M/s Vinay Wires & Poly Products Pvt. Ltd., Kanpur V. Astt. Commissioner of Income Tax, Kanpur

ITA 234/LKW/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4305 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 06-06-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 17-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 40A(3); 68

Judgement Text

I.T.A. NO.234/LKW/15 ASSESSMENT YEAR:2003-04 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI P. K. BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO.234/LKW/2015 ASSESSMENT YEAR:2003-04 M/S VINAY WIRES & POLY PRODUCTS PVT. LTD., 16/40, CIVIL LINES, KANPUR. PAN:AAACV9649K VS. A.C.I.T., RANGE-4, KANPUR. (APPELLANT) (RESPONDENT) O R D E R PER P. K. BANSAL, A.M. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-I, KANPUR DATED 28/02/2014 RELATING TO ASSES SMENT YEAR 2003-04. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO T HE SUSTENANCE OF ADDITION OF RS.35 LAC MADE BY THE ASSESSING OFFICER U/S 68 OF THE ACT. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS, CAREFULLY C ONSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW. WE NOTED THAT THE APPELLANT BY SHRI ABHINAV MEHROTRA, ADVOCATE SHRI JITENDRA KUMAR YADAV, ADVOCATE RESPONDENT BY S HRI AMIL NIGAM, D. R. DATE OF HEARING 06/06/2016 DATE OF PRONOUNCEMENT 27/07/2016 I.T.A. NO.234/LKW/15 ASSESSMENT YEAR:2003-04 2 ADDITION HAS BEEN MADE BY THE ASSESSING OFFICER AND CONFIRMED BY CIT(A) IN RESPECT OF THE ADVANCE RECEIVED BY THE ASSESSEE FROM VARIOUS PARTIES NAMELY M/S AMIT LAMINATORS, M/S JAISWAL POLYPACK, S HRI SHYAM LAL GUPTA & M/S ANUPAM LAMINATORS, M/S VINEET LAMINATORS, M/S PACK BELL PRODUCTS, SHRI MALKHAN SINGH TOMAR, M/S VIKAS TRADE RS, M/S PRABHU KRIPA PINERS, SHRI ADITYA TRIPATHI AND SHRI SUMIT LAMINAT ORS & PRINTERS. THE ASSESSEE HAD MADE SALES TO THESE PARTIES AND THE AD VANCE RECEIVED BY THE ASSESSEE FROM THESE PARTIES HAS BEEN DULY ADJUS TED AGAINST THE SALES MADE FROM THESE PARTIES. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS, CAREFULLY C ONSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW AND PERUSED THE AUDITED PROFIT & LOSS ACCOUNT AND THE COPY OF LEDGE R ACCOUNT OF THESE PARTIES. THE COPY OF THE LEDGER ACCOUNT OF THESE P ARTIES IS AVAILABLE IN THE PAPER BOOK AT PAGES 28 TO 39. WE NOTED THAT THE AS SESSEE HAS RECEIVED THE ADVANCE AND SUBSEQUENTLY MADE THE SALE TO THESE PARTIES. THE ADVANCE RECEIVED BY THE ASSESSEE HAS BEEN ADJUSTED AGAINST THE SALE BILL. THE ACCOUNTS OF THE ASSESSEE ARE DULY AUDITED. THI S IS NOT A CASE WHERE THE BOOKS OF ACCOUNT MAINTAINED BY THE ASSESSEE HAV E BEEN REJECTED BY THE ASSESSING OFFICER OR BY THE CIT(A). ONCE THE S ALES SHOWN BY THE ASSESSEE HAS DULY BEEN ACCEPTED, THERE IS NO QUESTI ON OF MAKING THE ADDITION IN RESPECT OF THE ADVANCE RECEIVED BY THE ASSESSEE FOR MAKING THE SALE TO BE ADDED U/S 68 OF THE ACT. THE ASSESS ING OFFICER, WHILE MAKING THE ADDITION, GOT IMPRESSED WHILE THE PURCHA SER WILL MAKE THE PAYMENT TO THE ASSESSEE IN CASH IN VIEW OF THE PROV ISION OF SECTION 40A(3) OF THE ACT. THE BASIS SO ADOPTED BY THE ASSESSING OFFICER FOR MAKING THE ADDITION DOES NOT HAVE ANY LEG TO STAND. ONCE THE SALES HAVE BEEN ACCEPTED AND THE ADVANCE RECEIVED BY THE ASSESSEE H AS BEEN ADJUSTED I.T.A. NO.234/LKW/15 ASSESSMENT YEAR:2003-04 3 AGAINST THE SALES REGULARLY, THE NATURE AND SOURCE OF THE ADVANCE IS PROVED AS THE AMOUNT REPRESENT THE SALE CONSIDERATI ON RECEIVED BY THE ASSESSEE IN ADVANCE. WE, THEREFORE, SET ASIDE THE O RDER OF CIT(A) AND DELETE THE ADDITION OF RS.35 LAC. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 27/07/2016) SD/. SD/. ( MAHAVIR PRASAD ) ( P. K. BANSAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:27/07/2016 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR