ITO, New Delhi V. M/s. Shankar Gas & Manufacturing Co. Pvt. Ltd., New Delhi

ITA 2111/DEL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97461 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC 1
• Next Hearing Date: 21-09-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 09-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL
• Assessee Lawyers: RISHABH OSTWAL
• Section: 147

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- -- -1 11 1 : 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 . .. . 2111/DEL/2014 2111/DEL/2014 2111/DEL/2014 2111/DEL/2014 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2005 2005 2005 2005 - -- - 06 0606 06 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -8(1), 8(1), 8(1), 8(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S SHANKAR GAS & MANUFACTURING M/S SHANKAR GAS & MANUFACTURING M/S SHANKAR GAS & MANUFACTURING M/S SHANKAR GAS & MANUFACTURING CO.PVT.LTD., CO.PVT.LTD., CO.PVT.LTD., CO.PVT.LTD., 62 6262 62, G , G, G , G- -- -11, SECTOR 11, SECTOR 11, SECTOR 11, SECTOR- -- -15, 15, 15, 15, ROHINI, ROHINI, ROHINI, ROHINI, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 085. 110 085. 110 085. 110 085. PAN : AABCN5053E. PAN : AABCN5053E. PAN : AABCN5053E. PAN : AABCN5053E. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMRIT LAL, DR. RESPONDENT BY : SHRI RISHABH OSTWAL, CA. DATE OF HEARING : 21.09.2015 21.09.2015 21.09.2015 21.09.2015 DATE OF PRONOUNCEMENT : 05.10.2015 05.10.2015 05.10.2015 05.10.2015 ORDER ORDER ORDER ORDER THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 5-06 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XI, NEW DELHI DATED 17 TH JANUARY, 2014. 2. THE ONLY GROUND OF APPEAL OF THE REVENUE IS AS UND ER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN DELETING THE ADDITIONS OF RS.12,01 ,200/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ACCOMMODATION ENTRY. 3. LEARNED DR SUBMITTED THAT THE CREDITOR PARTY M/S A MIT TRADING CO. HAS DENIED THE ENTRY OF LOAN GIVEN TO THE ASSESSEE A ND, THEREFORE, THE ADDITION WAS RIGHTLY MADE BY THE ASSESSING OFFICER. HE REFERRED TO THE RELEVANT PORTION OF THE ASSESSMENT ORDER IN SUPPORT OF THE CASE OF ITA-2111/DEL/2014 2 THE REVENUE. HE SUBMITTED THAT LEARNED CIT(A) HAS WR ONGLY HELD THAT THE ACTION OF THE ASSESSING OFFICER U/S 147 OF THE INCOM E-TAX ACT, 1961 WAS AB-INITIO VOID. HE RELIED ON THE ORDER OF THE A SSESSING OFFICER. 4. LEARNED COUNSEL FOR THE ASSESSEE OPPOSED THE SUBMISSIONS OF THE LEARNED DR. HE SUBMITTED THAT THE REOPENING WAS DONE IN THIS CASE U/S 147 OF THE ACT AFTER EXPIRY OF FOUR YEARS FROM THE E ND OF THE RELEVANT ASSESSMENT YEAR. HE SUBMITTED THAT THERE WAS NO ACCOUNT OF M/S AMIT TRADING CO. AND ASSESSEE HAS NEVER ACCEPTED OR RECEIVED ANY CHEQUE OR INSTRUMENT OR CASH FROM THIS PARTY AND THEREFORE, T HE OPINION OF DIT(INVESTIGATION) WAS NON-EXISTENT AND THE REASONS RECO RDED WERE ILLEGAL AND COULD NOT BE SUSTAINED. HE RELIED ON THE ORDER OF THE LEARNED CIT(A). 5. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEARN ED CIT(A). I FIND THAT THE LEARNED CIT(A) HAS PASSED A WELL-REASONED ORDER ON THIS ISSUE BEFORE HIM. THE ASSESSEE HAS BEEN SUBMITTING RIGHT F ROM THE BEGINNING THAT NO SUCH AMOUNT WAS RECEIVED BY IT FROM M/S AMIT TRADING CO. AS AN ACCOMMODATION ENTRY AND THEREFORE, THE VERY BASIS OF PROCEEDINGS U/S 147 OF THE ACT WAS BAD IN LAW. THE COPY OF BANK ACCOUNT OF THE ASSESSEE WAS ALSO FILED. LEARNED CIT(A), AFTER CONSIDERING THE FACTS OF THE CASE, CONCLUDED THAT IT I S NOTICED THAT THERE WAS AN INHERENT COMMUNICATION GAP WHILE RECORDING PR OCEEDINGS U/S 147 OF THE ACT. LEARNED CIT(A) HAS CONCLUDED THAT I T IS APPARENT FROM THE RECORD THAT THE ASSESSING OFFICER HAS NEITHER EXAMIN ED THE EVIDENCE WHICH WAS SUPPLIED BY THE INVESTIGATION WING OF THE DEPARTMENT NOR APPLIED HIS MIND BEFORE ARRIVING AT T HE CONCLUSION THAT THE INCOME HAS ESCAPED ASSESSMENT IN THE HANDS OF THE ASSESSE E AND, THEREFORE, THE ASSESSING OFFICERS ACTION IN INITIATING PROCEEDINGS U/S 147 OF THE ACT WAS AB-INITIO VOID. THERE BEING NO M ISTAKE IN THE ORDER ITA-2111/DEL/2014 3 OF THE LEARNED CIT(A) ON THIS ISSUE AND SINCE THE DEPAR TMENT COULD NOT PROVE THE EXISTENCE OF ANY CREDIT ENTRY OF M/S AMIT T RADING CO., I HOLD THAT THERE WAS NO MISTAKE IN THE ORDER OF THE LEARNED CIT(A) ON THIS ISSUE, WHICH IS CONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . DECISION PRONOUNCED IN THE OPEN COURT ON 5 TH OCTOBER, 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 : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -8(1), NEW DELHI. 8(1), NEW DELHI. 8(1), NEW DELHI. 8(1), NEW DELHI. 2. RESPONDENT : M/S SHANKAR GAS & MANUFACTURING CO.PVT .LTD., M/S SHANKAR GAS & MANUFACTURING CO.PVT.LTD., M/S SHANKAR GAS & MANUFACTURING CO.PVT.LTD., M/S SHANKAR GAS & MANUFACTURING CO.PVT.LTD., 62, G 62, G 62, G 62, G- -- -11, SECTOR 11, SECTOR 11, SECTOR 11, SECTOR- -- -15, ROHINI, NEW DELHI 15, ROHINI, NEW DELHI 15, ROHINI, NEW DELHI 15, ROHINI, NEW DELHI 110 085. 110 085. 110 085. 110 085. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR