ACIT, Madurai V. M/s. Nikkie Distributors, Madurai

ITA 187/CHNY/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 7879 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 23-11-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 18-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M BALASUBRAMANIYAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH D CHENNAI BEFORE DR.O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA JUDICIAL MEMBER .. ITA NO.184/MDS./10 A.Y : 2001-02 ITA NO.185/MDS./10 A.Y : 2002-03 ITA NO.186/MDS./10 A.Y : 2003-04 ITA NO.187/MDS./10 A.Y : 2004-05 ITA NO.188/MDS./10 A.Y : 2005-06 ITA NO.189/MDS./10 A.Y : 2006-07 ITA NO.190/MDS./10 A.Y : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II, MADURAI. ( PAN NO.AABFN 4160 D) VS. M/S.NIKKIE DISTRIBUTORS, NO.39,MADURAI MAIN ROAD, THIRUMANGALAM, MADURAI 625 706. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI M.BALASUBRAMANIYAN DEPARTMENT BY : DR.ANIRUDH RAI CIT DR PAGE 2 OF 4 ITA.NOS.184 TO 190 /MDS/10 O R D E R PER DR.O.K.NARAYANAN, V.P. : THIS IS A BUNCH OF SEVEN APPEALS. ALL THE APPEAL S ARE FILED BY THE REVENUE. THE APPEALS RELATE TO ASSESSMENT YEAR S 2001-02, 2002-03,2003-04, 2004-05, 2005-06, 2006-07 & 2007-0 8. 2. THESE APPEALS ARE DIRECTED AGAINST THE COMMON O RDER PASSED BY THE CIT(A)-II AT MADURAI DATED 30.11.09. THE APPEALS ARISE OUT OF RESPECTIVE ASSESSMENT COMPLETED U/S. 143(3) READ WITH SECTION 153C OF THE INCOME TAX ACT, 1961. 3. THE COMMON GROUND RAISED BY THE REVENUE IN ALL THESE APPEALS IS THAT THE CIT(A) HAS ERRED IN HOLDING THA T THE ADDITIONS MADE BY THE ASSESSING AUTHORITY WERE ON CONJUNCTURE , SUSPICION AND SURMISES, WHEN THE FACT OF UNACCOUNTED SALES TO RET AIL CUSTOMERS AS ADMITTED BY THE ASSESSEES MANAGER WAS PROVED BY TH E DEPARTMENT. IT IS THE CASE OF THE REVENUE THAT THE CIT(A) HAS ERRED IN OVER- LOOKING THE PROBATIVE VALUE OF THE ADMISSION MADE B Y THE ASSESSEES MANAGER, IN THE LIGHT OF HONBLE MADRAS HIGH COURT IN THE CASE OF P.GOVINDASAMY VS. CIT 244 ITR 510 AND THAT OF HONB LE GUJARAT HIGH COURT IN THE CASE OF RAMILABEN RATILAL SHAH VS . CIT 282 ITR 178 WHEREIN THE COURTS HAVE HELD THAT ADMISSIONS MA DE IN THE PAGE 3 OF 4 ITA.NOS.184 TO 190 /MDS/10 COURSE OF SURVEY BY WAY OF SWORN STATEMENTS ARE AD MITTED FACTS AND NOT TO BE FURTHER PROVED. 4. WE HEARD DR. ANIRUDH RAI, LEARNED COMMISSIONER OF INCOME TAX APPEARING FOR THE REVENUE AND SHRI M. BALASUB RAMANIYAM, LEARNED COUNSEL APPEARING FOR THE RESPONDENT ASSESS EE. 5. IN FACT, THE VERY SIMILAR ISSUE WAS CONSIDERED BY ITAT, CHENNAI A BENCH IN THE CASE OF ONE OF THE ASSOCIATES OF T HE ASSESSEE, NAMELY M/S.SUSEE AGENCIES. IN THE CASE OF M/S.SUSE E AGENCIES ALSO SEVEN APPEALS WERE FILED BY THE REVENUE FOR TH E VERY SAME SET OF ASSESSMENT YEARS ON EXACTLY SIMILAR GROUNDS ARIS ING OUT OF ANALOGOUS FACTUAL MATRIX. THE TRIBUNAL CONSIDERED THOSE APPEALS FILED BY THE REVENUE IN THE CASE OF M/S.SUSEE AGENC IES IN THEIR ORDER DATED 29.01.10 IN ITA NOS.1301 TO 1307/MDS./09 AND FINALLY HELD THAT THERE WAS NO JUSTIFICATION FOR MAKING ADDITIONS AS CANVASSED BY THE REVENUE AND THE ORDERS OF THE CIT(A) ARE JUST AND PROPER IN LAW. ON THE BASIS OF THE ABOVE FINDINGS, THE TRIBUNAL DISMI SSED THE APPEALS FILED BY THE REVENUE. 6. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CAS E, WE FIND THAT THE SAID COMMON ORDER PASSED BY THE TRIBUNAL IN ITA NOS.1303 TO 1307/MDS/09 IS EQUALLY APPLICABLE TO THE PRESENT AP PEALS AS WELL. ACCORDINGLY, BY FOLLOWING THE ABOVE MENTIONED COMMO N ORDER OF THE PAGE 4 OF 4 ITA.NOS.184 TO 190 /MDS/10 TRIBUNAL WE HOLD THAT THESE APPEALS FILED BY THE RE VENUE ARE LIABLE TO BE DISMISSED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY O F 23 RD NOVEMBER, 2010 AT CHENNAI. SD/- SD/- ( HARI OM MARATHA ) ( DR.O.K.NARAYANAN ) JUDICIAL MEMBER VICE PRESIDENT CHENNAI, DATED THE 23 RD NOVEMBER, 2010. KSS COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE