Pam Media Private Ltd, Vijayawada V. ACIT, Vijayawada

ITA 146/VIZ/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7113 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 06-12-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 16-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Assessee Lawyers: Y SURYACHANDRA RAO
• Keywords: Additional evidence

Judgement Text

ITA NO.146 OF 09 PAM MEDIA PVT. LTD, VJA PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.146/VIZAG/2009 ASSESSMENT YEAR: 2000-01 PAM MEDIA PRIVATE LTD VIJAYAWADA VS. ACIT, CENTRAL CIRCLE VIJAYAWADA (APPELLANT) PAN NO: AABCP 7454M (RESPONDENT) APPELLANT BY: SHRI Y. SURYACHANDRA RAO, CA RESPONDENT BY: SHRI D.S. SUNDER SINGH, SR.DR ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 09-01- 2009 PASSED BY LEARNED CIT(A)-I, HYDERABAD AND IT RE LATES TO THE ASSESSMENT YEAR 2001-02. 2. THOUGH THE ASSESSEE HAS RAISED AS MANY AS SI X GROUNDS, IT WAS STATED BY LEARNED A.R THAT ALL OF THEM ARE RELATED TO THE ADDITION OF RS.11,23,162/- CONFIRMED BY LEARNED CIT(A). 3. THE FACTS RELATING TO THE SAID ADDITION ARE STATED IN BRIEF. THE ASSESSEE IS DOING ADVERTISEMENT BUSINESS AND BELONG S TO PARAKASH ARTS GROUP. A SEARCH OPERATION WAS CONDUCTED IN THAT GR OUP ON 12.10.2004, CONSEQUENT THERE TO A NOTICE UNDER SECTION 153C WAS ISSUED UPON THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION. DURING THE COURSE OF SEARCH PROCEEDINGS, IT WAS NOTICED THAT THE ASSESSEE HAS S HOWN THE AMOUNT RECEIVABLE FROM A CONCERN NAMED M/S PRAKASH ARTS MO VING MEDIA AS RS.14,75,325/-, WHERE AS THE SAID CONCERN HAD SHOWE D THE AMOUNT PAYABLE TO THE ASSESSEE AS RS.25,98,487/-. THUS THERE WAS A DIFFERENCE OF RS.11,23,162/- BETWEEN THE BALANCES. HOWEVER, THE ASSESSEE COULD NOT RECONCILE THE DIFFERENCE FOR CERTAIN REASONS STATED BY IT BEFORE THE ASSESSING ITA NO.146 OF 09 PAM MEDIA PVT. LTD, VJA PAGE 2 OF 3 OFFICER. HOWEVER, ON VERIFICATION OF THE ASSESSMEN T RECORD OF M/S PRAKASH ARTS MOVING MEDIA, IT WAS NOTICED THAT THE ASSESSEE HEREIN HAD ISSUED A CONFIRMATION LETTER CERTIFYING THAT A SUM OF RS.25, 98,487/- AS THE AMOUNT RECEIVABLE FROM M/S PRAKASH ARTS MOVING MEDIA. THE SAID CONFIRMATION WAS SIGNED BY SHRI G.RAMESH, THE MANAGING DIRECTOR OF T HE ASSESSEE. IN VIEW OF THE ABOVE, THE ASSESSING OFFICER ADDED THE DIFFE RENCE AMOUNT OF RS.11,23,162/- IN THE HANDS OF THE ASSESSEE. BEFO RE LEARNED CIT(A), NONE APPEARED AND THE FIRST APPELLATE AUTHORITY ALSO CON FIRMED THE SAID ADDITION. