M/s. Om Bulk Carriers, SILVASSA V. The Income tax Officer,Vapi Ward-4, Daman

ITA 1706/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76732 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 21-05-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 27-06-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL

Judgement Text

, , , , B, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, B BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .# ## #. . . . % % % %, , , , &' ( & ' &' ( & ' &' ( & ' &' ( & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND N.S. SAINI, ACCOUNTANT MEMBER) ITA NO.1706/AHD/2011 [ASSTT.YEAR : 2006-2007] M/S.OM BULK CARRIERS SHOP NO.23, BLDG.A/3, ANANDNAGAR OPP: CIVIL COURT, SAMARVANI SILVASSA 396 230. /VS. ITO, VAPI, WARD-4 DAMAN. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ./ 0 1 &/ ASSESSEE BY : NONE ( 0 1 &/ REVENUE BY : SHRI P.L. KUREEL, SR.DR 3 0 /4'/ DATE OF HEARING : 21 ST MAY, 2014 567 0 /4'/ DATE OF PRONOUNCEMENT : 06-06-2014 &8 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2006-2007 IS DIRECTED AGAINST T HE ORDER OF THE CIT(A). 2. AT THE TIME OF HEARING, NONE APPEARING ON BEHALF OF THE ASSESSEE- APPELLANT, AND ACCORDINGLY, THE APPEAL OF THE ASSES SEE IS BEING DECIDED EX PARTE QUA THE ASSESSEE-APPELLANT, ON MERITS AFTER HEARING LE ARNED DR. 3. THE GROUND NO.1 OF THE APPEAL OF THE ASSESSEE IS AS UNDER: ITA NO.1706/AHD/2011 -2- 1. THE LD.ITO HAS ERRED IN LAW AND ON FACTS TO ADD AN AMOUNT OF RS.2,65,530/- OUT OF A ADDITION OF RS.4,45,530/- CA PITAL INTRODUCED BY PARTNER MANISH PRADHAN AND RS.1,90,000/- FURTHER CAPITAL CONTRIBUTED BY ANOTHER PARTNER AJIT PATEL, LR. CI T(A) HA ALSO ERRED IN SUSTAINING ADDITION. 4. THE LEARNED DR SUBMITTED THAT THE ADDITION WAS R IGHTLY MADE ON ACCOUNT OF CAPITAL INTRODUCED BY THE PARTNERS OF TH E ASSESSEE-FIRM IN THE HANDS OF THE ASSESSEE-FIRM AND THE ISSUE IS COVERED WITH THE DECISION OF ITAT, HYDERABAD BENCH IN THE CASE OF PARAS COLLINS DISTILLERIES VS. ITO, 130 ITD 144 (HYD). 5. WE HAVE CONSIDERED SUBMISSIONS OF THE LEARNED DR AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ISSUE OF ADDITION MADE ON ACCOUNT OF PARTNERS CAPITAL CONTRIBUTION TO THE ASSESSEE-FIRM IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN PANKAJ DYESTUFF INDUSTRIES, IT REFERE NCE NO.241 OF 1993, WHEREIN HELD THAT THE ISSUE OF PARTNERS CREDIT CAN BE CONSIDERED IN THE CASE OF THE PARTNER AND NO ADDITION COULD BE MADE IN THE HANDS OF THE FIRM. RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE GUJARAT HIGH COURT ON THIS ISSUE, WE HOLD THAT THE SOURCE OF CREDIT IN TH E PARTNERS ACCOUNT IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE-FIRM COULD BE CON SIDERED ONLY IN THE INDIVIDUAL ASSESSMENT OF THE PARTNER, AND ACCORDING LY, THE ADDITION MADE IS DELETED AND THE GROUND NO.1 OF THE ASSESSEE IS ALLO WED. 6. THE GROUND NO.2 OF THE ASSESSEES APPEAL IS AS U NDER: 2. LD.ITO HAS ERRED IN LAW AND ON FACTS TO CHARGE INTEREST U/S.234B, WHEN TOTAL INCOME OF THE FIRM WAS EXIGIBL E TO TDS WHICH WAS DEDUCTED OF RS.1,67,590/- FOR A.Y.2006-07 AND A LSO INTEREST U/S.234D OF THE IT ACT. ITA NO.1706/AHD/2011 -3- 7. WE HAVE HEARD LEARNED DR. THE ISSUE OF CHARGING OF INTEREST DOES NOT ARISE OUT OF THE ORDER OF THE CIT(A), AND IS AC CORDINGLY DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( # ## #. .. .# ## #. . . . % % % % /N.S.SAINI) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD