H.S. Management Institute (P) Ltd., Moradabad V. ITO, New Delhi

ITA 233/DEL/2012

• Counselvise Citation: 23320114 RSA 2012
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 15-03-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 13-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y S KAKKAR
• Assessee Lawyers: G RAJA KUMAR
• Section: 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C: NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SH. A.D. JAIN, JUDICIAL MEMBER ITA NO. 233/DEL/2012 ASSESSMENT YEAR: 2006-07 H.S. MANAGEMENT INSTITUTE (P) LTD., C/O SH. SOMNATH GANDHI, 6, PANCHSHEEL COLONY, CIVIL LINES, MORADABAD. AABCH8247A VS. ITO, WARD-12(4), NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SH. K. SAMPATH & SH. G. RAJA KUMAR, ADV. RESPONDENT BY : MS. Y.S. KAKKAR, SR. DR O R D E R PER S.V. MEHROTRA, A.M. THIS APPEAL IS FILED BY THE ASSESSEE AND DIRECTED AGAINST THE ORDER OF LD. CIT(A) DATED 24.11.2011 FOR THE A.Y. 2006-07 . 2. BRIEF FACTS OF THE CASE ARE THAT IN THE RELEVANT ASSESSMENT YEAR, THE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF PRO VIDING TRAINING AND EDUCATION SERVICES AND MANAGEMENT CONSULTANCY. IT HAD FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME AT RS. NIL. 3. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO P ROVE THE IDENTITY, GENUINENESS OF THE TRANSACTION AND CREDITWORTHINESS OF THE CREDITOR AGGREGATING TO RS. 14,11,000/-. HE HAD ISSUED SUMM ONS U/S 131 TO SH. SAMIR KUMAR AND SH. HOSHIAR SINGH ON 10.11.2008 REQ UIRING THEM TO APPEAR ON 17.11.2008. SINCE NONE APPEARED, HE AGAI N GAVE AN OPPORTUNITY TO THE ASSESSEE VIDE ORDER SHEET DATED 10.12.2008 PROVIDING ITA NO. 233/D/2012 2 FINAL OPPORTUNITY TO SUBSTANTIATE HIS CLAIM. BUT T HE ASSESSEE DID NOT AVAIL THIS OPPORTUNITY ALSO AND, THEREFORE, HE MADE AN AD DITION OF RS. 14,11,000/-. LD. CIT(A) CONFIRMED THE ADDITION OBS ERVING THAT INSPITE OF AMPLE OPPORTUNITIES, NO DETAILS/EVIDENCES WERE FILE D TO PROVE ABOUT THE GENUINENESS OF TRANSACTION AND CREDITWORTHINESS OF THE CREDITOR. THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF APPEAL: - 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS. 14,11,00 0/- MADE BY THE AO U/S 68 OF THE INCOME-TAX ACT, 1961. 2. THAT THE ASSESSEE HAS NOT COMMENCED OR STARTED IN D OING BUSINESS ACTIVITIES OR IN THE ACTIVITIES TO EARN INCOME. TH E ADDITION MADE BY THE LD. AO OF RS. 14,11,000/- AND CONFIRMED BY THELD. COMMI SSIONER OF INCOME- TAX (APPEALS) IS ARBITRARY, ILLEGAL, UNJUSTIFIED AN D AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND HAVE PERUSED THE RECORD OF THE CASE. ADMITTEDLY THE AO HAD ISSUED SUMMONS ON 10.11.2008 AND PASSED THE ASSESSMENT ORDER ON 22 .12.2008. THEREFORE, THE ASSESSEE DID NOT GET SUFFICIENT TIME TO PRODUCE THE CREDITORS. WE, THEREFORE, CONSIDER IT IN THE INTER EST OF JUSTICE THAT THE MATTER BE RESTORED BACK TO THE FILE OF THE AO FOR P ROVIDING REASONABLE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE HIS CLA IM. ACCORDINGLY, WE SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER BA CK TO THE FILE OF AO FOR DECIDING THE ISSUE DENOVO. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15.03.2012 SD/- SD/- (A.D. JAIN) JUDICIAL MEMBER (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 15.03.12 *KAVITA ITA NO. 233/D/2012 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR