M/s. Pearl Agencies, New Delhi V. ACIT, New Delhi

ITA 2261/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7356 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Next Hearing Date: 07-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 15-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RASMITA JHA
• Assessee Lawyers: R K KAPOOR
• Keywords: Additional evidence

Judgement Text

1 ITA NO. 22 61/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT ME MBER & SMT. BEENA PILLAI, JUDICIAL MEMBER I.T.A .NO.-2261/DE L/2014 (ASSESSMENT YEAR-2008- 09) PEARL AGENCIES, 204, ROHIT HOUSE, 3, TOLSTOY MARG, NEW DELHI. AAAFP406IE VS ACIT, CIRCLE 31(1), NEW DELHI. APPELLANT BY SH. R.K. KAPOOR, CA RESPONDENT BY SMT. RASMITA JHA, SR. DR ORDER PER BEENA PILLAI, JUDICIAL MEMBER : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)S-19, NEW DELHI VIDE HIS OR DER DATED 07/03/2014 FOR A.Y. 2008-09 ON THE FOLLOWING GROUND S: 1. THAT THE ORDER PASSED BY THE LD. CIT(A) UPHOLDIN G THE ACTION OF THE ASSESSING OFFICER REGARDING ADDITION OF RS. 51,66,836/- ON ACCOUNT OF ALLEGED DIFFERENCES IN TH E BALANCES OF CREDITORS IS BAD IN LAW AND ON THE FACT S OF THE ASSESSEES CASE. 2. THAT THE LD. CIT(A) HAS GROSSLY ERRED IN LAW IN REJECTING THE ADMISSION OF ADDITIONAL DOCUMENTS/EVIDENCES FILED BEFORE HIM ON FRIVOLOUS GROUNDS. DATE OF HEARING 07.12.2015 DATE OF PRONOUNCEMENT 15.01.2016 2 ITA NO. 22 61/DEL/2014 2.1 THAT THE LD. CIT(A) OUGHT TO HAVE APPRECIATED T HAT ADDITIONAL EVIDENCE FILED AS PER RULE 46A WAS LEGAL LY AND PROPERLY FILED AND SHOULD HAVE ADMITTED THE SAM E. 3. THAT THE CIT(A) HAS GROSSLY ERRED IN LAW AND ON FA CTS OF THE ASSESSEES CASE IN CONFIRMING THE ADDITION I N RESPECT OF OLD OUTSTANDING CREDITORS ALTHOUGH IN SO ME OF THE CASES THE BALANCE CONFIRMED EXCEEDED THE AMOUNT THAT WAS BEING SHOWN OUTSTANDING IN THE BOOKS OF TH E ASSESSEE. 4. THAT THE CIT(A) HAS GROSSLY ERRED IN LAW IN CONFIR MING THE ACTION OF THE ASSESSING OFFICER TO APPLY THE PROVISIONS OF SECTION 41(1) OF THE INCOME TAX ACT. 5. THAT THE CIT(A) HAS CONFIRMED THE ADDITION BASED O N CONJECTURE AND SURMISES WITHOUT APPLYING HIS MIND T O THE FACTS OF THE ASSESSEES CASE. 6. THAT THE ORDER PASSED BY THE CIT(A) CONFIRMING THE ORDER OF THE ASSESSING OFFICER IS BAD IN LAW AND IS PRAYED TO BE QUASHED. 2. IN GROUND NO. 2.1 THE ASSESSEE HAS RAISED A GROU ND REGARDING NON ADMISSION OF ADDITIONAL EVIDENCE FILED UNDER RU LE 46A BY THE LD. CIT(A) DURING THE APPELLATE PROCEEDINGS. IT IS BRO UGHT TO OUR NOTICE THAT THE LD. CIT(A) HAD CALLED FOR THE REMAND REPOR T, WHEREIN IN THE REMAND REPORT THE LD. ASSESSING OFFICER HAD LEFT IT TO THE WISDOM OF THE LD. CIT(A) TO ADMIT THE ADDITIONAL EVIDENCE. T HE ADDITION MADE BY THE LD. ASSESSING OFFICER IS IN RESPECT OF BALAN CES UNDER THE HEAD SUNDRY CREDITORS. IT IS, THEREFORE, NECESSARY TO VERIFY THE GENUINENESS OF THE DOCUMENTS PRODUCED BY THE ASSESS EE DURING THE FIRST APPELLATE PROCEEDINGS. 3. UNDER SUCH CIRCUMSTANCES, WE ARE OF THE CONSIDER ED OPINION THAT IN ORDER TO IMPART SUBSTANTIAL JUSTICE TO ASSE SSEE THE MATTER NEEDS TO BE RESTORED BACK TO THE FILE OF AO FOR PAS SING THE 3 ITA NO. 22 61/DEL/2014 ASSESSMENT ORDER DENOVO. ACCORDINGLY, WE SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF A O TO PASS THE ASSESSMENT ORDER DENOVO . NEEDLESS TO SAY THAT THE ASSESSEE MAY BE ISSUED PROPER NOTICE AND OPPORTUNITY MAY BE GRAN TED TO REPRESENT THE CASE. THE ASSESSING OFFICER IS FREE TO MAKE ALL THE NECESSARY ENQUIRIES/INVESTIGATIONS IN RESPECT OF TH E SAME. 4. ACCORDINGLY, THE APPEAL FILED BY THE ASSESSEE IS STATISTICALLY ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 15.01. 2016 SD/- SD/- (N.K. SAINI) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15.01.2016 *KAVITA, P.S. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 22 61/DEL/2014 DATE 1. DRAFT DICTATED ON 15.12.15 2. DRAFT PLACED BEFORE AUTHOR 16.12.15 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 15.01.2016 7. FILE SENT TO THE BENCH CLERK 20.01.2016 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.