENCH, PANAJI [BEFORE SHRI P. K. BANSAL, AM & SHRI D.T GARASIA, JM ] I.T . A NO . 144 /PNJ/2014 A.Y 200 8 - 09 SHRI CHANDRAMOULI V KOTUR VS. I.T.O, W 2( 2), BELGAUM PAN: AAUPK0770D ( APPELLANT) ( RESPONDENT ) FOR THE APPELLANT: SHRI S.V HALBHAVI, CA, LD.AR FOR THE RESPONDENT : SHRI VINAY SINGH RAWAT, LD.DR DATE OF HEARING: 0 7 - 01 - 2015 DATE OF PRONO UNCEMENT: 0 7 - 01 - 2015 / ORDER PER SHRI D.T GARASIA, J M: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE COMMON ORDER OF THE LD. CIT (A) , B ELGAUM DATED 19 TH FEBRUARY 2014 FOR THE ASSESSMENT YEAR 2008 - 09 . 2. THE ASSESSEE HAS RAISED THE FOLLO WING GROUNDS OF APPEAL: - 1. THE LEARNED CIT APPEALS IS NOT JUSTIFIED IN CONFIRMING HUGE ADDITIONS UNPAID CREDITORS BALANCE, THOUGH THE BOOKS OF ACCOUNTS, INVOICES AND PAYMENT DETAILS ARE PRODUCED. 2. THE CIT APPEALS HAS NOT APPRECIATED THE FACTS THAT THE APPELLANT HAS WRITTEN BACK MANY CREDITORS BALANCE IN FUTURE ASSESSMENT YEARS AND DECLARED AS INCOME IN THE BOOKS OF ACCOUNTS. 3. THE CIT APPEALS IS NOT JUSTIFIED IN REJECTING THE BOOKS OF ACCOUNTS ONLY ON THE GROUND THAT SOME CREDITORS HAVE NOT CONFIRMED THEIR BALANCES. 4. THE CIT APPEALS HAS ALSO ERRED IN CONFIRMING ADDITIONS OF RS.19,845/ - AS DIFFERENCE IN BANK BALANCE WITHOUT CALLING FOR BANK RECONCILIATIONS. 5. THE LEARNED CIT APPEALS HAS ERRED IN NOT CONSIDERING THE BALANCE CONFIRMATION OF RS.1,99,284/ - ISSUED BY M/S. SHWETA RECORDING COMPANY BELGAUM THE BALANCE AS PER THE BOOKS OF BOTH THE PARTIES HAVE TALLIED AND BALANCE SHEET COPIES PRODUCED. 6. THE LEARNED CIT(A) HAS ERRED IN NOT CONSIDERING THE VARIOUS EVIDENCES AND SUBMISSIONS IN WRITING SUBMITTED ON 21 - 01 - 2014 AND 11 - 02 - 2014. 2 ITA NO . 144/PNJ/2014 - JM SHRI CHANDRAMOULI V KOTUR 3. THE ASSESSEE IS A DEALER OF ELECTRONIC GOODS IN THE NAME OF M/S. SANGAM RADIO HOUSE AT KHADE BAZAR, BELGAUM. DURING THE ASSESSMENT PROCEEDINGS THE AO HAS VERIFIED THE GEN UINENESS OF THE NUMEROUS SUNDRY CREDITOR S SHOWN IN THE BALANCE SHEET BY THE ASSESSEE . THE AO NOTICED THE FOLLOWING VARIATIONS/DISCREPANCIES IN RESPECT OF SUNDRY CREDITORS: - S.NO. NAME OF THE PARTY BALANCE AS PER ASSESSEE BALANCE AS PER PARTY DIFFERENCE 01 . M/S. ANAND MUSIC RS.1,47,390 RS.1,94,001 RS.53,389 02. M/S. KRUNAL ENTERTAINMENT PVT. LTD RS. 57,919 RS. 34,057 RS.23,862 03. M/S. CHANDRA VIDEO RS. 84,592 RS. 86,731 RS.2,139 04. M/S. SANGEETH SAGAR RS. 6,485 RS. 5,924 RS. 561 05. M/S. GEETH RS. 52,212 RS.18,983 RS.33,138 TOTAL RS.1,13,089 CONFIRMATIONS NOT FURNISHED/RECEIVED IN RESPECT OF FOLLOWING PARTIES 01. M/S. AKASH AUDIT RS. 86,497 RS. RS.86,497 02. M/S.GURUNANAK MARKETING RS. 2,88,172 RS. RS.2,88,172 0 3 . M/S. ASHVINI RECORDING COMPANY RS. 91,083 RS. RS.91,083 0 4 . M/S. MANORANJANELECTRONICS RS. 59,536 RS. RS.59,536 0 5 . M/S. RAGA TARANGINI RS. 51,400 RS. RS. 51,400 0 6 . M/S. SAREGAMA INDIA RS.3,81,717 RS. RS.3,81,717 07. M/S. SHWETA RECORDING RS.1,99,284 RS. RS.1, 99,284 TOTAL RS.11,57,689/ - 4 . THE ASSESSEE WAS ASKED TO RECONCILE THE SAID DIFFERENCE BETWEEN THE BALANCE SHOWN BY THE ASSESSEE AND BALANCE SHOWN BY THE PARTY. THE ASSESSEE HAS NOT FURNISHED THE ACCOUNT EXTRACTS/CONFIRMATIONS, NAME AND ADDRESSES OF THE SUNDRY CREDITORS TOTAL AMOUNTING TO RS.11,57,689/ - . THE AO, THEREFORE, ADDED THE DIFFERENCE IN RESPECT OF SUNDRY CREDITORS TO THE TUNE OF RS. 11,57,689/ - . 5 . MATTER CARRIED TO LD. CIT(A) AND CIT(A) HAS CONFIRMED THE ACTION OF THE AO. 6 . THE ASSE SSEE IS IN APPEAL AGAINST THE DECISION OF THE LD.CIT(A). 7 . WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. DURING THE COURSE OF HEARING BEFORE US THE LD.AR OF THE ASSESSEE HAS SUBMITTED A CHART A S ALSO THE PAPER BOOK. HE SUBMITTED THAT IN CAS E OF M/S. ANAND MUSIC THE AMOUNT OF RS.53,000/ - WAS WRITTEN BACK TO P & L ACCOUNT AND REMAINING AMOUNT RETURNED IN THE SUBSEQUENT ASSESSMENT YEAR . L EDGER IS ALSO ATTACHED IN PAPER BOOK - 2 AT PAGE 383. SIMILARLY, IN THE CASES OF M/S. KRUNAL ENTERTAINMENT PVT . LTD, M/S. 3 ITA NO . 144/PNJ/2014 - JM SHRI CHANDRAMOULI V KOTUR CHANDRA VIDEO, SANGEETH SAGAR , M/S. GEETH, M/S. AKASH AUDIO, M/S. GURUNANAK MARKETING, M/S. ASHIVINI RECORDING COMPANY, M/S. MANORANJAN ELECTRONICS, M/S. RAGA TARANGINI , M/S. SARAGAMA INDIA AND M/S. SHWETA RECORDING RESPECTIVE AMOUNTS WERE WRIT TEN BACK AND BALANCE AMOUNTS WERE RETURNED IN THE SUBSEQUENT YEAR. THEREFORE, NO ADDITION IS REQUIRED. THE LD.DR HAS OBJECTED TO IT AND PRAYED BEFORE US THAT THE AO SHOULD BE GIVEN AN OPPORTUNITY TO VERIFY THE BALANCE AMOUNT. WE ARE OF THE VIEW THAT THE ASSESSEE HAS SUBMITTED ALL THE ACCOUNTS BEFORE US FOR THE FIRST TIME BY WAY OF PAPER BOOK. WE FIND THAT THE AO HAD NO CHANCE TO VERIFY THE SAID BOOKS OF ACCOUNT AND LEDGER ACCOUNTS AS SUBMITTED BEFORE US. THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PL AY , WE RESTORE THE MATTER TO THE FILE OF THE AO. THE AO SHALL VERIFY THE ORIGINAL BOOKS OF ACCOUNT AND OTHER DOCUMENTS. HE IS DIRECTED TO DECIDE THE ISSUE AFRESH AS PER LAW AFTER GIVING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 7 - 01 - 2015 SD/ - SD/ - ( P. K. BANSAL ) ( D.T GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 7 - 01 - 2015 **PRADIP (SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. A PPELLANT 2 RESPONDENT 3. THE CIT(A) CONCERNED 4. 5. THE CIT CONCERNED THE D . R 6. GUARD FILE TRUE COPY, BY ORDER, ASSTT. REGISTRAR .