Sh. Rakesh Kumar Gupta, Shivpuri V. I.T.O., Shivpuri

ITA 167/AGR/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0473 (ITAT-AGRA)
• Duration Of Justice: 7 year(s) 22 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-07-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 24-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Assessee Lawyers: K C AGARWAL
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 205; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO.167/AGRA/2012 ASSESSMENT YEAR: 2007-08 SHRI RAKESH KUMAR GUPTA, VS. INCOME TAX OFFICER, PROP. M/S. MANGAL TRADERS, SHIVPURI. KOLARAS, DISTT. SHIVPURI. (PAN : ABKPG 3103 D). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.C. AGARWAL, ADVOCATE RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 02.07.2013 DATE OF PRONOUNCEMENT : 05.07.2013 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 24.02.2012 PASSED BY THE LD. CIT(A), GWALIOR FOR THE A.Y. 2007 -08. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. THAT THE LD COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN CONFIRMING THE ADDITION OF RS.2634300/-, WHEREAS TH E APPELLANT PRODUCED THE COMPLETE DETAILS AND OTHER EVIDENCES T O PROVE THE GENUINENESS OF SUNDRY CREDITORS AND LD. CIT (APPEAL S), GWALIOR WITHOUT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE CONFIRMED 2 ITA NO.167/AGRA/2012 A.Y. 2007-08 THE ADDITIONS. HENCE THE ADDITION OF RS.2634300/- IS AGAINST THE LAW AND DESERVES TO BE DELED. 2. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN CONFIRMING THE ADDITION OF RS.2634300/- ON ACCOUNT OF UNEXPLAINED SUNDRY CREDITORS WHERE THE AO HAS ACCEPTED THE PURC HASES, SALES, ALSO THE TRADING RESULTS DISCLOSED BY THE ASSESSEE. THE QUESTION OF ADDITION OF THE SAID TWO AMOUNTS U/S 68 DID NOT ARISE IN AS MUCH AS THE PROVISION OF SECTION 68 WOULD NOT BE ATTRACTED ON P URCHASES MADE ON CREDIT. HENCE THE ADDITION OF RS.2634300/- DESERVE S TO BE DELETED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN THE WHOLESALE BUSINESS OF GRAIN AND OIL SEEDS. THE ASSESSEE HAS FILED RETURN OF INCOME DECLARING INCOME OF RS.96,810/-. DURING THE ASSESSMENT PROCE EDINGS, THE A.O. NOTICED THAT THE ASSESSEE HAS SHOWN SUNDRY CREDITORS OF RS.31,14 ,302/-. THE A.O. ASKED THE ASSESSEE TO FURNISH CERTIFIED COPIES OF ACCOUNT OF SUCH CREDITORS AND ALSO ASKED THE ASSESSEE TO GIVE FULL POSTAL ADDRESS AND OTHER DETA ILS. THE A.O. NOTICED THAT APART FROM OTHER SUNDRY CREDITORS, SUNDRY CREDIT INCLUDIN G RS.1,80,000/- IN THE NAME OF GANESH RICE MILL, SHIVPURI. THE SAID CREDITOR HAS B EEN SHOWN AGAINST PURCHASE OF 200 QUINTALS OF WHEAT MADE ON 09.05.2006 FOR RS.1,8 0,000/-. THE A.O. MADE ADDITION OF RS.1,80,000/-. THE ASSESSEE HAS FAILED TO FURNISH CONFIRMATION AND OTHER DETAILS. THE RELEVANT FINDING OF THE A.O. IS REPRODUCED AS UNDER :- RS.1,80,000/- HAS BEEN SHOWN IN THE NAME OF GANESH RICE MILL SHIVPURI. THE SAID CREDITOR HAS BEEN SHOWN AGAINST PURCHASE OF 200 QTL. WHEAT MADE ON 09/05/2006 FOR RS.1,80,000/-. N O CONFIRMATION FROM THIS CREDITOR IS FURNISHED NOR HAS HIS CERTIFI ED COPY OF ACCOUNT BEEN FURNISHED. THE AMOUNT DUE FOR THE GOODS PURCH ASED IS LYING 3 ITA NO.167/AGRA/2012 A.Y. 2007-08 PENDING FOR MORE THAN 10 MONTHS. AS PER THE TREND AND SYSTEM OF PAYMENT PREVAILING IN THE AREA THE PAYMENT OF GOODS ARE MADE FROM 30 TO 60 DAYS. IN THIS CASE THE PAYMENT IS DUE FOR MORE THAN 10 MONTHS AND NO CONFIRMATION OF BALANCE HAS BEEN FILE D, THE SAME ARE THEREFORE TREATED AS UNEXPLAINED CREDIT AND WILL BE ASSESSED TO TAX U/S 68 OF THE IT ACT, 1961. 4. SIMILARLY THE SUNDRY CREDITORS INCLUDED RS.24,54 ,300/- SHOWN IN THE NAME OF M/S YASH TRADERS, SHIVPURI. THE SAID CREDITOR HAS BEEN SHOWN AGAINST PURCHASE OF CHANA. THE A.O. MADE THE ADDITION AS UNDER :- RS.24,54,300/- HAS BEEN SHOWN IN THE NAME OF M/S YASH TRADERS SHIVPURI. THE SAID CREDITOR HAS BEEN SHOWN AGAINST PURCHASE OF CHANA MADE DURING 02/05/2006 TO 30/05/2006 FOR R S.24,54,300/-. NO CONFIRMATION FROM THIS CREDITOR IS FURNISHED NOR HAS HIS CERTIFIED COPY OF ACCOUNT BEEN FURNISHED. THE AMOUNT DUE FOR THE GOODS PURCHASED IS LYING PENDING FOR MORE THAN 10 MONTHS. AS PER THE TREND AND SYSTEM OF PAYMENT PREVAILING IN THE AREA THE PA YMENT OF GOODS ARE MADE FROM 30 TO 60 DAYS. IN THIS CASE THE PAYM ENT IS DUE FOR MORE THAN 10 MONTHS. IN THE MEAN WHILE THE INQUIRIES THROUGH THE INSPEC TOR OF THIS OFFICE WAS GOT CONDUCTED ABOUT THE GENUINENESS OF T HE CR4EDITOR SHOWN BY THE ASSESSEE IN THE NAME OF M/S YASH TRADE RS SHIVPURI FOR RS.24,54,300/-. THE INSPECTOR VIDE HIS REPORT DATE D 23/10/2009 HAS REPORTED THAT THE FIRM M/S. YASH TRADERS IS NOT IN EXISTENCE AT THE ADDRESS I.E. NEAR ANAJ MANDI NEW BLACK SHIVPURI (AS MENTIONED IN THE COPY OF ACCOUNT FURNISHED BY THE ASSESSEE). TH E INSPECTOR IN THIS REGARD ALSO MADE INQUIRIES FROM THE TRADERS OF THE SIMILAR NATURE OF TRADE WHO ARE DOING BUSINESS IN THE SAME LOCALITY, WHO HAVE ALSO INFORMED TO THE INSPECTOR THAT THE FIRM NAMED YASH TRADERS SHIVPAURI HAS NOT DONE ANY BUSINESS DURING THE LAST 4-5 YEARS . 4 ITA NO.167/AGRA/2012 A.Y. 2007-08 FURTHER, THE CREDITOR OF RS.24,54,300/- IN THE NAME OF YASH TRADERS SHIVPURI SHOWN BY THE ASSESSEE ALSO NOT SEE MS TO BE GENUINE AS THE SAID PARTY IS NOT ASSESSED TO TAX AS PER REC ORD OF THIS OFFICE. IT IS NOT OUT OF PLACE TO MENTION HERE THAT THE TERRIT ORIAL JURISDICTION OVER THE FIRM M/S. YASH TRADERS SHIVPURI LIES WITH THIS OFFICE. IN VIEW OF THE INSPECTOR REPORT AS PER SUPRA AND AL SO THE FACT THAT THE SAID CREDITOR IS NOT ASSESSED TO TAX, AND ALSO NOT FURNISHING OF CONFIRMATION & CERTIFIED COPY OF ACCOUNT OF THE CRE DITOR, BY THE ASSESSEE, THE SAID CREDITOR FOR RS.24,54,300/- IS N OT GENUINE AND THE SAME IS TREATED AS UNEXPLAINED CREDIT AND WILL BE A SSESSED TO TAX U/S.68 OF THE IT ACT, 1961. 