Sunrays Engineers Pvt. Ltd., Delhi V. ITO, New Delhi

ITA 1621/DEL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2912 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 20-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K JIWANI
• Assessee Lawyers: SUBHASH GUPTA
• Keywords: Opportunity of being heard; Accommodation entries
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.1621/DEL./2017 ASSESSMENT YEAR 2007-2008 SUNRAYS ENGINEERS PVT. LTD., 2527, OUTSIDE TURKMAN GATE, DELHI 110 006. PAN AACCS0170N VS. THE INCOME TAX OFFICER, WARD 24(3), ROOM NO.2251, C.R. BUILDING, I.P. ESTATE, NEW DELHI002 (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SUBHASH GUPTA, ADVOCATE FOR REVENUE : SHRI V.K. JIWANI, SR.D.R. DATE OF HEARING : 05.03.2018 DATE OF PRONOUNCEMENT : 07 .03.2018 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-22, NEW DELHI, DATED 12 TH JANUARY, 2017, FOR THE A.Y. 2007-2008, CHALLENGING THE ADDIT ION OF RS.19 LAKHS ON ACCOUNT OF UNSECURED LOANS. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT A.O. IN ITIATED RE- ASSESSMENT PROCEEDINGS IN THIS CASE BECAUSE INFORMA TION WAS RECEIVED ABOUT ENTRY OPERATOR AND THEIR BENEFICIARI ES FOR TAKING 2 ITA.NO.1621/DEL./2017 SUNRAYS ENGINEERS PVT. LTD., DELHI. ACCOMMODATION ENTRIES. IN THE CASE OF THE ASSESSEE, THE A.O. IN THE REASONS MENTIONED THAT ASSESSEE HAS TAKEN AN AM OUNT OF RS.5 LAKHS FROM EURO ASIA VENTURE CAPITAL, BUT, ASS ESSEE LATER ON, SUBMITTED AN AFFIDAVIT THAT IT HAS NOT RECEIVED ANY CREDIT FROM THAT PARTY, THEREFORE, NO ADVERSE INFERENCE CO ULD BE DRAWN. ON THE REMAINING AMOUNTS OF RS.19 LAKHS TAKEN FROM M/S. HILLRIDGE INVESTMENTS PRIVATE LIMITED AND SHALINI H OLDINGS, THE A.O. ASKED THE ASSESSEE TO PRODUCE THESE PARTIES FO R CONFIRMATION. BUT, DESPITE GIVING AMPLE OPPORTUNITY , ASSESSEE DID NOT PRODUCE THE PARTIES FOR VERIFICATION OF THE LOANS. THE A.O. ACCORDINGLY, MADE THE ADDITION OF RS.19 LAKHS UNDER SECTION 68 OF THE I.T. ACT, 1961. 3. THE LD. CIT(A), ON THE SAME REASONING THAT ASSE SSEE FAILED TO PRODUCE THE CREDITORS FOR EXAMINATION ON OATH, CONFIRMED THE ADDITION AND DISMISSED THE APPEAL OF ASSESSEE. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I AM O F THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT TH E LEVEL OF THE A.O. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THA T ASSESSEE 3 ITA.NO.1621/DEL./2017 SUNRAYS ENGINEERS PVT. LTD., DELHI. HAS REPAID THE LOAN RECEIVED AND INTEREST TO THE CR EDITORS WHICH WAS SUBJECTED TO TDS. LEARNED COUNSEL FOR THE ASSES SEE FURTHER SUBMITTED THAT BOTH CREDITORS ARE IN EXISTENCE AND ASSESSEE IS WILLING TO PRODUCE BOTH THE CREDITORS BEFORE A.O. F OR EXAMINATION. THE LD. CIT(A) IN THE APPELLATE ORDER HAS MENTIONED THAT REMAND REPORT FROM THE A.O. WAS CALL ED FOR IN WHICH A.O. HAS REPORTED THAT SUMMONS WERE ISSUED TO THE PRINCIPAL OFFICER/DIRECTORS OF THESE COMPANIES, BUT , SUMMONS WERE NOT COMPLIED WITH. THE REMAND REPORT WAS MADE AVAILABLE TO THE ASSESSEE AND ASSESSEE MERELY CONTENDED THAT LOAN AMOUNT HAVE BEEN REPAID WITH INTEREST. IT WOULD, TH EREFORE, SHOW THAT THE CREDITORS DID NOT APPEAR BEFORE A.O. FOR EXAMINATION ON OATH AS WAS ALSO DIRECTED AT THE ORI GINAL ASSESSMENT STAGE. LEARNED COUNSEL FOR THE ASSESSEE HAS NOW MADE A STATEMENT BEFORE THE TRIBUNAL THAT ASSESSEE WOULD PRODUCE DIRECTORS/CONCERNED OFFICERS OF BOTH THE CR EDITORS BEFORE THE A.O. FOR EXAMINATION ON OATH OF HIS OWN AND ON HIS OWN EXPENSES. THEREFORE, I AM OF THE VIEW THAT ONE MORE CHANCE MAY BE GIVEN TO THE ASSESSEE TO PRODUCE THE CONCERN ED PERSONS 4 ITA.NO.1621/DEL./2017 SUNRAYS ENGINEERS PVT. LTD., DELHI. OF BOTH THE CREDITORS BEFORE A.O. FOR EXAMINATION O N OATH, IN ORDER TO VERIFY THE GENUINENESS OF THE TRANSACTION BETWEEN THE ASSESSEE AND THE CREDITORS. IN THIS VIEW OF THE MAT TER, I SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE MATTER IN ISSUE TO THE FILE OF A.O. WITH A DIRECTION TO THE A SSESSEE TO PRODUCE THE DIRECTORS/CONCERNED OFFICERS OF BOTH TH E CREDITORS BEFORE THE A.O. WITH ALL RELEVANT DOCUMENTS FOR EXA MINATION ON OATH ON HIS OWN RISK AND EXPENSES. THE A.O. THEREAF TER, SHALL PASS A REASONED ORDER IN ACCORDANCE WITH LAW, BY GI VING REASONABLE, SUFFICIENT OPPORTUNITY OF BEING HEARD T O THE ASSESSEE. THE ASSESSEE SHALL NOT ASK FOR UNNECESSAR Y ADJOURNMENTS. ACCORDINGLY, APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) DELHI, DT. 07 TH MARCH, 2018. JUDICIAL MEMBER VBP/- 5 ITA.NO.1621/DEL./2017 SUNRAYS ENGINEERS PVT. LTD., DELHI. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.