The Income Tax Officer, Ward - 1(3), Guntur V. Sumedha Cotton Ginning & Pressing Mills, , Guntur

ITA 158/VIZ/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3766 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-06-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 08-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V APPLA RAJU
• Section: 143(3); 143(1); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 158 / VIZ /201 9 (ASST. YEAR : 20 15 - 16 ) ITO, WARD - 1(3), GUNTUR. V S . M/S. SUMEDHA COTTON GINNING & PRESSING MILLS , D.NO. 7 - 13 - 4, 6 TH LANE, VALLURIVARI THOTA, GUNTUR. PAN NO. ACIFS 4832 J (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI I. KAMA SASTRY FC A. DEPARTMENT BY : SHRI V. APPLA RAJU SR. DR DATE OF HEARING : 14 / 0 8 /201 9 . DATE OF PRONOUNCEMENT : 30 / 0 8 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , GUNTUR , DATED 2 1 /0 1 /201 9 FOR THE ASSESSMENT YEAR 20 15 - 16 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE - FIRM ENGAGED IN THE BUSINESS OF PURCHASE AND SALE OF LINT, FILED ITS E - RETURN OF INCOME DECLARING LOSS OF RS. 33,68,196/ - . THE RETURN FIELD BY THE ASSESSEE WAS PROCESSED U/SEC. 143(1) OF THE INCOME TAX ACT, 2 ITA NO. 158/VIZ/2019 ( M/S. SUMEDHA COTTON GINNING & PRESSING MILLS ) 1961 (HEREINAFTER REFERRED TO AS 'ACT') . SUBSEQUENTLY, CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY UNDER CASS AND ASSESSMENT WAS COMPLETED U/SEC. 143(3) R.W.S. 144 OF THE ACT. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS NOTED THAT SUNDRY CREDITORS TO THE TUNE OF RS. 75, 38,976/ - AND SUNDRY DEBTORS TO THE TUNE OF RS. 1,01,35,958/ - WERE RE F LECTED IN THE BALANCE SHEET . IN THE ABSENCE OF ANY PROOF /CONFIRMATIONS, THE SAME ARE ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 3 . ON APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE HAS FILED THE CONFIRMATION LETTERS , WHICH WERE FORWARDED TO THE ASSESSING OFFICER FOR HIS COMMENTS AND AFTER RECEIVING THE REMAND REPORT, THE LD. CIT(A) HAS OBSERVED THAT THE ASSESSEE FILED CONFIRMATION LETTERS AND DETAILS, WHICH HAVE BEEN VERIFIED BY THE ASSESSING OFFICER IN REMAND PROCEEDINGS . THE ASSESSING OFFICER AND THE RANGE HEAD AFTER VERIFICATION FELT THAT THE SUNDRY CREDITORS AND DEBTORS ARE GENUINE ONE . ACCORDINGLY, THE ADDITION MADE BY THE ASSESSING OFFICER IS DELETED . 4 . BEFORE US , LD.DR RELIED ON THE GROUNDS OF APPEAL, WHEREAS LD. AR RELIED ON THE ORDER OF THE LD. CIT(A). 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 3 ITA NO. 158/VIZ/2019 ( M/S. SUMEDHA COTTON GINNING & PRESSING MILLS ) 6 . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE NEITHER APPEARED NOR FILED CONFIRMATIONS BEFORE THE ASSESSING OFFICER , THEREFORE, THE ASSESSING OFFICER HAS NO OCCASION TO CONSIDER THE SAME AND MADE THE ADDITION. ON APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE HAS FILED THE CONFIRMATION LETTERS IN RESPECT OF SUNDRY CREDITORS AND DEBTORS. THE LD. CIT(A) AFTER CALLING THE REMAND REPORT AND CONSIDERING THE FINDINGS OF THE ASSESSING OFFICER OBSERVED THAT SUNDRY CREDITORS AND DEBTORS ARE GENUINE, THEREFORE DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION. WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY TH E LD. CIT(A). THUS, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. 7 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 3 0 T H DAY OF AUGUST , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 3 0 T H AUGUST , 201 9 . VR/ - 4 ITA NO. 158/VIZ/2019 ( M/S. SUMEDHA COTTON GINNING & PRESSING MILLS ) COPY TO: 1. THE ASSESSEE M/S. SUMEDHA COTTON GINNING & PRESSING MILLS, D.NO. 7 - 13 - 4, 6 TH LANE, VALLURIVARI THOTA, GUNTUR. 2. THE REVENUE ITO, WARD - 1(3), GUNTUR. 3. THE PR. CIT , GUNTUR. 4. THE CIT(A) - 1, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.