M.S.Venkataswamy Naidu, Coimbatore V. ITO, Coimbatore

ITA 2203/CHNY/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96294 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 12-10-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 05-12-2012
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Assessee Lawyers: D ANAND
• Section: 143(3)

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 2 203/MDS/2012 / ASSESSMENT YEAR :200 9 - 1 0 M.S. VENKATASWAMY NAIDU, 1082, AVANASHI ROAD, COIMBATORE 641 037. [PAN: A A OFM4407D ] VS. THE INCOME TAX OFFICER , WARD III(2) , RACE COURSE, COIMBATORE 641 01 8. ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI D. A NAND, ADVOCATE / RESPONDENT BY : SHRI A. B. KOLI , J CIT / DATE OF HEARING : 12 . 1 0 .201 5 / DATE OF P RONOUNCEMENT : 29 . 1 0 .201 5 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) I , C OIMBATORE , DATED 0 7 . 0 9 .20 1 2 RELEVANT TO THE ASSESSMENT YEAR 200 9 - 1 0 . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A REGISTERED FIRM DEALING WITH LUBRICANTS AND THE PARTNERS ARE SMT. K. SRIVALLI, SRI K. RAJESH AND SRI V. BALACHANDRAN. THE ASSESSEE HAS FILED ITS RETURN DECLARING INCOME I.T.A. NO . 2 203 /M/ 12 2 OF . 11,50,000/ - FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] AND LATER IT WAS SELECTED FOR SCRUTINY. NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISS UED TO THE ASSESSEE CALLING VARIOUS DETAILS. ON PERUSAL OF THE DETAILS FILED BY THE ASSESSEE, THE ASSESSING OFFICER HAS FOUND THAT THE SUNDRY CREDITORS OF THE BUSINESS WAS .5,43,83,556/ - AND AFTER VERIFICATION, IT WAS FOUND THAT THERE WAS CONSIDERABLE DIFFERENCE IN THE CREDIT BALANCE AS ADMITTED BY THE ASSESSEE AND THE SUPPLIERS OF MATERIALS. AFTER EXAMINING THE DETAILS FURNISHED DURING THE ASSESSMENT PROCEEDINGS, THE ASSES SING OFFICER HAS COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT BY ASSESSING TOTAL INCOME OF THE ASSESSEE AT .71,33,270/ - . 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) HAS CONFIRMED THE ORDER PASSED BY THE ASSESSING OFFICER. 4. ON BEING AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THE ASSESSING OFFICER HAS QUANTIFIED THE DIFFERENCE AT .59 ,83,271/ - AND MADE THE ADDITION, WHICH IS UNWARRANTED. SINCE THE ASSESSEE IS READY TO FURNISH LEDGER COPIES OF THE CREDITORS, THE LD. COUNSEL FOR THE ASSESSEE HAS PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE. I.T.A. NO . 2 203 /M/ 12 3 6. ON THE OTHER HAND, THE L D. DR HAS SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 7. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS FOUND CONSIDERABL E DIFFERENCE IN THE CREDIT BALANCE ADMITTED BY THE ASSESSEE AND THE SUPPLIERS OF MATERIALS. HOWEVER, THE ASSESSEE HAS NOT EXPLAINED PROPERLY OR FURNISHED LEDGER COPIES OF THE CREDITORS. DURING THE FIRST APPELLATE PROCEEDINGS, THE LD. CIT(A) HAS OBSERVED TH AT THE ASSESSEE HAS FILED ONLY LOOSE LEDGER SHEETS OF SOME PARTIES, WHERE THE BALANCES DIFFERED WITH THE RETURN OF INCOME FILED BY THE ASSESSEE. FURTHER, WHEN THE LD. CIT(A) HAS ASKED THE AR OF THE ASSESSEE TO RECONCILE THE DIFFERENCE OF CREDITORS AND TO F URNISH LEDGER COPIES OF THE CREDITORS, THE ASSESSEE HAS NOT FURNISHED THE DETAILS BEFORE THE LD. CIT(A). HOWEVER, BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS READY TO FURNISH LEDGER COPIES OF THE CREDITORS AND PRAYED FOR ONE MORE OPPORTUNITY MAY BE GIVEN. THEREFORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE ASSESSING OFFICER TO EXAMINE THE LEDGER COPIES OF THE CREDITORS AS MAY BE FURNISHED BY THE ASSESSEE AND DECI DE THE ISSUE AFRESH AFTER ALLOWING OPPORTUNITY OF HEARING TO THE ASSESSEE. I.T.A. NO . 2 203 /M/ 12 4 8 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 29 TH OCTOBER, 2015 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUN TANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 29 .1 0 .201 5 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.