Smt. Sonalben Dipakbhai Nanavati, Surat V. The ACIT, Circle - 6, Surat

ITA 2032/AHD/2013

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1905 (ITAT-SURAT)
• Duration Of Justice: 5 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-06-2017
• Assessment Year: 2004-2005
• Appeal Filed On: 30-07-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRASENJIT SINGH
• Assessee Lawyers: HIREN M DIVAN
• Section: 68; 144; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH ES, SURAT BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SONALBEN DIPAKBHAI NANAVATI, PROP: M/S. KADODARA TYRES SALES & SERVICES, LAKDAWALA SHOPPING CENTRE, NATIONAL HIGHWAY ROAD NO. 8, KADODARA CHAR RASTA, SURAT - 394327 PAN: AAMPN4782G (APPELLANT) VS THE ACIT, CIRCLE - 6 , SURAT (RES PONDENT) REVENUE BY : S H RI PRASENJIT SINGH , CIT - D . R. ASSESSEE BY: SHRI HIREN M. DIVAN, A.R. DATE OF HEARING : 16 - 11 - 2 018 DATE OF PRONOUNCEMENT : 29 - 01 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2004 - 05 , ARI SES FROM ORDER OF THE CIT(A) - I, SURAT DATED 01 - 05 - 2 013 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 254 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . I T A NO . 2032 / A HD/20 13 A S SESSMENT YEAR 200 4 - 05 I.T.A NO. 2032 /AHD/20 13 A.Y. 2004 - 05 PAGE NO SON ALBEN DIPAKBHAI NANAVATI VS. ACIT 2 2. THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION OF LD. CIT(A) IN CONFIRMING THE ADDITION TO THE TUNE OF RS. 9 , 50 , 220/ - U/S. 68 OF THE ACT. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US AS PER PAPER BOOK FURNISHED ON 11THE JU NE, 2018 PAGE NO. 23 THE ASSESSEE HAS BIFURCATED THE AFORESAID ADDITION TO THE FOLLOWING FOUR PART S AS UNDER: - SR. NO. AMOUNT NATURE OF CREDIT ENTRIES REMARK 1. 4,80,390/ - FROM THESE CUSTOMERS THE APPELLANT RECEIVED THE ADVANCES AGAINST SALES. NOT PRESSED 2. 1,77,055/ -- FROM CONCERNED PARTIES THE ADVANCE AGAINST SALES WERE INITIALLY CREDITED IN THE NAME OF ONE CUSTOMER WHEREAS ON PREPARATION OF FINAL BILL OF SALE THE ADVANCE AMOUNTS WERE TRANSFERRED TO THE NAMES OF THE PARTIES IN WHOSE NA ME THE SALES BILLS ARE PREPARED. NOT PRESSED 3. 2,13,443/ - THERE ARE 11 PARTIES FROM WHOM THE SALES CONSIDERATIONS TOTALLING TO RS. 2,13,443/ - WERE MISTAKENLY CREDITED IN THE BOOKS OF ACCOUNTS OF THE APPELLANT WHEREAS THE SALES TO SUCH 11 PARTIES WERE MADE BY THE SISTER CONCERN M/S. SURAT TYRES. PRAYED TO BE DELETED. 4. 34,332/ - OTHER ADVANCES FROM CUSTOMERS AGAINST SALES NOT PRESSED. AS ABOVE , THE ASSESSE HAS ONLY PRESSED DISALLOWANCE TO THE AMOUNT OF RS . 2 , 13 , 443/ - THE SAME IS ADJUDICATED AS UNDER: - 3. THE BRIEF FACT OF THE CASE IS THAT IN THIS C A SE ASSESSMENT U/S. 144 OF THE ACT WAS COMPLETED ON 19 TH DECEMBER, 2006 ON A TOTAL INCOME OF RS. I.T.A NO. 2032 /AHD/20 13 A.Y. 2004 - 05 PAGE NO SON ALBEN DIPAKBHAI NANAVATI VS. ACIT 3 26 , 43 , 291/ - AND MADE ADDITION U/S. 68 OF THE ACT TO THE AMOUNT OF RS. 1545421/ - . ON APPEAL , THE LD. CIT(A) HAS DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. ON FURTHER APPEAL BY THE DEPARTMENT THE COORDINATE BENCH OF THE ITAT AHMEDABAD BENCH HAS RESTORED THE ISSUE OF ABOVE ADDITION TO THE FILE OF ASSESSIN G OFFICER TO BE DECIDED AFRESH IN ACCORDANCE WITH THE LAW AFTER AFFORDING OPPORTUNITY TO THE ASSESSEE . IN THE SET ASIDE PROCEEDINGS, THE ASSESSING OFFICER HAS FINALIZED THE ASSES SMENT U/S. 143(3) R.W. SECTION 254 OF THE ACT ON 30 TH AUGUST, 2011 AND A GAIN ADDED THE AMOUNT OF RS. 15 , 25 , 677/ - U/S. 68 OF THE ACT ON THE GROUND THAT ASSESSEE HAS FAILED TO SUBSTANTIATE ITS CLAIM O F SUNDRY CREDITOR WITH SUPPORTING PROOF AND EVIDENCES. 4. AGGRIEVED ASSESSEE HAS FILED BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE AND RESTRICTED THE ADDITION TO THE EXTENT OF RS. 9 , 05 , 220/ - . THE ISSUE PRESSED IN THE GROUND OF APPEA L OF THE ASSESSEE OF ADDITION OF RS. 2 , 13 , 443 PERTAINED TO 11 PARTIES AND THE ASSESSEE CLAIMED TH AT SALES TO TH ESE PARTIES WERE MADE IN THE NEXT ASSESSMENT YEAR 2005 - 06 BY HIS SISTER CONCERN NAMELY M/S. SURAT TYRE AND OIL CENTRE. THE ASSESSEE HAS FILED A CONFIRMATION FROM HINABEN H. NANAVATI, PROPRIETARY OF SURAT TY ERS STATING THAT INADVERTENTL Y THE AFORESAID AMOUNTS WAS CREDITED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE WHICH IN FACT WERE TO BE CREDITED IN THE BOOKS OF ACCOUNT OF T HE AFORESAID SISTER CONCERN OF T HE ASSESESSEE. THE LD. CIT(A) HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND C ONFIRMED THE ADDITION FOR WANT OF ADDRESS AND CONFIRMATION . I.T.A NO. 2032 /AHD/20 13 A.Y. 2004 - 05 PAGE NO SON ALBEN DIPAKBHAI NANAVATI VS. ACIT 4 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. THE LD. CIT(A) HAS CONFIRMED THE ADDITION TO THE AMOUNT OF RS. 9 , 50,220/ - U/S. 68 OF THE C AT. DURING THE COURSE OF APPELLATE PROCEEDINGS VIDE P AGE NO. 23 OF T HE PAPER BOOK THE ASSESSEE HAS NOT PRESSED THE FOLLOWING ADDITIONS O F THE AFORESAID IMPUG NE D DISALLOWANCE S MADE BY THE ASSESSING OFFICER SR. NO. AMOUNT. 1. RS. 4,80,390/ - 2. RS. 177055/ - 3. RS. 34332/ - HOWEVER , THE ASSESSEE HAS PLEADED TO DELETE THE ADDITION TO THE EXTENT OF R S. 2 , 13 , 443/ - WHICH WAS INADVERTENTLY CREDITED IN T H E BOOKS OF ACCOUNT OF THE A S SESEE WHEREAS THE SALES TO THE 11 PARTIES CONNECTED TO THE ABOVE PERSONS WE RE MADE BY THE SISTER CONCERN OF THE ASSS ESSEE M/S SURAT TYRES. IN THI S CONNECTION , WE HA V E NOTICED THAT DURING THE CO U RS E OF APPELLATE PROCEEDINGS BEFORE THE LD. CIT(A) VIDE SUBMISSION DATED ON 12 - 01 - 2013 THE A SSESSEE HAS EXPLAINED AT PAGE NO S. 18 TO 19 AND PAGES NOS. 11 1 TO 121 T HAT SALE OF TYRES WERE MADE BY HIS SISTER CONCERN M/S SURAT TYRES AND O IL CENTRE. THE ASSESSEE HAD ALSO SUBMITTED BEFORE THE LD. CIT(A) THE LEDGE R ACCOUNT REFLECTING CORRECTION ENTRIES MADE IN THE SUBSEQUENT ASSESSMENT YEAR 2 005 - 06. IT IS NOTICED THAT THE LD. CIT(A) HAS NOT CONS IDER ED THE AFORESAID SUBMISSION SUPPORTING WITH LEDGER ACCOUNT , SALES BILLS AND RELEVANT PAGES OF AUDIT REPORT FOR ASSESSMENT YEAR 2004 - 05 DE M ONSTRA T IN G THAT THE IMPUGNED SALES WERE DULY REFLECTED I N THE ACCOUNT OF SISTER CONCERN OF THE ASSESSEE M/S I.T.A NO. 2032 /AHD/20 13 A.Y. 2004 - 05 PAGE NO SON ALBEN DIPAKBHAI NANAVATI VS. ACIT 5 SURAT TYRES AND OIL CENTER . THIS DISCREPANCY WAS ALSO CORRECTED BY THE ASSSESSEE AND HIS SISTER CONCERN BY PASSING CORRECTION ENTRIES AS ON 01 - 04 - 2004. IN THE LIGHT OF THE ABOVE FACT AND MATERIAL ON RECOR D, WE OBSERVE THAT THE LD. CIT(A) IS NOT JUSTIFIED IN IGNORING T HE AFORESAID SUBMISSION OF THE ASSESSSEE, THEREFORE, WE D ELETE THE ADDITION TO THE EXTENT OF RS. 1,51,640/ - AS PER THE DETAIL ON PAGE NO. 19 TO 20 OF THE PAP ER BOOK A S THE SAID SUNDRY CREDITOR S WERE REPORTED BY THE SISTER CONCERN OF THE ASSESSEE AS ELABORATED SUPRA IN THIS ORDER. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 29 - 01 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 29 /01/2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. C ONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,