A.B.C.Fuelling Station, Mandapeta V. THE ITO, Kakinada

ITA 15/VIZ/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8984 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 20-01-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI D. MANMOHAN, HONBLE VICE-PRESIDENT ITA NO. 15/VIZ/2016 (ASST. YEAR : 2005-06) M/S. A.B.C. FUELLING STATION, MANDAPETA, E.G. DISTRICT. VS. ITO, WARD-1, KAKINADA. PAN NO. ABJFA 5470 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. SUBRAHMANYAM - FCA. DEPARTMENT BY : SHRI M.K. SETHI SR. DR DATE OF HEARING : 04/05/2017. DATE OF PRONOUNCEMENT : 04/05/2017. O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A)-2, VISAKHAPATNAM AND IT PERTAINS TO ASSESSMENT YEAR 2005-06. 2. THE ADDITION MADE TOWARDS UNEXPLAINED CASH CREDITS IS THE SUBJECT MATTER OF DISPUTE BEFORE THE TRIBUNAL. 3. THE CASE OF THE ASSESSING OFFICER WAS THAT THE ASSESSEE FAILED TO PROVE THE IDENTITY OF THE CREDITORS, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTIONS. HE, THEREFORE, ADDED A SUM OF 3,96,000/- AND 54,000/- UNDER SECTION 68 OF THE ACT. 4. AGGRIEVED ASSESSEE CONTENDED BEFORE THE LD. CIT(A) THAT THE ASSESSEE HAVING PRODUCED THE CREDITORS SRI P. SRINIVAS, SRI PUTTA 2 ITA NO. 15/VIZ/2016 (M/S. A.B.C. FUELLING STATION) NARAYANA RAO AND SRI NETHALA LAZAR BEFORE THE ASSESSING OFFICER AND THE INITIAL BURDEN CAST UPON THE ASSESSEE IS DISCHARGED. THE LD.CIT(A) OBSERVED THAT THOUGH THE CREDITORS WERE PRODUCED, THE OTHER INFORMATION, SUCH AS CLAIM OF TAKING LAND ON LEASE AND EARNING AGRICULTURAL INCOME AS WELL AS SAVINGS COULD NOT BE PROVED. IN OTHER WORDS, CREDITWORTHINESS OF THE CREDITORS WAS NOT PROVED. HE, THEREFORE, CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. FURTHER AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. EVEN AT THIS STAGE, EXCEPT STATING THAT THE CREDITORS FILED CONFIRMATION LETTERS, NO OTHER MATERIAL WAS PRODUCED TO CONTRADICT THE FINDINGS OF THE TAX AUTHORITIES. UNDER THESE CIRCUMSTANCES, I AM OF THE VIEW THAT THE ORDER PASSED BY THE LD. CIT(A) DO NOT CALL FOR ANY INTERFERENCE. 7. IN THE RESULT, AS PRONOUNCED IN THE OPEN COURT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. SD/- (D. MANMOHAN) VICE-PRESIDENT DATED : 04 TH MAY, 2017. VR/- COPY TO: 1. THE ASSESSEE M/S. A.B.C. FUELLING STATION, MANDAPETA, E.G. DISTRICT. 2. THE REVENUE ITO, WARD-1, KAKINADA. 3. THE CIT-2, VISAKHAPATNAM. 4. THE CIT(A)-1, VISAKHAPATNAM. 5. THE D.R., VISAKHAPATNAM. 6. GUARD FILE. BY ORDER