ACIT, Faridabad V. M/s Ardent Buildwell India Pvt. Ltd., New Delhi

ITA 168/DEL/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97508 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 01-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 12-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NANDITA KANCHAN
• Assessee Lawyers: SUNIL MATHUR ITP
• Keywords: Bogus purchase; Search and seizure
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI R. S. SYAL, ACCOUNTANT MEMBER AND SMT SUCHITRA KAMBLE , JUDICIAL MEMBER I.T.A .NO.- 168/DEL/2011 (ASSESSMENT YEA R-2008-09) ACIT CENTRAL CIRCLE-1 FARIDABAD (APPELLANT) VS ARDENT BUILD WELL INDIA PVT. LTD. A-16/B-1. MOHAN CO-OP, INDL. ESTATE NEW DELHI AAFCA7783C (RESPONDENT) APPELLANT BY SMT. NANDITA KANCHAN CIT (DR) RESPONDENT BY SH. SUNIL MATHUR, ITP ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST ORDER D ATED 25/10/2010 PASSED BY LD. CIT(A) 1, LUDHIANA. THE GROUNDS OF A PPEAL ARE AS FOLLOWS:- 1. THE LD. CIT(A) HAS ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN DELETING AN ADDITION OF RS.4,17,06,708/- MADE ON AC COUNT OF BOGUS PURCHASES [RELYING ON THE RATIO OF HIS OWN DECISION S IN THE CASE OF PIYUSH DEVELOPERS (P) LTD IN ITA NO. 39-IT/CIT(A)-1 /LDH/09-10, DATED 29/09/2010], WITHOUT APPRECIATING THAT DESPIT E ABUNDANT OPPORTUNITIES GIVEN BY THE ASSESSING OFFICER, AND B EING CONFRONTED DATE OF HEARING 01.10.2015 DATE OF PRONOUNCEMENT 07 .10.2015 ON RECORD, THE ASSESSEE FAILED TO PRODUCE THE PARTI ES AND TO PROVE THE GENUINENESS, IDENTITY AND CREDITWORTHINESS OF T HE PARTIES FROM WHOM THE ALLEGED PURCHASES WERE MADE, THE ONUS FOR WHICH HAD SQUARELY SHIFTED ON THE ASSESSEE AFTER THE RELEVANT PARTIES WERE NOT FOUND TO EXIST AT THE ADDRESSES FURNISHED BY TH E ASSESSEE TO THE ASSESSING OFFICER. 2. BRIEF FACTS OF THE CASE ARE THERE WAS SEARCH AND SEIZURE OPERATION OF PIYUSH GROUP OF COMPANIES ON 16/1/2008. DURING THE COURSE OF SEARCH AT THE CORPORATE OFFICE OF PIYUSH GROUP, BOOKS OF ACCOUNTS WERE FOUND AND SEIZED AS PER ANNEXURE A-1 TO A-79 OF THE INVENTORY OF SEIZED DOCUMENT. NOTICE UNDER SECTION 142(1) OF THE INCOME TAX ACT, 1961 DATED 24 .11.2009 WAS ISSUED AND DULY SERVED UPON THE ASSESSEE. THE ASSESSEE COMPANY FILED RETURN DECLARING AN INCOME OF RS. 14,87,530/- DATED 01.12.2009. IN RESP ONSE TO NOTICE U/S. 142(1) THE ASSESSEE COMPANY HAS FILED COPY OF ORIGINAL RET URN DECLARING INCOME OF RS. 1,87,534/- ON 29.09.2008. THE ASSESSING OFFICER MA DE ADDITION OF RS. 4,17,06,708/- IN RESPECT OF BOGUS PURCHASE MADE DUR ING THE YEAR. THE ASSESSEE WENT IN APPEAL AGAINST THE ASSESSMENT ORDE R DATED 29/2/2009 BY TAKING GROUND THAT THE APPELLANT DENIES ITS LIABILI TY TO BE ASSESSED U/S. 153C AT TOTAL INCOME OF RS.4,34,240/- AGAINST RETURNED INCO ME OF RS. 14,87,530/-. THE SAID GROUND WAS DISMISSED BY THE LD. CIT(A) . 3. THE AR SUBMITTED AN ORDER DATED 8 TH JULY 2015 PASSED BY THE ITAT DELHI BENCH IN ITA NO. 5599/DEL/2010 IN CASE OF SEARCHED PARTY I.E. PIYUSH DEVELOPERS PVT. LTD., WHEREIN THE APPEAL OF PIYUSH DEVELOPERS HAS BEEN ALLOWED AND POINTED OUT THAT IN FACT THE GROUNDS CONTESTED BY THE REVENUE IN THE PRESENT CASE ARE SIMILAR. 4. THE DR TOTALLY RELIED ON ASSESSING OFFICERS ORD ER BUT COULD NOT DISTINGUISH THE ORDER PASSED BY THIS TRIBUNAL IN PI YUSH DEVELOPERS CASE. [PIYUSH DEVELOPERS PVT. LTD. VS. ACIT (ITA NO. 5599 /DEL/2010) AND ACIT VS. PIYUSH DEVELOPERS PVT. LTD. (ITA NO. 5706/DEL/2010) DATED 08.07.2015] 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RECORDS AND FOUND THAT THE ISSUE CONTESTED BEFORE THE ITAT IN THE PRE SENT CASE ARE COVERED BY PIYUSH DEVELOPERS PVT. LTD. 6. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 7 TH OF OCTOBER, 2015. SD/- SD/- (R.S. SYAL) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 07 /10/2015 R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT R EGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 05.10.2015 PS 2. DRAFT PLACED BEFORE AUTHOR 05.10.2015 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 06.10..2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 06.10.2015 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 07.10.2015 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.