ACIT, Muzaffarnagar V. M/s. H.R.J. Steels (P) Ltd., Muzaffarnagar

ITA 1568/DEL/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7477 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 15-12-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 03-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Assessee Lawyers: K L ANEJA
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

ITA NO. 1568/DEL/2012 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C , NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI H.S. SIDHU, JUDICIAL MEMBER I.T.A. N O. 1568/DEL/2012 A.Y. : 2005 - 06 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 1, MUZAFFARNAGAR VS. M/S HRJ STEELS (P) LTD., 124, SOUTH BHOPA ROAD, MUZZAFARNAGAR (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. VIKRAM SAHAY, SR. DR ASSESSEE BY : SH. K.L. ANEJA, ADVOCATE DATE OF HEARING : 15 - 12 - 2014 DATE OF ORDER : 19 - 12 - 2014 ORDER PER H.S. SIDHU : J M TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE O RDER DATED 21.12.2011 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS ) , MUZAFFARNAGAR P ERTAINING TO ASSESSMENT YEAR 200 5 - 0 6 ON THE FOLLOWING GROUNDS: - 1. ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS. 22,47,000/ - MADE BY THE ASSESSING OFFICER UNDER SECTION 68 OF THE I.T. ACT, 1961 ON ACCOUNT OF UNSECURED LOANS A S THE ASSESSEE FAILED TO PROVE THE ITA NO. 1568/DEL/2012 2 CREDITWORTHINESS AND GENUINENESS OF TRANSACTION OF THE PERSONS / PARTIES BY IGNORING THE DECISION OF THE HON BLE COURT IN THE CASE SUMATI DAYAL VS. CIT (214 ITR 801) AND HON BLE HIGH COURT OF CHHATISGARH IN THE CASE O F KAUSHAL PRASAD MANHAR VS. CIT (2010) 236 CTR 192), WITHOUT APPRECIATING THE FULL FACTS OF THE CASE. 2. THE ORDER OF THE CIT(A) BE SET ASIDE AND THAT OF AO BE RESTORED. 2. THE BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF M.S. IGNOTS. RETURN DECLARING NIL INCOME WAS FILED ON 30.10.2004. ASSESSMENT IN THIS CASE WAS COMPLETED U/S. 143(3) ON 3.12.2007 DETERMINING INCOME AT RS. 8,49,210/ - WHEREIN THE AO BESIDES MAKING OTHER DISALLOWANCES / ADDITIONS UNDER VARIOUS HEADS, MADE ADDITION U/S. 68 OF THE ACT AT RS.22,47,000/ - BEING UNEXPLAINED CREDITORS. 3. AGAINST THE ABOVE ORDER PASSED BY THE ASSESSING OFF ICER, LD. CIT(A) VIDE IMPUGNED ORDER DATED 21.12.2011 DELETED THE ADDITIONS MADE BY THE ASSESSING OFFICER. 4. AGGRIEVED WITH THE ABOVE ORDER OF THE LD. CIT(A), REVENUE IS IN APPEAL BEFORE US. 5. LD. DR STATED THAT THE ADDITIONS MADE BY THE AO HAS BEEN DELETED BY THE LD. FIRST APPELLATE AUTHORITY WHICH IS CONTRARY TO THE FACTS OF THE PRESENT CASE AS WELL AS LAW. HE FURTHER STATED THAT THE LD. FIRST APPELLATE AUTHORITY HAS NOT DISCUSSED IN DETAIL ABOUT THE CREDITORS AND THE EVIDENCES FILED BY THE ASSESSE E BEFORE HIM AND WRONGLY DELETED THE ADDITION IN DISPUTE, THEREFORE, THE IMPUGNED ORDER IS NON SPEAKING AND IS NOT SUSTAINABLE IN THE EYES OF LAW. HE ITA NO. 1568/DEL/2012 3 REQUESTED THAT THE IMPUGNED ORDER MAY BE CANCELLED AND THE ORDER OF THE ASSESSING OFFICER MAY BE RESTOR ED. 5.1 ON THE OTHER HAND, LD. COUNSEL OF THE ASSESSEE RELIED UPON THE ORDER OF THE LD. FIRST APPELLATE AUTHORITY AND STATED THAT ALL THE CREDITORS ARE OLD CREDITORS DULY ACCOUNTED FOR IN THE BOOKS OF ACCOUNTS AND LD. FIRST APPELLATE AUTHORITY IN COMPLIA NCE OF THE DIRECTIONS OF THE ITAT HAS DELETE D THE ADDITION IN DISPUTE AFTER APPRECIATING THE EVIDENCE FILED BY THE ASSESSEE. HE HAS ALSO FILED A PAPER BOOK CONTAINING PAGES 1 TO 70 HAVING THE BRIEF FACTS AND SUBMISSIONS IN THE REVENUE S APPEAL; LD. CIT(A) ORDER DATED 15.3.2008; COPY OF FORM NO. 36 IN ITA NO. 2604/DEL/2008 PREFERRED BY REVENUE CHALLENGING THE DELETION OF RS. 2247000/ - ; COPY OF ITAT ORDER DATED 22.10.2010; ASSESSEE S APPLICATION UNDER RULE 18(4) OF APPELLATE TRIBUNAL RULES, 1963 BEFORE THE ITAT; ASSESSEE S WRITTEN SUBMISSION IN SET ASIDE PROCEEDINGS BEFORE THE CIT(A); COPIES OF STATEMENT OF INCOME, ASSESSMENT U/S 143(1) AND CONFIRMATION LETTER OF MS KAVITA MAHESHWARI AND CONFIRMATION LETTER OF MR. MOHIT MAHESHWARI. LD. COUNSEL OF THE ASSE SSEE REQUESTED THAT THE ORDER PASSED BY THE LD. CIT(A) MAY BE UPHELD. 6. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. WE ARE OF THE CONSIDERED VIEW THAT THE ASSESSEE HAS PRODUCED ALL THE RELEVANT EVIDENCES FOR SU BSTANTIATING ITS CLAIM AND REQUIREMENT OF SECTION 68 HAS BEEN FULFILLED . THE ASSESEE HAD DISCHARGED ITS ONUS BY FILING THE NECESSARY DOCUMENTARY EVIDENCE S IN SUPPORT OF LOAN MONEY RECEIVED. WE FIND THAT LD. CIT(A) HAS DELETED THE ADDITION IN DISPUTE BY CITING VARIOUS DECISIONS RENDERED BY THE HON BLE SUPREME COURT AS WELL AS THE AND HON BLE HIGH COURT IN THE IMPUGNED ORDER. AFTER GOING THROUGH THE SAME, WE ARE OF THE VIEW THAT NO INTERFERENCE IS CALLED FOR ON OUR PART IN THE WELL REASONED ORDER PAS SED BY THE LD. CIT(A). ITA NO. 1568/DEL/2012 4 HENCE, WE UPHELD THE ORDER OF THE LD. CIT(A) BY DISMISSING THE APPEAL FILED BY THE REVENUE. 7 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE O PEN C OURT ON 19 / 12 /20 1 4 . SD/ - SD/ - [ G. D. AGRAWAL ] [ H.S. SIDHU ] VICE PRESIDENT JUDICIAL MEMBER DATE 19 / 12 /201 4 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES ITA NO. 1568/DEL/2012 5