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE ASSESSEE HAS FILED ADDITIONAL EVIDENCES IN THE FORM OF RECONCILIATION STATEMENT BETWEEN THE ACCOUNTS OF TW O PARTIES AND PRAYED FOR ADMISSION OF THE SAME. IN THE PETITION IT IS STATED THAT, DURING THE COURSE OF ASSESSMENT PROCEEDING, THE ASSESSEE DID NOT HAVE TH E ACCOUNT COPY AS AVAILABLE IN THE BOOKS OF M/S PRAKASH ARTS MOVING M EDIA IN ORDER TO PREPARE THE RECONCILIATION STATEMENT, AS THE DATA IN THE CO MPUTER GOT CORRUPTED AND THE RELATIONSHIP OF THE ASSESSEE WITH M/S PRAKASH A RTS MOVING MEDIA WAS ALSO GOT STRAINED. ACCORDINGLY IT IS SUBMITTED THA T THE ASSESSEE COULD NOT RECONCILE THE DIFFERENCE AT THE TIME OF PROCEEDINGS THE TAX AUTHORITIES. ACCORDINGLY IT IS PRAYED THAT THE ADDITIONAL EVIDEN CES BE ADMITTED. 5. WE ALSO NOTICE THAT THE ASSESSEE HAS PREPARE D THE RECONCILIATION STATEMENT AND THE DIFFERENCE WAS MAINLY DUE TO THE RECEIPT OF TWO CHEQUES BY THE ASSESSEE. HOWEVER, SINCE THE ASSESSEE COULD NOT PRODUCE THIS RECONCILIATION STATEMENT BEFORE THE TAX AUTHORITIES , IT WOULD BE PROPER THAT THE SAME SHOULD BE EXAMINED BY THE ASSESSING OFFICE R ALONG WITH THE ACCOUNT COPIES OF BOTH THE PARTIES. FURTHER THE IM PUGNED ADDITION IS MAINLY ON ACCOUNT OF THE DIFFERENCE IN BALANCES, THE RECON CILIATION STATEMENT NOW FILED BEFORE US BECOMES AN IMPORTANT DOCUMENT AND I N THAT VIEW OF THE MATTER THE IMPUGNED ISSUE ALSO REQUIRES RE-EXAMINAT ION. HOWEVER, WE NOTICE THAT THE ASSESSEE DID NOT APPEAR BEFORE THE LEARNED CIT(A) AND BEFORE THE ASSESSING OFFICER, THE ASSESSEE COULD NO T FURNISH VALID REASONS FOR NON-FURNISHING THE RECONCILIATION STATEMENT. HE NCE, IN ORDER TO ITA NO.146 OF 09 PAM MEDIA PVT. LTD, VJA PAGE 3 OF 3 DISCOURAGE THIS KIND OF PRACTICE OF SUBMITTING ADDI TIONAL EVIDENCES BEFORE THE TRIBUNAL WITHOUT PROPER REASONS, WE THINK IT PR OPER TO IMPOSE A COST OF RS.10,000/- UPON THE ASSESSEE, WHICH SHALL BE PAID BY THE ASSESSEE WITHIN FIFTEEN DAYS FROM THE DATE OF RECEIPT OF THIS ORDER INTO THE ACCOUNT IN WHICH THE TRIBUNAL FEE IS PAID. SUBJECT TO THE PAYMENT OF THE ABOVE CITED COST OF RS.10,000/-, WE SET ASIDE THE ORDER OF LEARNED CIT( A) ON THE IMPUGNED ISSUE AND RESTORE THE SAME TO THE FILE OF ASSESSING OFFICER WITH A DIRECTION TO CONSIDER THE ISSUE AFRESH IN ACCORDANCE WITH LAW , BY DULY TAKING INTO CONSIDERATION THE RECONCILIATION STATEMENT FILED BY THE ASSESSEE AND SUCH OTHER INFORMATION/EXPLANATIONS THAT MAY BE CALLED F OR FROM THE ASSESSEE IN THIS REGARD. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE: 18-03-2011 COPY TO 1 M/S. PAM MEDIA PRIVATE LIMITED, D.NO.27-20-30, MU SEUM ROAD, GOVERNORPET, VIJAYAWADA-520 002. 2 THE ACIT, CENTRAL CIRCLE, VIJAYAWADA 3 4. THE CIT HYDERABAD THE CIT(A)-I, HYDERABAD 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM