ITO, New Delhi V. Shri Chaman Lal Gupta, New Delhi

ITA 2419/DEL/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7297 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 21-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL
• Keywords: Additional evidence
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE : JUDICIAL MEMBER ITA NO. 2419/DEL/2012 ASSTT. YR: 2008-09 INCOME TAX OFFICER, VS. SHRI CHAMAN LAL GUPTA, WARD 25(4), NEW DELHI. PROP. M/S MADAN PLASTICS C-1/24, MIYANWALI NAGAR, PEERA GARHI, NEW DELHI-110087. PAN: AEJPG 3195 B ( APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI AMRIT LAL SR. DR RESPONDENT BY : SHRI RAJEEV SAXENA ADV. DATE OF HEARING : 09/12/2015. DATE OF ORDER : 02/02/2016. O R D E R PER S.V. MEHROTRA, A.M: THIS IS REVENUES APPEAL AGAINST THE ORDER DATED 9. 3.2012 PASSED BY THE LD. CIT(A)-XXIV, NEW DELHI IN APPEAL NO. 274/ 10-11, RELATING TO A.Y. 2008-09. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA D FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 52,800/- AFTER CLAIMI NG DEDUCTION OF RS. 1,21,090/- UNDER CHAPTER VI-A. THE ASSESSEES CASE WAS SELECTED FOR 2 SCRUTINY ON THE BASIS OF CASS. THE ASSESSEE WAS EN GAGED IN THE BUSINESS OF MANUFACTURING OF EVA/PVC FOOTWEARS AND COMPOUNDS UN DER THE PROPRIETORSHIP M/S MADAN PLASTICS. THE AO NOTED FRO M TAX AUDIT REPORT THAT ASSESSEE DID NOT PRODUCE THE STOCK REGISTER AT THE TIME OF AUDIT. HE, THEREFORE, CONCLUDED THAT THE BOOKS WERE NOT RELIAB LE AS THE CONSUMPTION OF ELECTRICITY FOR BOTH THE YEARS VIZ. AY 2007-08 AND 2008-09 WERE NOT CORRECT. THE DETAILS WERE AS UNDER: TURNOVER CONSUMPTION ASSTT. YEAR 2007-08 RS. 18,76,287 RS. 9,46,806 50.46% ASSTT. YEAR 2008-09 RS. 1,07,61,283 RS. 59,63,397 55.54% 3. HE FURTHER OBSERVED THAT THE PURCHASES WERE NOT VERIFIABLE AND THE ELECTRICITY BILLS DID NOT TALLY WITH THE ACTUAL CON SUMPTION. HE, THEREFORE, CALLED FOR INFORMATION U/S 133(6) FROM NORTH DELHI POWER LTD. AS PER WHICH THE ELECTRICITY CHARGES FOR THE PERIOD FROM 28.4.20 07 TO 10.4.2008 WERE RS. 24,83,885/-. THE AO MADE ADDITION OF RS. 28,97,389/ -, INTER ALIA, OBSERVING AS UNDER: 09.04.2007 CHEQUE NO. 283936 RS. 201,780/- 22.05.2007 CHEQUE NO. 283947 RS. 6,49,160/- 26.05.2007 CHEQUE NO. 283950 RS. 1,37,570/- 26.05.2007 CHEQUE NO. 283949 RS. 2,83,990/- THESE PAYMENTS DO NOT TALLY EXCEPT RS. 2,83,990/- R ECEIVED ON 24.05.2007. THESE SHOWS THAT THE PAYMENTS ARE MADE NOT ON THE BILLS RAISED BY THE NDPL ON 22.05.2007 AMOUNTING TO RS. 6,49,160/-.. 3 THIS PROVED THAT PAYMENT MADE ARE NOT OPEN FOR VERI FICATION. THE TOTAL CLAIM ON ELECTRICITY X AT RS. 52,03,194/- . BUT THE PAYMENTS RECEIVED BY NDPL IS ONLY RS. 23,05,905/-. THUS THE BALANCE AMOUNT CLAIMED IS NOT ALLOWED AS DEDUCTION. THUS THE DISALLOWANCE WILL BE RS. 28,97,289/-. 4. LD. CIT(A) DELETED THE ADDITION AFTER OBTAINING A REMAND REPORT FROM THE AO ON ADDITIONAL EVIDENCE FURNISHED BEFORE HIM. 5. LD. DR RELIED ON THE ORDER OF AO. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E PERUSED THE RECORD OF THE CASE. THE AO HAD CALLED FOR THE DETAILS FROM NORTH DELHI POWER LTD. U/S 133(6) IN RESPECT OF THE ELECTRICITY METERS IN THE NAME OF MR. CHAMAN LAL GUPTA ONLY. HOWEVER, IN FACT THERE WERE THREE ELECT RICITY METERS INSTALLED IN THE TWO FACTORY PREMISES AND THE DETAILS OF THE OTH ER TWO WERE NOT CALLED FOR BY THE AO, SINCE THEY WERE NOT IN THE NAME OF CHAMA N LAL GUPTA, EVEN THOUGH THE METERS WERE INSTALLED IN THE NAME TWO FA CTORY PREMISES. THE TWO FACTORY PREMISES WERE AT H-1278, DSIDC, NARELA, DEL HI, WHICH WAS USED FOR MANUFACTURE OF PVC COMPOUND AND THE OTHER FACTORY P REMISES AT F-1838, DSIDC, NARELA, DELHI WAS USED FOR MANUFACTURE OF PV C FOOTWEARS. DETAILS OF POWER CONSUMPTION OF THE THREE PREMISES WERE AS UNDER: 4 NAME OF THE PERSON IN WHOSE NAME THE CONNECTION IS K. NO. UNITS AMOUNT PAID REMARKS WHETHER THROUGH BANK OR CASH ENCLOSURES CHAMAN LAL GUPTA 435051957844 502991 24,83,885 BANK COPY OF ELECTRICITY A/C/ ELECTRIC BILLS (PG. NO. 17-27) K.G. PLASTICS 43200144691P 387245 15,30,929 BANK COPY OF ELECTRICITY A/C/ ELECTRIC BILLS (PG. NO. 29-40) SUBHASH GUPTA 43200143210Q 232967 11,63,080 BANK COPY OF ELECTRICITY A/C/ ELECTRIC BILLS (PG. NO. 28) 7. IN THE FORM OF ADDITIONAL EVIDENCE BEFORE LD. CI T(A), THE ASSESSEE HAD SUBMITTED ALL THE BILLS AND AFTER EXAMINING ALL THE SE DETAILS LD. CIT(A) HAS OBSERVED AS UNDER: A PERUSAL OF THESE BILLS REVEALS THAT THEY PERTAIN TO THE SAME FACTORY PREMISES SINCE TELEPHONE NUMBERS ON THE BI LLS ARE THE SAME, WHETHER THE BILL IS IN THE NAME OF SH. CHAMAN LAL GUPTA OR M/S. K G PLASTICS OR SH. SUBHASH GUPTA. EVEN THE ADDRESS IS THE SAME I.E. F-1838, DSIDC, NARELA, DELHI OR H-127 8, DSIDC, NARELA, DELHI. IN VIEW OF THE ABOVE FINDING OF FACT, IT IS HELD THAT ALL THE THREE ELECTRICITY METERS WERE INS TALLED IN THE FACTORY PREMISES OF M/S. MADAN PLASTICS AND THAT TH E APPELLANT IS ENTITLED TO THE DEDUCTION FOR CLAIM OF ELECTRICI TY CONSUMED AT RS.52,03, 194/-. THE AO HAS WRONGLY TAKEN RS.59,63, 397/- AS THE AMOUNT OF EXPENDITURE ON ELECTRICITY CONSUMPTIO N, - WHEREAS THIS AMOUNT PERTAINS TO PURCHASES DEBITED T O THE TRADING ACCOUNT. THEREFORE, THE ADDITION OF RS.28,9 7,289/- IS HEREBY DELETED. 5 8. THESE FINDINGS OF LD. CIT(A) HAVE NOT BEEN CONTR OVERTED BY THE DEPARTMENT BY BRINGING ANY EVIDENCE ON RECORD TO ES TABLISH THAT THE ASSESSEE WAS NOT CONSUMING THE ELECTRICITY, WHICH WERE SUPPL IED TO IT THROUGH THE ELECTRICITY METERS IN THE NAMES OF K.G. PLASTICS AN D SUBHASH GUPTA APART FROM THE ELECTRICITY METER IN THE NAME OF CHAMAN LA L GUPTA. IN THAT VIEW OF THE MATTER WE SEE NO REASON TO INTERFERE IN THE ORD ER OF LD. CIT(A) AND THE SAME IS UPHELD. 9. IN THE RESULT, DEPARTMENTS APPEAL IS DISMISSED. ORDER PRONOUNCEMENT IN OPEN COURT ON 02/02/2016. SD/- SD/- (SUCHITRA KAMBLE ) (S.V. MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 02/02/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.