The ITO, Ward-3(2), JAMNAGAR V. Shri Nitinkumar Muljibhai Vora, JAMNAGAR

ITA 238/RJT/2011

• Counselvise Citation: 23824914 RSA 2011
• Duration Of Justice: 2 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-04-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH BEFORE: SHRI D.K. TYAGI , JUDICIAL MEMBER AND SHR I A. MOHAN ALANKAMONY , ACCOUNTANT MEMBER INCOME TAX OFFICER, WARD 3(2) JAMNAGAR (APPELLANT) VS SHRI NITINKUMAR MULJIBHAI VORA PROP OF M/S VORA INDUSTRIES, SHED NO. C/17, M P SHAH GIDC, SARU SECTION ROAD, JAMNAGAR (RESPONDENT) REVENUE BY : SRI AVINASH KUMAR , D . R. ASSESSEE BY: SRI CHETAN AGARWAL , A.R. DATE OF HEARING : 25 - 04 - 2013 DATE OF PRONOUNCEMENT : 06 - 0 6 - 2013 / ORDER P ER : D.K. TYAGI , JUDICIAL MEMBER : - TH IS IS THE REVENUE S APPEAL AG AINST THE ORDER OF LD. CIT(A) JAMNAGAR DATED 23 - 03 - 2 011 . 2. THE REVENUE HAS TAKEN FOLLOWING TWO EFFECTIVE GROUNDS: - I T A NO . 238 / RJT /20 11 A SSESSMENT YEAR 2007 - 08 I.T.A NO. 238/RJT/2011 A.Y. 2007 - 08 PAGE NO ITO VS. NITINKUMAR MULJIBHAI VORA PROP OF M/S. VORA INDUSTRIES. 2 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING ADDITION OF RS. 100000/ - MADE ON ACCOUNT OF PAYMENT MADE OUT OF THE BOOKS OF ACCOUNTS TO M/S. RAJIV TRADING CO., PARTICULARLY WHEN THE ASSESSEE HAS NOT RECONCILED THE DIFFERENCE IN CLOSING BALANCE AS PER THE ACCOUNTS OF THAT PARTY. 2. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING ADDITION OF RS. 12,65,000/ - ON ACCOUNT OF PAYMENT MADE BY M/S. SAMIK TIN CONTAINER, PARTICULARLY WHEN THE ASSESSEE HAS NOT RECONCILED THE DIFFERENCE IN CLOSING BALANCE AS PER THE ACCOUNTS OF THAT PARTY. 3. THE FIRST GROUND RELATES TO ADDITION OF RS. 1,00000/ - . ASSESSING OFFICER WHILE MAKING THIS ADDITION HAS OBSERVED AS UNDER: 6. ( ADDITION ON ACCOUNT OF PAYMENT OUT OF THE BOOKS OF ACCOUNT - RS. 1,00,000/ - COPY OF ACCOUNT FROM YOUR BOOKS OF A/C IN RESPECT OF THE ACCOUNT OF M/S, RAJIV TRADING CO AS WELL AS YOUR BOOKS OF ACCOUNT IS NOT REFLECTING ANY PAYMENT TO M/S. RAJIV TRADING CO. WHERE AS ON THE PARALLEL INQUIRY MADE WITH M/S. RAJIV TRADING CO. BY MY PREDE CESSOR HAS PROVED THAT A SUM OF RS. 1,00,000/ - BY WAY OF CHEQUE NO. 033171 HAVE MADE A PAYMENT TO M/S. RAJIV TRADING CO. WHICH IS NOT AMENABLE AND VERIFIABLE FROM YOUR REGULAR BOOKS OF ACCOUNTS AS PER COPY OF ACCOUNT FURNISHED TO THIS OFFICE, HENCE I MAKE ADDITION OF RS.1,00,000/ - AS PAYMENT OUT OF BOOKS OF ACCOUNT. SEPARATE NOTICE ISSUED U/S. 271(1)(C) OF THE ACT FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 4. LD. CIT(A) HAS DELETED THIS ADDITION BY OBSERVING AS UNDER: ` 11. I HAVE CAREFULLY CONSIDERED THE ISSUE AND GONE THROUGH THE RECORDS, IT IS SEEN THAT THE AO HAS MADE AN ADDITION OF RS. L00000 , SINCE HE HAS NOT FOUN D CHEQUE PAYMENT IN THE LEDGER OF M/S. RAJIV TRADING CO IN THE BOOKS OF AP PELLANT. ON THE OTHER HAND AR HA S SU BMITTED THAT THE SAID CHEQUE WAS GIVEN TO M/S. RAJIV TRADING CO BY M/S, YOGESH ENTERPRISE ON THEIR BEHAL F, CONF IRMATION AND LEDGER I.T.A NO. 238/RJT/2011 A.Y. 2007 - 08 PAGE NO ITO VS. NITINKUMAR MULJIBHAI VORA PROP OF M/S. VORA INDUSTRIES. 3 ACCOUNT OF AP PELLA NT FROM THE BOOKS OF M/S. YOGESH ENTERPRISE WAS FILED BEFORE ME AND ALSO BEFOR E ASSESSING OFFICER AS EVIDEN T F ROM CASE RECORDS. IT IS SEEN THAT THE SAID CHEQUE OF RS.L00000 WAS PAID TO M / R . R AJIV TRADING CO BY M/S YOGESH ENTERPRISE ON APPELLANT'S BEHALF AND APPR OPRIATELY DEBITED TO APPELLANT I N THE BOOKS OF M/S. YOGESH ENTERPRISE. CONSIDE RING THIS FACTUAL ASPEC T THERE IS NO JUSTI F ICATION IN MAKING ADDITION OF RS. 1 00000 IN THE HANDS OF THE APPELLANT , SINCE THE SOURCE OF CHEQUE IS CLEAR AND CONFIRMED BY M/S YOGESH ENTERPRISE. HENCE ADDITION OF RS. 100000 IS HEREBY DELETED. THE ABOVE FINDING OF THE LD. CIT(A) W AS NOT CONTROVERED BY THE REVENUE AT THE TIME OF HEARING BEFORE US THEREFORE WE ARE NOT INCLINED TO INTERFERE WITH THE ORDER PASSED BY LD. CIT(A) AND THE SAME IS HEREBY UPHELD. THIS GROUND OF THE REVENUE IS DISMISSED. 5. SECOND GROUND RELATES TO ADDITIO N OF RS. 12,65,000/ - . ASSESSING OFFICER WHILE MAKING THIS ADDITION HAS OBSERVED AS UNDER: - 7. (ADDITION ON ACCOUNT OF SALE PROCEEDS RECEIVED BUT NOT CREDITED IN BOOKS OF ACCOUNT - RS. 12,65,000/ - ) A COPY OF SHOW CAUSE NOTICE DT. 25 - 11 - 2009 ON THIS POINT IS REPRODUCED AGAIN AS UNDER . ON VERIFICATION OF THE CROSS LEDGER A /C SUBMITTED BY THE SAMIK TIN CONTAINERS. A - I/304,ROYAL APARTMENT, NEAR JALARAM SOCIETY JUNAGADH. FOR THE PERIOD 01 - 04 - 2006 TO 31 - 03 - 2007 IT IS NOTICED THAT HE HAS DEBITED RS. 7 , 50,000/ - O N 26 - 07 - 2006 AND RS.5,15 ,000/ - ON 04/08/2006, WHILE IN YOUR BONKS OF ACC OUNTS THESE ENTRIES ARE MISSING. WHERE AS ON EXAMINATION OF BOOKS O F ACCOUNTS AND ON THE EXAMINATION OF COPY OF ACCOUNT SUBMITTED BY SAMIK TIN CONTAINERS FROM HIS BOOKS OF ACCOUNT REFLECTING YOUR ACCOUNT IN H IS BOOKS OF ACCOUNT THERE IS NO SU CH CREDIT ENTRY OF RS. 7, 50 ,000/ - AND OF RS. 5,15, 000/ - . HENCE YOUR BOOKS OF ARE NOT IN CONFIRM ATORY WITH THE CONTRA COPY OBTAINED FROM THE PARTY, HENCE IT IS PRO VED THAT YOU HAVE REALIZED ENTIRE PROCEEDS OUT OF BOOK S IN ANOTHER AC COUNT WHICH IS NOT I.T.A NO. 238/RJT/2011 A.Y. 2007 - 08 PAGE NO ITO VS. NITINKUMAR MULJIBHAI VORA PROP OF M/S. VORA INDUSTRIES. 4 PRODUCED BY Y O U BEFORE THE UNDERSIGNED IN SPITE OF SHOW CAUSE GIVEN TWO LIMES AS WELL AS ORDER SHEET ENTRY, HENCE THE SUM O F TWO CHEQUES AMOUNTING TO RS. 12,65,000. - IS ADDED IN TOTAL INCOME BECAUSE, YOU H AVE ALL READY CLAIMED ALL THE EXPENSES IN THE RETURN OF INCOME. SEPARATE NOTICE ISSUED U/S, 271 (1)(C) OF THE ACT FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 6. LD. CIT(A) HAS DELETED THIS ADDITION BY OBSERVING AS UNDER: 14. I HAVE CAREFULLY CONSIDERED TH E ISSUE AND GONE THROUGH THE RECORDS, I T IS SEEN THAT THE AO HAS MADE AN ADDITION OF R S, 12,65,000 BEING CHEQUE GIVEN BY M/S . SAMIK TIN CONTAINER AND NOT REFLEC TED IN APPELLANTS BOOKS IN HIS LEDGER ACCOUNT. IT WAS SUBMITTED BY AR THAT THE SAID CHEQUES WERE GIVEN TO M/S. YOGESH ENTERPRISE AND M/S, YOGESH INDUSTRIES RESPECTIVELY BY M/S. SAMIK TIN CONTAINER ON APPELLANT'S BEHALF. HENCE THE SAME ARE NOT APPEARING IN HI S LEDGER. CONFIRMATION FROM M/S. SARNIK TIN CONTAINER AN D LEDGER ACCOUNT OF M/S. YOGESH ENTERPRISE AND M/S. YOGE SH INDUSTRIES WERE SUBMITTED BEFORE ME AND ALSO TO ASSESSING OFFICER AS EVIDENT FROM CASE RECORDS. IT WAS ALSO STATED THAT SAID CHEQUES ARE SA LE S REALIZATION AGAINST WHICH SALE S WAS ALREADY CREDI TED TO PROFIT AND LOSS ACCOUNT. CONSIDERING THE FACTS OF THE CASE AND CONFIRMATION FROM M/S. SAMIK TI N C CON TAINER THAT THEY HAVE GIVEN CHEQUES TO M/S. YOGESH ENTERPRISE AND M/S. YOGESH INDUSTRIES ON AP PELLANTS BEHALF AND ALSO CONFIRMATION AND LEDGER AC CO UN T FROM M/S. YOGESH ENTERPRISE AND M/S, YOGESH INDUSTRIES THAT THEY HAV E RECEIVED SAID CHEQUES ON BEHALF OF THE APPELLANT; THERE IS NO JUSTIFICATION IN MAKING AN ADDITION OF RS. 12,65,000 IN THE HAN DS O F THE APPELLANT. ALSO THE RECEIPT OF SAID CHEQUES WAS REALIZATION OF SALES PROCEEDS, FOR WHICH SALES WAS ALREADY CREDITED TO PROFIT AND LOSS ACCOUNT, SO BY MAKING ADDITION OF SALES REALIZATION AGAIN RESULTS INTO DUPLICA TION. HENCE ADDITION OF RS. 12,6 5,00 0 IS HEREBY DELETED. THE ABOVE FINDING OF THE LD. CIT(A) WAS NOT CONTROVERED BY THE REVENUE AT THE TIME OF HEARING BEFORE US THEREFORE WE ARE NOT INCLINED TO INTERFERE WITH THE ORDER PASSED BY LD. CIT(A) AND THE SAME IS HEREBY UPHELD. THIS GROUND OF THE REVENUE IS ALSO DISMISSED. I.T.A NO. 238/RJT/2011 A.Y. 2007 - 08 PAGE NO ITO VS. NITINKUMAR MULJIBHAI VORA PROP OF M/S. VORA INDUSTRIES. 5 7. IN THE RESULT, REVENUES APPEAL IS DISMISSED. SD/ - SD/ - (A.MOHAN ALANKAMONY ) ( D. K.TYAGI ) ACCOUNTANT MEM BER JUDICIAL MEMBER AHMEDABAD: DATED /05 /2013 A K ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONED HEREINABOVE AT CAPTION PAGE SD/ - SD/ - (D. K. SRIVASTAVA) ( T.K. SHARMA ) ACCOUNTANT MEM BER JUDICIAL MEMBER AEB EB / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT - THE I.T.O., WARD - 3(2), JAMNAGAR 2 . / RESPONDENT SHRI NITINKUMAR MULJIBHAI VORA, PROP. OF M/S. VORA INDUSTRIES, SHED NO. C/17, M.P. SHAH GIDC, SARU SECTION ROAD, JAMNAGAR 3 . / CONCERNED CIT , JAMNAGAR 4 . - / CIT (A) , JAMNAGAR 5 . , , / DR, ITAT, RAJKOT 6 . [ / GUARD FILE. //TRUE COPY// BY ORDER/ , SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, RAJKOT