Eastern Foods Pvt. Ltd, Cuttack V. ACIT, Cuttack

ITA 251/CTK/2013

• Counselvise Citation: 25122114 RSA 2013
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 16-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S C MOHANTY
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH , CUTTACK .. , .. , BEFORE SHRI P.K.BANSAL , A M & SHRI D.T.GARASIA , J M ./ ITA NO. 251 / C TK /20 1 3 ( / ASSESSMENT YEAR : 200 9 - 10 ) M/S EASTERN FOODS PVT. LTD., NEW INDUSTRIAL ESTATE, JAGATPUR, CUTTACK - 754 021 VS. ACIT,CIRCLE - 1(1), CUTTACK ./ ./ PAN/GIR NO. : A ABCE 3445 M ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : NONE /REVENUE BY : SHRI S.C.MOHANTY / DATE OF HEARING : 2 2 ND APRIL , 201 4 / DATE OF PRONOUNCEMENT : 22 ND APRIL , 201 4 / O R D E R PER BENCH : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 30 - 1 - 2013 . 2 . THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO THE ADDITION OF RS.26,34,679/ - APPEARING IN THE BALANCE SHEET AS SUNDRY CREDITORS. 3 . NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THE NOTICE WAS SENT TO ASSESSEE. 4 . SINCE THE ISSUE INVOLVED IS COVERED BY THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. SRIDEV ITA NO. 251 /201 3 2 ENTERPRISES, 192 ITR 165 , WE, THEREFORE, PROCEED TO DISPOSE OF THE APPEAL AFTER HEARING LEARNED DR. 5 . WE HEARD R IVAL SUBMISSIONS MADE BY THE LEARNED DR AND CAREFULLY CONSIDERED THE SAME ALONGWITH THE ORDER OF THE AUTHORITIES BELOW. WE NOTED FROM THE ORDER OF THE CIT(A) THAT THE ADDITION HAS BEEN MADE BY THE AO AND IN APP EAL THE CIT(A) SUSTAINED THE SAME RELATING TO THE CLOSING BALANCE IN RESPECT OF THE SUNDRY CREDITORS OF 63 PARTIES TOTALING TO RS. 26,34,679/ - . THE DETAILS OF WHICH ARE AVAILABLE AT PAGES 3 & 4 OF THE ORDER OF THE CIT(A) . FROM THE SAID DETAILS, IT IS APPARE NT THAT THESE CLOSING BALANCES HAVE ARISEN OUT OF THE OPENING BALANCES AS ON 1 - 4 - 2008. IT IS APPARENT FROM THESE DETAILS THAT THE ASSESSEE HAS NOT CREDITED ANY SUM IN HIS BOOKS OF ACCOUNT DURING THE YEAR. THE PROVISIONS OF SECTION 68 WHICH LAYS DOWN THE RU LE OF LAW THAT IF ANY SUM IS FOUND CREDITED IN THE BOOKS OF AN ASSESSEE MAINTAINED FOR ANY PREVIOUS YEAR, AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE THEREOF OR THE EXPLANATION OFFERED BY HIM IS NOT, IN THE OPINION OF THE ASSESSING OFFICER, SATISFACTORY, THE SUM SO CREDITED MAY BE CHARGED TO INCOME - TAX AS THE INCOME OF THE ASSESSEE OF THAT PREVIOUS YEAR. THE SUM WHICH HAS BEEN ADDED BY THE ASSESSING OFFICER WAS NOT CREDITED IN THE BOOKS OF THE ASSESSEE DURING THE ASSESSMEN T YEAR. THE SUM WHICH PERTAINS TO OUTSTANDING BALANCE OF THE CREDITORS ARE COMING OUT OF THE ASSESSMENT YEAR 2008 - 09. SINCE THE SAME HAS NOT BEEN CREDITED DURING THE YEAR IN VIEW OF THE PROVISIONS SECTION 68 THIS CANNOT BE ADDED IN THE INCOME OF THE ITA NO. 251 /201 3 3 ASSESS EE DURING THE YEAR. OUR AFORESAID VIEW IS DULY SUPPORTED BY THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF SRIDEV ENTERPRISES (SUPRA) . WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND DELETE THE ADDITION MADE BY THE ASSESSING OFFICER. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 2 ND APRIL, 201 4 . 22 ND APRIL ,2014 SD/ - SD/ - ( .. ) ( D.T.GARASIA ) ( .. ) ( P.K.BANSAL ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 22 / 0 4 /2014 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, CUTTACK 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) , CUTTACK 4. / CIT , CUTTACK 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE C OPY//