5. THE CIT(A) CONFIRMED THE ORDER OF A.O. IN RESPEC T OF SUNDRY CREDITORS IN THE NAME OF GANESH RICE MILL OF RS.1,80,000/- AND IN TH E NAME OF M/S. YASH TRADERS R.24,54,300/- AS UNDER :- 3.3 IN RESPECT OF M/S. GANESH RICE MILL, THE APPEL LANT HAS FAILED TO GIVE ANY EVIDENCE IN RESPECT OF HIS SUBMISSIONS THA T HE HAS PURCHASED 200 QTLS. OF WHEAT ON 09.05.06 FOR RS.1,80,000/- AN D THAT THE PAYMENT HAS BEEN MADE IN SUBSEQUENT YEAR EVEN AT THE STAGE OF APPEAL PROCEEDINGS. VIDE ORDER SHEET ENTRY DTD. 09.02.201 2, THE APPELLANTS A.R. HAS BEEN SPECIFICALLY ASKED TO BRING COPY OF R ETURN, BANK STATEMENT, ASSESSMENT ORDER ETC. OF M/S. GANESH RIC E MILL ALONG WITH THAT OF ANOTHER CREDITOR VIZ. M/S. YASH TRADERS. I N RESPONSE, THE APPELLANT HAS STATED THAT THE SAME NOR ANY OTHER EV IDENCE IN SUPPORT OF HIS CONTENTIONS CANNOT BE SUBMITTED. IN FACT, T HE APPELLANT MERELY STATED THAT M/S. GANESH RICE MILL, A PROPRIETARY CO NCERN OF SHRI UMEH CHAND GOYAL MAY BE ASSESSED AT INCOME TAX OFFI CE, SHIVPURI. IT IS THE DUTY OF THE APPELLANT TO PROVE, WITH DOCU MENTARY EVIDENCE, ENTRIES MADE IN HIS BOOKS OF ACCOUNTS PERTAINING TO TRANSACTIONS MADE DURING THE YEAR. THE APPELLANT HAS BEEN GIVEN SUFF ICIENT OPPORTUNITY BOTH AT THE ASSESSMENT AND APPELLATE STAGE TO PROVE THE TRANSACTIONS MADE WITH M/S. GANESH RICE MILL WHICH HE HAS FAILED TO DO SO. ACCORDINGLY, ADDITION OF RS.1,80,000/- IS, HEREBY, CONFIRMED. 5 ITA NO.167/AGRA/2012 A.Y. 2007-08 3.4 SIMILARLY, IN RESPECT OF M/S. YASH TRADERS, THE APPELLANT HAS MERELY SUBMITTED COPY OF ACCOUNT APPERTAINING TO M/ S. YASH TRADERS IN HIS OWN BOOKS OF ACCOUNT WITHOUT ANY CONFIRMATIO N DESPITE BEING REPEATEDLY ASKED FOR. APPELLANTS CONTENTION THAT THE PAYMENTS TO THE SAID CONCERN HAVE BEEN MADE THROUGH CHEQUES FROM HI S BANK ACCOUNTS IN PUNJAB NATIONAL BANK, SHIVPURI AND SBI, KOLARAS ARE ALSO NOT FOUND TOTALLY CORRECT, AS THE TRANSACTIONS MADE THO ROUGH PNB TOTALING RS.7,95,000/- THROUGH CHEQUE NOS.888866 & 888862 TO TALING RS.7,95,000/- ARE NOT FOUND REFLECTED IN HIS BANK A CCOUNT STATEMENT SUBMITTED DURING THE COURSE OF APPEAL PROCEEDINGS. HIS SUBMISSIONS THAT COPY OF CONFIRMATION CERTIFICATE OF M/S. YASH TRADERS ON HIS LETTER-PAD HAVE BEEN FURNISHED AND REPRODUCED DURIN G THE COURSE OF APPEAL PROCEEDINGS ARE ALSO FOUND UNACCEPTABLE, AS THE APPELLANT HAS SIMPLY SUBMITTED COPY OF ACCOUNT OF M/S. YASH TRADE RS IN HIS OWN BOOKS OF ACCOUNTS. THE FACT THAT THE APPELLANT HAS FAILED TO PRODUCE COPY OF BANK ACCOUNT, INCOME TAX