Northern Medi- AIDS (India) Pvt. Ltd., Meerut V. Addl. CIT, Meerut

ITA 202/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74274 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 12-02-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 11-01-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 68

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 E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV, ,, , JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO. .. .202/DEL/2013 202/DEL/2013 202/DEL/2013 202/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2004 2004 2004 2004- -- -05 0505 05 M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI- -- -AIDS AIDS AIDS AIDS (INDIA) PRIVATE LIMITED, (INDIA) PRIVATE LIMITED, (INDIA) PRIVATE LIMITED, (INDIA) PRIVATE LIMITED, 183, SAKET, 183, SAKET, 183, SAKET, 183, SAKET, MEERUT. MEERUT. MEERUT. MEERUT. PAN : AAACN4599C. PAN : AAACN4599C. PAN : AAACN4599C. PAN : AAACN4599C. VS. VS. VS. VS. ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, MEERUT. MEERUT. MEERUT. MEERUT. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.P. RASTOGI, ADVOCATE. RESPONDENT BY : SHRI KEYUR PATEL, SR.DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), MEERUT DATED 12 TH OCTOBER, 2012 FOR THE AY 2004-05. 2. THE ASSESSEE HAS RAISED VARIOUS GROUNDS OF APPEAL. HOW EVER, THEY ARE ALL AGAINST THE ADDITION OF ` 1,59,000/- MADE BY THE ASSESSING OFFICER UNDER SECTION 68 OF THE INCOME-TAX ACT, 196 1. 3. THE FACTS OF THE CASE ARE THAT DURING THE ACCOUNTI NG YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION, TH E ASSESSEE COMPANY CLAIMED TO HAVE RECEIVED THE SHARE APPLICATI ON MONEY AMOUNTING TO ` 3,50,000/-. THE ASSESSING OFFICER ACCEPTED THAT THE ASSESSEE FURNISHED CONFIRMATION OF FIRST TEN PERSONS AMOUNT ING TO ` 1,90,000/- BUT NO CONFIRMATION WAS FURNISHED FROM T HE REMAINING APPLICANTS. ACCORDINGLY, HE ADDED THE SAME AT ` 1,60,000/-. BEFORE THE LEARNED CIT(A), IT WAS POINTED OUT BY THE ASSESSEES COUN SEL THAT THERE ITA-202/D/2013 2 WAS AN ARITHMETICAL MISTAKE. THE ACTUAL AMOUNT RECEI VED FROM THE SHARE APPLICANTS WAS ` 1,59,000/- AND NOT ` 1,60,000/-. IT WAS ALSO POINTED OUT THAT THE ASSESSEE HAS FURNISHED THE COPY OF SH ARE APPLICATION AS WELL AS PROOF OF IDENTITY IN THE FORM OF VOTER ID/DRIVING LICENSE. HOWEVER, THE CIT(A) DID NOT ACCEPT THE ASSESSE ES CONTENTION. HE ONLY GAVE THE RELIEF OF ` 1,000/- I.E. THE ARITHMETICAL MISTAKE AND SUSTAINED THE ADDITION OF ` 1,59,000/-. AGGRIEVED BY THE ORDER OF LEARNED CIT(A), THE ASSESSEE IS IN APPEAL. 4. AT THE TIME OF HEARING BEFORE US, IT WAS CLAIMED BY THE ASSESSEE THAT THE ASSESSEE HAD FURNISHED THE PRIMA-FACIE EVIDENCE OF RECEIPT OF SHARE APPLICATION MONEY I.E., THE APPLICATION FORM S UBMITTED BY THE SHARE APPLICANTS AS WELL AS PROOF OF THEIR IDENTITY. IF THAT WAS NOT CONSIDERED SUFFICIENT BY THE ASSESSING OFFICER, HE COULD HAVE EITHER ISSUED SUMMONS TO THE CONCERNED SHARE APPLICANTS OR WOULD HAVE ASKED THE ASSESSEE TO FURNISH THE CONFIRMATION. THE ASSESSI NG OFFICER, WITHOUT ALLOWING ANY FURTHER OPPORTUNITY TO THE ASSESSE E, MADE THE ADDITION OF ` 1,60,000/- WHICH IS REDUCED TO ` 1,59,000/- BY THE LEARNED CIT(A). HE, THEREFORE, SUBMITTED THAT EITHER THE AD DITION OF ` 1,59,000/- SUSTAINED BY THE CIT(A) SHOULD BE DELETED OR THE MATTE R SENT BACK TO THE FILE OF THE ASSESSING OFFICER FOR ALLOWING ADEQUATE OPPORTUNITY TO THE ASSESSEE. 5. LEARNED DR, ON THE OTHER HAND, VEHEMENTLY OBJECT ED TO THE DELETION OF THE ADDITION. HOWEVER, HE HAD NO SERIOU S OBJECTION IN SENDING THE MATTER BACK TO THE FILE OF THE ASSESSING OFF ICER. 6. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES AN D PERUSING THE MATERIAL PLACED BEFORE US, WE SET ASIDE THE ADDITI ON OF ` 1,59,000/- AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFI CER WITH THE DIRECTION THAT HE SHOULD ALLOW ADEQUATE OPPORTUNITY OF BEING HEARD TO ITA-202/D/2013 3 THE ASSESSEE AND THEREAFTER PASS A SPEAKING ORDER CONSIDERI NG ALL THE EVIDENCES PLACED BEFORE HIM. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2014. SD/- SD/- ( (( (RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 28.02.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI M/S NORTHERN MEDI- -- -AIDS (INDIA) PRIVATE LIMITED, AIDS (INDIA) PRIVATE LIMITED, AIDS (INDIA) PRIVATE LIMITED, AIDS (INDIA) PRIVATE LIMITED, 183, SAKET, MEERUT. 183, SAKET, MEERUT. 183, SAKET, MEERUT. 183, SAKET, MEERUT. 2. RESPONDENT : ADDITIONAL COMMISSIONER OF INCOME TA X, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, MEERUT. MEERUT. MEERUT. MEERUT. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR