DCIT, CC-III, Ludhiana V. M/s Brijeshwari Textiles Pvt. Ltd., Ludhiana

ITA 1530/CHANDI/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6247 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-08-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 06-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C CHANDRAKANTA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1530/CHD/2017 ! / ASSESSMENT YEAR : 2013-14 THE DCIT, CENTRAL CIRCLE-III, LUDHIANA '# M/S BRIJESHWARI TEXTILES P. LTD., 8-L, MODEL TOWN, LUDHIANA $ % ./PAN NO: AACCB7479H $&/ APPELLANT ()$& /RESPONDENT HEARING THROUGH VIDEO CONFERENCING *+ , - /ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE , - / REVENUE BY : SMT. C. CHANDRAKANTA, CIT DR . / , +0% /DATE OF HEARING : 25.08.2020 12! , +0% / DATE OF PRONOUNCEMENT : 27.08.2020 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 10.08.2017 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-5, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)] . 2. THE REVENUE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THE LD. CIT (A), LUDHIANA HAS ERRED IN LAW 1.0 DELE TE THE ADDITION OF RS.28,45,19,500/- ON ACCOUNT OF DIFFERENCES OF BALA NCES IN THE PARTIES ACCOUNTS DESPITE THE FACT THAT THE ASSESSEE HAD FAI LED TO FILE ANY DETAILS BEFORE THE ASSESSING OFFICER EVEN AFTER GIVING REPE ATED OPPORTUNITIES. 2 ITA NO. 1530-CHD/2017 - M/S BRIJESHWARI TEXTILES PVT LTD., LUDHIANA THE ACCOUNTS OF THE ASSESSEE WHEREIN DIFFERENCES WE RE NOTICED WERE DULY AUDITED AND SIGNED BY THE AUDITORS. THE CIT(A) HAS ACCEPTED THE RECONCILIATION WITHOUT CONFRONTING THE SAME TO THE AO IN VIOLATION OF RULE 46A. WITHOUT PREJUDICE NO INDEPENDENT ENQUIRY WAS MADE THROUGH BANKS TO RECONCILE THE ACCOUNTS OF THE PART IES. 2. THE LD. CIT (A), LUDHIANA HAS ERRED IN LAW TO DELET E THE ADDITION OF RS.26,76,86,850/- ON ACCOUNT OF SUNDRY PAYABLE AND SHARE APPLICATIONS MONEY REGARDING METRO SYNTHETICS & VAS U TRADING COMPANY AS BOTH ARE PAPER COMPANIES WITH NO WORTH O F ITS OWN. 3. THE LD. CIT (A), LUDHIANA HAS ERRED IN LAW TO DELET E THE ADDITION OF RS.21,227/-ON ACCOUNT OF COMMISSION INCOME DESPITE CONSIDERING THE FACT THAT AO HAS PROVED THAT ASSESSEE IS MERELY AN ENTRY PROVIDER AND ASSESSEE'S BOOKS ARE NOT RELIABLE, HENCE AO HAS REJ ECTED ASSESSEE'S BOOKS OF ACCOUNT. 4. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROU NDS OF APPEAL O BEFORE IS HEARD AND DISPOSED OFF. 3. AT THE OUTSET , THE LD. COUNSEL FOR THE ASSESSEE-RESPONDENT HAS SUBMITTED THAT THE ISSUE INVOLVED IN THIS APPEAL IS REGARDING THE RECONCILIATION OF THE DIFFERENCES ON ACCOUNT OF BAL ANCES IN THE PARTIES ACCOUNTS, ON ACCOUNT OF SUNDRY PAYABLE SHARE APPLI CATION MONEY AND ON ACCOUNT OF COMMISSION INCOME. THE LD. COUNSEL FOR T HE ASSESSEE HAS INVITED OUR ATTENTION TO THE IMPUGNED ORDER OF THE CIT(A) TO SHOW THAT THE AFORESAID DIFFERENCE IN BALANCES IN THE PARTIES ACCOUNTS AND OTHER RELATED ISSUES HAVE BEEN THOROUGHLY LOOKED INTO BY THE CIT(A) AND ALL THE ACCOUNTS, RECEIPTS AND PAYMENTS STOOD DULY RECO NCILED BEFORE THE LD. CIT(A) NOT ONLY FROM THE ACCOUNTS OF THE ASSESSEE B UT ALSO FROM THE ACCOUNTS OF THE OTHER PARTIES. THE LD. COUNSEL FOR THE ASSESSEE HAS FURTHER SUBMITTED THAT IDENTICAL ADDITIONS WERE MAD E BY THE ASSESSING 3 ITA NO. 1530-CHD/2017 - M/S BRIJESHWARI TEXTILES PVT LTD., LUDHIANA OFFICER IN THE CASE OF OTHER PARTIES WITH WHOM THE TRANSACTIONS WERE MADE ON IDENTICAL GROUNDS OF DIFFERENCE IN BALANCES ETC., WHICH WERE DULY RECONCILED BY THE OTHER PARTIES AS WELL AS SIS TER CONCERNS OF THE APPELLANT AND THE ADDITIONS IN ALL THE CASES ACCORD INGLY WERE ORDERED TO BE DELETED BY THE CIT(A) VIDE DETAILED IMPUGNED OR DER OF THE CIT(A). 4. THE LD. COUNSEL HAS FURTHER INVITED OUR ATTENTIO N TO THE COMMON ORDER OF THE TRIBUNAL DATED 10.6.2020 PASSED IN BUN CH OF APPEALS WITH LEAD CASE IN ITA NO.1118/CHD/2017 FOR ASSESSMENT YE AR 2013-14 IN THE CASE OF DCIT VS SHRI VASU KALIA PROP. M/S KALIA T RADING COMPANY, LUDHIANA & OTHERS TO SUBMIT THAT IN THE CASES OF OTHER PARTIES, THE APPEALS WERE FILED BY THE DEPARTMENT WHICH HAVE BEE N DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE VIDE CONSOLIDAT ED ORDER DATED 10.6.2020 (SUPRA) DISMISSING THE SAID APPEALS FILE D BY REVENUE. THE LD. COUNSEL HAS FURTHER SUBMITTED THAT THE TRAN SACTIONS RELATED TO THE ASSESSEE COMPANY WITH THE SAID PARTIES WERE DULY CONSIDERED AND RECONCILED IN THOSE CASES ALSO. HE, THEREFORE, HAS SUBMITTED THAT ALL THE ISSUES RAISED BY THE DEPARTMENT STOOD DULY COVERED BY THE DECISION OF THE TRIBUNAL DATED 10.6.2020 PASSED VIDE COMMON ORD ER WITH THE LEAD CASE IN ITA NO.1118/CHD/2017 FOR ASSESSMENT YEAR 20 13-14 IN DCIT VS SHRI VASU KALIA PROP. M/S KALIA TRADING COMPANY, LU DHIANA & OTHERS (SUPRA). 4 ITA NO. 1530-CHD/2017 - M/S BRIJESHWARI TEXTILES PVT LTD., LUDHIANA 5. THE ONLY CONTENTION RAISED BY THE LD. DR IN THIS CASE IS THAT THE LD. CIT(A) DULY ACCEPTED THE RECONCILIATION SUBMITT ED BY THE ASSESSEE WITHOUT CONFRONTING THE SAME TO THE ASSESSING OFFIC ER IN VIOLATION OF RULE 46A OF THE INCOME TAX RULES, 1962. HOWEVER, A PERUSAL OF THE IMPUGNED ORDER OF THE CIT(A) REVEALS THAT THE RECO NCILIATION FURNISHED BY THE ASSESSEE WAS DULY FORWARDED BY LD. CIT(A) T O THE ASSESSING OFFICER FOR HIS REPORT AND THAT THE ORDER HAS BEEN PASSED BY THE LD. CIT(A) AFTER CONSIDERING THE REMAND REPORT FURNISHE D BY THE ASSESSING OFFICER. FURTHER THE DIFFERENCES IN THE ACCOUNTS OF THE VARIOUS PARTIES HAVE BEEN DULY EXAMINED, CONSIDERED AND RECONCILED BEFORE THE LD. CIT(A). WE, THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). ALL THE ISSUES RAISED IN THIS APPEAL SINCE DULY STA NDS COVERED IN FAVOUR OF THE ASSESSEE BY THE CONSOLIDATED ORDER OF THE TRIBUNAL DATED 10.6.2020 (SUPRA), WE DO NOT FIND ANY MERIT IN THIS APPEAL AND THE SAME IS ACCORDINGLY DISMISSED. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED ON 27.08.2020 SD/- SD/- ( . . / N.K. SAINI) ( ! / SANJAY GARG) '#$ / VICE PRESIDENT %& / JUDICIAL MEMBER DATED : 27.08 .2020 .. 3,(+45 65!+ / COPY OF THE ORDER FORWARDED TO : 5 ITA NO. 1530-CHD/2017 - M/S BRIJESHWARI TEXTILES PVT LTD., LUDHIANA 1. $& / THE APPELLANT 2. ()$& / THE RESPONDENT 3. . 7+ / CIT 4. . 7+ ( )/ THE CIT(A) 5. 58(+9 , 09 , :;<= / DR, ITAT, CHANDIGARH 6. <>/ / GUARD FILE 3 . / BY ORDER, ? / ASSISTANT REGISTRAR