RETURN ALONG WITH ENCLOSURES AND CONFIRMATION CERTIFICATE OF M/S. YASH TRADERS DESP ITE BEING ASKED FOR AND IN FACT HIS OWN SUBMISSIONS HAS NO FURTHER EVID ENCE CAN BE GIVEN SHOWS THAT ALLEGED TRANSACTIONS CARRIED OUT WITH M/ S. YASH TRADERS ARE NOT GENUINE. M/S. YSH TRADERS IS ALSO NOT FOUN D TO BE ASSESSED TO TAX AS PER RECORDS OF THE SAME A.O. WHO AND HAS TER RITORIAL JURISDICTION OVER THE SAID FIRM M/S. YASH TRADERS, SHIVPURI. LOCAL ENQUIRIES MADE BY THE A.O. CONFIRMED THE SAID FACT AND THE FACT THAT ITIS REPORT HAS NOT BEEN CONFRONTED TO THE APPELLA NT DOES NOT NEGATE THE FINDINGS OF THE A.O., AS THE ADDITION HAS NOT B EEN MADE SOLELY ON THE BASIS OF THE SAID REPORT OF ITI. IT IS CLEAR F ROM THE LANGUAGE OF SEC.68 THAT IT IS THE APPELLANT AND THE APPELLANT A LONE ON WHOM THE ONUS IS LAID TO FURNISH ALL RELEVANT INFORMATION. IF HE IS UNABLE TO SUPPORT THE INFORMATION GIVEN, IT IS REASONABLE TO INFER THAT HE HAS GIVEN FALSE EXPLANATION IN ORDER TO HIDE THE REAL C HARACTER OF THE SUM IN QUESTION. IT HAS BEEN HELD BY HONBLE MADRAS HI GH COURT IN CASER OF CIT VS. KRISHNAVENI AMMAL (1986) 158 ITR 826 (MA D) THAT THE NON-PRODUCTION OF COMPLETE DOCUMENTARY EVIDENCE IN SUPPORT OF HIS EXPLANATION ESPECIALLY WHEN ASKED FOR BY THE A.O. W OULD ENTITLE THE A.O. TO REACH THE CONCLUSION ADVERSE TO THE APPELLA NT. ON THE BASIS OF FACTS OF THE CASE AND FAILURE OF THE APPELLANT TO S UBMIT COMPLETE SATISFACTORY DOCUMENTARY EVIDENCES IN SUPPORT OF TR ANSACTION MADE WITH M/S YASH TRADERS, A.O. IS FOUND JUSTIFIED IN A SSESSING THE SAME U/S 68 OF THE I.T. ACT. ACCORDINGLY, ADDITION OF R S.24,54,300/- ON 6 ITA NO.167/AGRA/2012 A.Y. 2007-08 ACCOUNT OF M/S. YASH TRADERS, IS, THEREFORE, CONFIR MED. TOTAL ADDITION OF RS.26,34,300/- OUT OF RS.30,41,802/- MADE BY THE A.O. U/S. 68 IS, HEREBY, CONFIRMED. 6. THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS FURNISHED ALL THE REQUIRED DETAILS INCLUDING CONFIRMATION AND PURCHASE BILLS. IN THIS REGARD, THE LD. AUTHORISED REPRESENTATIVE DREW OUR ATTENTIO N TO PAGE NOS.13 & 14 OF THE PAPER BOOK WHERE COPIES OF PURCHASER BILLS HAVE BEE N PLACED. THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS FURN ISHED FULL ACCOUNT OF PURCHASE AND SALE WHICH HAVE BEEN ACCEPTED BY THE A.O. THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE A.O. DID NOT DISPUTE ABOUT THE P URCHASES OF THE GOODS FROM THESE PARTIES. IT IS ALSO SUBMISSION OF THE LD. AUTHORIS ED REPRESENTATIVE THAT THE PAYMENT WAS MADE TO THIS PARTY IN SUBSEQUENT YEAR OF WHICH COPY HAS ALSO BEEN FURNISHED TO THE A.O. AND COPIES OF BANK ACCOUNT AND COPY OF ACC OUNT HAVE BEEN PLACED IN THE PAPER BOOK. THE LD. AUTHORISED REPRESENTATIVE SUBM ITTED THAT THE A.O. AND CIT(A) WHILE CONFIRMING THE ADDITION IN THE CASE OF M/S YASH TRADERS RELIED UPON THE ENQUIRY MADE BY THE INSPECTOR. LD AUTHORISED R EPRESENTATIVE SUBMITTED THAT THE A.O. DID NOT PROVIDE OPPORTUNITY TO CONFRONT TH E INSPECTORS REPORT AS A COPY OF INSPECTORS REPORT WAS ALSO NOT GIVEN TO THE ASSESS EE. THE LD. AUTHORISED REPRESENTATIVE RELIED UPON THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF KISHIN CHAND CHELLARAM VS. CIT, 125 ITR 713 (SC) AN D JUDGMENT HONBLE M.P. 7 ITA NO.167/AGRA/2012 A.Y. 2007-08 HIGH COURT IN THE CASE OF PRAKASH CHAND NAHTA VS. C IT, 301 ITR 134 (M.P.) AND SUBMITTED THAT WHEN THE ASSESSEE WAS NOT PROVIDED O PPORTUNITY FOR CONFRONTATION, THE MATERIAL COLLECTED CANNOT BE USED AGAINST THE A SSESSEE. IT IS ALSO SUBMISSION OF THE LD. AUTHORISED REPRESENTATIVE THAT WHEN THE PUR CHASES ARE ACCEPTED AS GENUINE, ADDITION CANNOT BE MADE UNDER SECTION 68 OF THE ACT . LD. AUTHORISED REPRESENTATIVE IN SUPPORT OF HIS CONTENTION RELIED UPON THE JUDGEMENT OF HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. PANCHAM DASS JAIN, 205 CTR 444 (ALL.). LD. AUTHORISED REPRESENTATIVE ALSO RELIED UPON VARIOUS JUDGMENTS, OF WHICH, COPIES HAVE BEEN PLACED IN PAPER BOOK. HE A LSO RELIED UPON THE FOLLOWING DECISIONS:- 1) J.H. METALS VS. ITO (2001) 77 ITD 71 (ASR.)(TM) 2) RAJESH P. SONI VS. ACIT (2006) 100 TTJ 892 (AHD ) 3) CIT VS. KASHIRAM TEXTILE MILLS (P) LTD.(2006) 20 2 CTR 293 (GUJ.) 4) KISHIN CHAND CHELLARAM VS. CIT, 125 ITR 713 (SC) 5) PRAKASH CHAND NAHTA VS. CIT, 301 ITR 134 (M.P.) 7. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDER OF CIT(A). 8. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND RECORDS PERUSED. THE CASE OF THE REVENUE AS FACTS NOTED BY THE A.O. IS THAT THE ASSESSEE HAS FAILED TO FURNISH CONFIRMATION OF THE CREDITORS. THE ASSESSE E HAS ALSO FAILED TO FURNISH 8 ITA NO.167/AGRA/2012 A.Y. 2007-08 NECESSARY EXPLANATION WHY THE AMOUNT WAS OUTSTANDIN G MORE THAN THE PERIOD AND ABOUT THE PRACTICE PREVAILING IN THE MARKET. ON EN QUIRY, THE INSPECTOR DID NOT FIND EXISTENCE OF M/S. YASH TRADERS. SIMILAR FINDING HA S BEEN GIVEN BY THE CIT(A) WHEREAS THE SUBMISSION OF THE ASSESSEE IS THAT THE ASSESSEE HAS FURNISHED COMPLETE DERAILS, CONFIRMATION, COPY OF ACCOUNTS, DETAILS OF PAYMENTS, COPY OF BANK ACCOUNT ETC. THIS FACT IS EVIDENT FROM ORDER OF CIT(A) WHE REIN THE CIT(A) HAS REPRODUCED THE ASSESSEES SUBMISSION AT PAGE NOS.4 TO 7 OF HIS ORDER. AFTER CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE, WE NOTICE THAT C ONTRARY FACTS ARE AVAILABLE ON RECORDS AS RECORDED BY THE REVENUE AUTHORITIES AND AS POINTED OUT BY THE LD. AUTHORISED REPRESENTATIVE FROM THE PAPER BOOK. THE REVENUE HAS RECORDED THE FACT THAT THE ASSESSEE DID NOT FURNISH THE CONFIRMA TION AND EXPLANATION WHEREAS THE ASSESSEE MADE THE SUBMISSION THAT ALL RELEVANT DETA ILS WERE FURNISHED BY THE ASSESSEE. THE DETAILS AND EXPLANATION FURNISHED BY THE ASSESSEE HAS NOT BEEN EXAMINED EITHER BY THE A.O. OR BY THE CIT(A). THE COMPLETE FACTS OF THE CASE ARE REQUIRED TO BE PUT ON RECORD, AFTER EXAMINING THE R ELEVANT DETAILS FILED BY THE ASSESSEE. IN THE ABSENCE OF COMPLETE FACTS OF THE CASE, THE MATTER CANNOT BE DECIDED AT THIS STAGE. 9. AS REGARDS GROUND NO.2 AND JUDGMENT OF HONBLE A LLAHABAD HIGH COURT IN THE CASE OF CIT VS. PANCHAM DASS JAIN (SUPRA) WHERE IN THE HONBLE HIGH COURT HAS HELD AS UNDER :- 9 ITA NO.167/AGRA/2012 A.Y. 2007-08 THE SUBMISSION IS MISCONCEIVED. THE TRIBUNAL HAS RECORDED A CATEGORICAL FINDING OF FACT BASED ON APPRECIATION O F MATERIALS AND EVIDENCE ON RECORD THAT THE AO HAD ACCEPTED THE PUR CHASES, SALES AS ALSO THE TRADING RESULT DISCLOSED BY THE RESPONDENT -ASSESSEE. IT HAD RECORDED A FINDING THAT THE AFORESAID TWO AMOUNTS R EPRESENTED THE PURCHASES MADE BY THE ASSESSEE ON CREDIT AND, THERE FORE, THE PROVISIONS OF SECTION 68 OF THE ACT COULD NOT BE AT TRACTED IN THE PRESENT CASE. WE FULLY AGREE WITH THE VIEW TAKEN B Y THE TRIBUNAL ON THIS ISSUE, INASMUCH AS, ON THE BASIS OF THE FINDIN GS RECORDED BY IT THAT THESE TWO AMOUNTS REPRESENTED PURCHASES MADE BY THE RESPONDENT- ASSESSEE ON CREDIT AND THE PURCHASES AND SALES HAVI NG BEEN ACCEPTED BY THE DEPARTMENT, THE QUESTION OF ADDITION OF THE AFORESAID TWO AMOUNTS UNDER SECTION 68 OF THE ACT DID NOT ARISE I NASMUCH AS THE PROVISIONS OF SECTION 68 OF THE ACT WOULD NOT BE AT TRACTED ON THE PURCHASES MADE ON CREDIT. 10. FOR APPLICATION OF THE ABOVE JUDGMENT OF HONBL E ALLAHABAD HIGH COURT, THE NECESSARY FACTS ARE REQUIRED TO BE PUT ON RECORD AF TER APPRECIATION OF MATERIAL EVIDENCE FILED BY THE ASSESSEE. IN THAT CASE THE C OURT HAS DECIDED THE ISSUE ON THE BASIS OF FACTS RECORDED THAT THE AMOUNT ADDED WAS I N FACT REPRESENTED PURCHASE MADE BY THE ASSESSEE ON CREDIT BUT IN THE CASE UNDE R CONSIDERATION THIS FACT IS SUBJECT TO VERIFICATION AS THE INSPECTOR HAS REPORT ED THAT ONE OF THE PARTY M/S. YASH TRADERS IS NOT IN EXISTENCE. THEREFORE, FACTS OF T HE CASE ARE ALSO REQUIRED TO BE VERIFIED/EXAMINED, IN THE LIGHT OF THE SAID JUDGEME NT OF JURISDICTIONAL HIGH COURT OF ALLAHABAD IN THE CASE OF CIT VS. PANCHAM DAS JAI N (SUPRA). AS STATED ABOVE THAT COMPLETE FACTS OF THE CASE AFTER EXAMINATION A RE NOT IN RECORD. WE, THEREFORE, KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE, T HINK IT PROPER TO SEND BACK THIS 10 ITA NO.167/AGRA/2012 A.Y. 2007-08 MATTER TO THE FILE OF A.O. WITH THE DIRECTION TO DE CIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE AND PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW, AFTER PROVID ING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY