Golden Steel Corporation, Pune V. Deputy Commissioner of Income-tax, Circle - 8, Pune

ITA 1979/PUN/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8575 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 21-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY DHOKE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1 979 /PUN/201 7 / ASSESSMENT YEAR : 20 11 - 12 GOLDEN STEEL CORPORATION S.NO.99, PLOT NO.7A, YASHWANT NAGAR, PIMPRI, PUNE 411018 PAN : A AIFG4446J ....... / APPELLANT / V/S. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 8, PUNE / RESPONDENT ASSESSEE BY : SHRI SARVESH KHANDELWAL REVENUE BY : SHRI AJAY DHOKE, ADDL.CIT / DATE OF HEARING : 1 5 - 0 7 - 20 20 / DATE OF PRONOUNCEMENT : 15 - 0 7 - 2020 / ORDER PER S.S. VISWANETHRA RAVI , JM : THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 02.05.2017 PASSED BY THE COMMISSIONER OF INCOME - TAX ( APPEALS ) - 6 , PUNE FOR ASSESSMENT YEAR 2011 - 12 . 2. THE ONLY ISSUE RAISED BY THE ASSESSEE QUESTIONING THE ACTION OF CIT(A) IN CONFIRMING THE ADDITION OF RS.21,58,231/ - , THE DIFFERENCE OF PURCHASES FOUND BY THE ASSESSING OFFICER BETWEEN ITS AND BOOKS OF ACCOUNTS OF THE ASSESSEE AND FROM SIX DIFFERENT PRIVATE LIMITED COMPANIES. 2 ITA NO. 1979 /PUN/201 7 GOLDEN STEEL CORPORATION 3. THE BRIEF FACTS RELATING TO THE ISSUE ON HAND ARE THE ASSESSEE IS A FIRM DEALING IN THE BUSINESS OF SCRAP TRADER. THE ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS.54,32,362/ - A ND UNDER THE SCRUTINY, THE ASSESSING OFFICER DETERMINED THE SAME AT RS.85,90,593/ - INTER - ALIA , MAKING TWO ADDITIONS ON ACCOUNT OF DIFFERENCE IN PURCHASES AND ADHOC DISALLOWANCES VIDE HIS ORDER DATED 11.03.2014. AS AGGRIEVED BY THE ORDER OF ASSESSING OFFIC ER, THE ASSESSEE CHALLENGED THE SAME BEFORE CIT(A). THE CIT(A) CONSIDERING THE SUBMISSIONS MADE BY ASSESSEE CONFIRMED THE ADDITION MADE ON ACCOUNT OF DIFFERENCE IN PURCHASES FROM SIX DIFFERENT COMPANIES. 4. HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER FOUND DIFFERENCE IN PURCHASES FROM ITS DATA AND OF THE LEDGER ACCOUNT OF ASSESSEE IN THE BOOKS OF SIX PRIVATE LIMITED COMPANIES. THE ASSESSING OFFICER ASKED THE ASSE SSEE TO EXPLAIN EXCESS CLAIM OF PURCHASES FROM THE SAID SIX PRIVATE LIMITED COMPANIES. IT IS NOTED FROM PARA NO.3 OF AO'S ORDER THE ASSESSEE EXPLAINED THE SAID DIFFERENCE VIDE REPLY DATED 10.01.2014 ALONG WITH A RECONCILIATION DIFFERENCES IN PURCHASES AS PER 26AS AND THE LEDGER ACCOUNT OF THE ASSESSEE IN THE BOOKS OF SAID SIX COMPANIES. THE ASSESSING OFFICER FOUND THE SUBMISSIONS OF ASSESSEE ARE NOT ACCEPTABLE FOR THE REASON THAT THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE AS TO HOW THE IT S RETURN UPLOADED BY THE PARTIES ARE INCORRECT OR THE BOOKS OF OTHER PARTIES ARE INCORRECT. WE NOTE THAT AS DISCUSSED ABOVE THE ASSESSING OFFICER FOUND DIFFERENCE IN PURCHASES BETWEEN ITS DATA AND BOOKS OF ACCOUNT , THE ASSESSING OFFICER DID NOT CONSIDER THE SAID DIFFERENC E OF PURCHASES FROM THE BOOKS OF ACCOUNT OF THE ASSESSEE AS THAT OF BOOKS OF 3 ITA NO. 1979 /PUN/201 7 GOLDEN STEEL CORPORATION ACCOUNT OF OTHER PARTIES. WE NOTE THAT THE ASSESSEE PRODUCED ALL THE BOOKS OF ACCOUNT OF OTHER PARTIES WHEREIN THE LEDGER ACCOUNT OF ASSESSEE IS REFLECTED, BUT HOWEVER, THE ASSES SING OFFICER WENT ON TO SAY THAT THE ASSESSEE DID NOT PRODUCE ANY SUBSTANTIAL EVIDENCE AND ITS RETURN FILED BY THE OTHER PARTIES AND THE BOOKS OF ACCOUNT OF OTHER PARTIES ARE INCORRECT. IN OUR OPINION, WE ARE NOT CONCERNED WITH THE OPENING AND CLOSING BAL ANCE OF ASSESSEE AS WELL AS THE OTHER PARTIES. THE ISSUE RELATING TO THE DIFFERENCE OF PURCHASES FOUND BETWEEN ITS AND BOOKS OF ACCOUNT. THEREFORE, WE DIRECT THE ASSESSING OFFICER TO EXAMINE THE BOOKS OF ACCOUNT OF ASSESSEE WITH THAT OF BOOKS OF ACCOUNT OF OTHER SIX PRIVATE LIMITED COMPANIES TO VERIFY THE PURCHASES MADE BY ASSESSEE FROM THE SAID COMPANIES ARE MATCHING OR NOT. THE LD. AR AND LD. DR REPORTED NO OBJECTION IN REMANDING THE ISSUE TO THE FILE OF ASSESSING OFFICER FOR ITS FRESH EXAMINATION IN T ERMS OF DISCUSSION MADE HEREINABOVE. THE ASSESSEE IS AT LIBERTY TO FILE ANY EVIDENCE AND THE ASSESSING OFFICER SHALL CONSIDER THE SAME BEFORE DECIDING THE ISSUE . THEREFORE, THE ONLY GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 1 5 T H JU LY , 20 20 . SD/ - SD/ - R.S. SYAL S.S. VISWANETHRA RAVI VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 1 5 T H JU LY , 20 20 GCVSR 4 ITA NO. 1979 /PUN/201 7 GOLDEN STEEL CORPORATION / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT 3. THE CIT (APPEALS) - 6 , PUNE. 4. THE PR. CIT - 5 , PUNE. 5. DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / SR. PRIVATE SECRETARY , / ITAT, PUNE