M/s. Newera Sanitary Wares Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 1870/DEL/2014

• Counselvise Citation: 187020114 RSA 2014
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 13-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 31-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVI SHARAN SINGH
• Assessee Lawyers: B K DHINGRA
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH SMC SMC SMC SMC : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT PRESIDENT PRESIDENT PRESIDENT ITA NO ITA NO ITA NO ITA NO . .. . 1870/DEL/2014 1870/DEL/2014 1870/DEL/2014 1870/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2006 2006 2006 2006 - -- - 07 0707 07 M/S NEWERA SANITARYWARE M/S NEWERA SANITARYWARE M/S NEWERA SANITARYWARE M/S NEWERA SANITARYWARE PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., M MM M- -- -78A, BASEMENT, 78A, BASEMENT, 78A, BASEMENT, 78A, BASEMENT, MALVIYA NAGAR, MALVIYA NAGAR, MALVIYA NAGAR, MALVIYA NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 017. 110 017. 110 017. 110 017. PAN : AA PAN : AA PAN : AA PAN : AACCN0101E. CCN0101E. CCN0101E. CCN0101E. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, 17, 17, 17, JHANDEWALAN, JHANDEWALAN, JHANDEWALAN, JHANDEWALAN, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.K. DHINGRA, CA. RESPONDENT BY : SHRI DEVI SHARAN SINGH, SR.DR. DATE OF HEARING : 13.07.2015 13.07.2015 13.07.2015 13.07.2015 DATE OF PRONOUNCEMENT : 03.08.2015 03.08.2015 03.08.2015 03.08.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2006-0 7 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-II, NEW DELHI DATED 29 TH JANUARY, 2014. 2. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE EF FECTIVE GROUND OF APPEAL OF THE ASSESSEE IS GROUND NO.7, WHICH I S REPRODUCED HEREUNDER:- 7. A) THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND THE PROVISIONS OF LAW, THE LD.CIT(APPEALS) HAS ERRED IN SUSTAINING AN ADDITION OF RS.1,50,000/- AS ALL EGED CASH PAYMENT TOWARDS ADVANCE IN THE JOINT VENTURES PROJECT AS UNEXPLAINED INVESTMENT IGNORING THE FACTUA L POSITION THAT THE APPELLANT COMPANY HAD NEVER MADE T HE ALLEGED CASH PAYMENT FOR THE SAID JOINT VENTURE PROJE CT AS REFERRED IN THE ASSESSMENT AND APPELLATE ORDER AND THUS, ITA-1870/DEL/2014 2 BASING THE SAID ADDITION ON SURMISES AND CONJECTURES AN D WITHOUT ANY EVIDENCE IN POSSESSION OF THE LD.AO. B) THAT THE LD.CIT(APPEALS) HAS ERRED IN IGNORING THE FACT THAT THE LD.AO WAS NOT JUSTIFIED TO MAKE AN ADD ITION OF RS.1,50,000/- BASED ON MISINTERPRETING THE ALLEGED STATEMENT OF SH. SURESH KUMAR CHAUDHARY; WITHOUT CONFRONTING THE SAME TO THE APPELLANT FOR ITS REBUTTA L AND ALSO WITHOUT AFFORDING ANY OPPORTUNITY FOR CROSS EXAMINATION OF SH. SURESH KUMAR CHAUDHARY BY THE APPELLANT. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASS ESSEE HAS ENTERED INTO A DEAL FOR PROPERTY AT `16.19 CRORE S, WHICH WAS A JOINT VENTURE ALONG WITH OTHER COMPANIES AND THE ASSESSEES SHAR E WAS 37.5%. HE SUBMITTED THAT THE ASSESSEE HAS NEVER MADE TH E CASH PAYMENT OF `4,00,000/- AND, IN FACT, THE CASH COMPON ENT OF `4,00,000/- WAS PAID BY OTHER PARTNERS IN THE JOINT VENTURE DULY CONFIRMED BY THEM AS PER THEIR CONFIRMATION LETTER TO M/S YASH SOFTECH P RIVATE LIMITED AND M/S MADHUSUDAN BUILDCON PVT.LTD., COPY FILED IN THE COMPILATION AT PAGE 56 & 60 BEFORE THE TRIBUNAL. 4. LEARNED DR SUBMITTED THAT THERE IS NO RECORD OR E VIDENCE PRODUCED BY THE ASSESSEE THAT THE SAID AMOUNT OF `4,00, 000/- WAS PAID BY THESE COMPANIES ON BEHALF OF THE JOINT VENTURE PRO JECT AND, THEREFORE, THE ADDITION OF `1,50,000/- MADE REPRESEN TING 37.5% SHARE OF THE ASSESSEE IN THE SAID AMOUNT OF `4,00,000/- WAS JUST IFIED. HE RELIED ON THE ORDER OF THE ASSESSING OFFICER AND THE LE ARNED CIT(A). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERU SED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A) A ND ALSO THE COPIES OF CERTIFICATES ISSUED BY M/S YASH SOFTECH PRIVATE LIMITED AND M/S MADHUSUDAN BUILDCON PVT.LTD. PLACED IN THE COMPI LATION BEFORE THE TRIBUNAL. I FIND THAT THE ASSESSEE HAS PROVED BEYOND DO UBT THE SOURCE OF CASH COMPONENT OF `4,00,000/- TOWARDS THE JOINT VE NTURE PROJECT. ITA-1870/DEL/2014 3 BOTH THE PARTIES, WHO WERE PARTNERS IN THE JOINT VENT URE PROJECT, VIZ., M/S YASH SOFTECH PRIVATE LIMITED AND M/S MADHUSUDAN BU ILDCON PVT.LTD. HAVE CONFIRMED THE CASH PAYMENT MADE. IN T HESE FACTS OF THE CASE, I AM OF THE CONSIDERED VIEW THAT THE ADDITION O F `1,50,000/- MADE WAS WITHOUT ANY BASIS OR EVIDENCE BROUGHT ON RECORD, W HICH IS ACCORDINGLY DELETED AND GROUND NO.7 OF THE ASSESSEES AP PEAL IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 3 RD AUGUST, 2015. SD/- (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S NEWERA SANITARYWARE PVT.LTD., M/S NEWERA SANITARYWARE PVT.LTD., M/S NEWERA SANITARYWARE PVT.LTD., M/S NEWERA SANITARYWARE PVT.LTD., M MM M- -- -78A, BASEMENT, MALVIYA NAGAR, 78A, BASEMENT, MALVIYA NAGAR, 78A, BASEMENT, MALVIYA NAGAR, 78A, BASEMENT, MALVIYA NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 017. 110 017. 110 017. 110 017. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -17, JHANDEWALAN, NEW DELHI. 17, JHANDEWALAN, NEW DELHI. 17, JHANDEWALAN, NEW DELHI. 17, JHANDEWALAN, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR