Rajamahendri Fibros Pvt Ltd, Dowlaiswaram V. Addl CIT, Rajahmundry

ITA 207/VIZ/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0791 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-04-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 04-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Keywords: Set aside

Judgement Text

ITA NO. 207/VIZAG/2009 RAJAMAHENDRI PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.207/VIZAG/2009 ASSESSMENT YEAR: 2005-06 RAJAMAHENDRI FIBRES LTD., DOWLAISWARAM VS. ACIT, RANGE, RAJAHMUNDRY (APPELLANT) PAN NO: AACFR 6288 J (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI G.S.S. GOPINATH, DR ORDER PER SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER: THE APPEAL OF THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE CIT (A) ON A SOLITARY GROUND THAT THE CIT (A) IS NOT JU STIFIED IN SUSTAINING THE ADDITION OF RS.153,050/- MADE BY THE ASSESSING OFFI CER TOWARDS PURCHASES MADE FROM M/S GAYATHRI COIR CORPORATION. IN THIS RE GARD WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND DOCUMENTS PLACED ON RECORD AND WE FIND THAT THE AO HAS DISALLOWED THE PURCHASE OF RAW MATERIAL FROM THE GAYATHRI COIR CORPORATION AT RS.1,58,590/- AFTER HAVING NOTED SOME DEFICIENCIES THEREIN AND ALSO FOR THE REASONS THAT THE ASSESSEE COULD NOT PRODUCE THE CON FORMITY LETTERS. 2. AN APPEAL WAS PREFERRED BEFORE THE CIT (A) WITH THE SUBMISSIONS THAT ALL THE DETAILS WERE FURNISHED BEFORE THE AO T O PROVE THE GENUINENESS OF THE PURCHASES FROM THE GAYATHRI COIR CORPORATION , BUT CIT (A) WAS NOT CONVINCED WITH THE EXPLANATIONS OF THE ASSESSEE. HE HOWEVER, RESTRICTED THE DISALLOWANCE OF RS.1,53,050/-. NOW THE ASSESSEE IS BEFORE US WITH THE SUBMISSIONS THAT HE HAS PLACED ALL RELEVANT EVIDENC E ALONG WITH THE BOOKS OF ACCOUNTS BEFORE THE AO TO PROVE THE GENUINENESS OF THE PURCHASES BUT ITA NO. 207/VIZAG/2009 RAJAMAHENDRI PAGE 2 OF 2 LOWER AUTHORITIES WERE NOT CONVINCED WITH THE EXPLA NATIONS OF THE ASSESSEE. THE LD DR SIMPLY PLACED RELIANCE ON THE ORDER OF TH E CIT (A). 3. WE HAVE CAREFULLY EXAMINED THE ORDERS OF THE LOW ER AUTHORITIES IN THE LIGHT OF THE RIVAL SUBMISSIONS AND WE FIND THAT THE ASSESSEE HAS PLACED THE RELEVANT MATERIAL IN ORDER TO PROVE THE GENUINENESS OF THE PURCHASES BEFORE THE AO BUT HE DID NOT EXAMINE THE SAME PROPERLY. SI MILAR IS THE POSITION IN APPEAL OF THE CIT (A) WHO HAD OVER LOOKED THE EVIDE NCE FILED BY THE ASSESSEE. SINCE THE ASSESSEE HAS PLACED RELEVANT EV IDENCE TO PROVE GENUINENESS OF THE PURCHASES, WE FIND NO JUSTIFICAT ION IN THIS DISALLOWANCE. ACCORDINGLY WE SET ASIDE THE ORDER OF THE CIT (A) A ND DIRECT THE AO TO DELETE THE ADDITION. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOW ED. PRONOUNCED IN THE OPEN COURT ON 5 TH MAY, 2010. SD/- SD/- (B R BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PVV/SPS VISAKHAPATNAM, DATE: 05-05-2010. COPY TO 1 M/S RAJAMAHENDRI FIBRES (P) LTD., E-19 INDUSTRIAL ESTATE, DOWLAISWARAM 533 124, EAST GODAVARI DISTRICT. 2 THE ACIT, RANGE, RAJAHMUNDRY 3 4 THE CIT RAJAHMUNDRY THE CIT (A) RAJAHMUNDRY 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM