The ACIT, Sagar V. M/s. S.S.Eenterprises, Sagar

ITA 261/JAB/2008

• Counselvise Citation: 26122714 RSA 2008
• Duration Of Justice: 2 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 11-04-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 01-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KESHAVE SAXENA
• Assessee Lawyers: H P VERMA; GIRISH AGARWAL
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : AAVFS0019C I.T.A.NO. 261/IND/2008 A.Y. : 2003-04 ACIT, M/S.S.S.ENTERPRISES, CIRCLE SAGAR VS 10, CIVIL LINES, SAGAR APPELLANT RESPONDENT APPELLANT BY : SHRI KESHAVE SAXENA, CIT DR RESPONDENT BY : S/SHRI H.P.VERMA AND SHRI GIRISH AGARWAL, ADVOCATES O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 18 TH JUNE, 2008, IN THE MATTER OF ORDER PASSED U/S 153A R.W.S. 143(3) OF THE INCOME-TAX ACT, 1961. FOR THE ASSESSMENT YEAR 2003-04. 2. IN THIS APPEAL, THE REVENUE IS AGGRIEVED FOR DELETI ON OF ADDITION OF RS. 19,48,490/- BY THE LD. CIT(A). -: 2: - 2 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. 4. THE AO HAS MADE AN ADDITION OF RS. 19,48,496/- BEIN G THE DIFFERENCE IN THE OUTSTANDING CREDIT BALANCE PA YABLE TO RAMESH KUMAR RAI & COMPANY. IN THIS REGARD, THE REV ENUE IS AGGRIEVED FOR DELETION OF ADDITION OF RS. 19,48,490 /- BY THE LD. CIT(A). IN THIS REGARD, THE AO OBSERVED THAT AS PER THE BALANCE SHEET FILED WITH THE RETURN, THE CLOSING BALANCE WA S OF RS. 64,98,847/-. HOWEVER, DURING THE COURSE OF THE SEAR CH ACTION AT THE RESIDENCE OF SHRI R.P.KESHARWANI, A COPY OF THE BALANCE SHEET OF THE ASSESSEE FOR THE EARLIER YEAR WAS FOUN D AND AS PER WHICH THE OUTSTANDING CREDIT BALANCE PAYABLE TO M/S . RAMESH KUMAR RAI & CO. AS ON 31.3.2002 WAS RS. 25,81,861/- . IN THIS BALANCE SHEET, THE CHARTERED ACCOUNTANT HAD ALSO WR ITTEN THE FIGURE OF RS. 45,50,351/- BY HAND. THE AO TOOK THIS HAND- WRITTEN FIGURE TO BE THE OUTSTANDING BALANCE OF TH E NEXT YEAR I.E. 31.3.2003 AS AGAINST THE FACT THAT IN THE BALA NCE SHEET FILED BY THE ASSESSEE THE OUTSTANDING BALANCE WAS R S. 64,98,847/-. THE DIFFERENCE OF RS. 19,48,491/- THUS WAS BROUGHT TO TAX. -: 3: - 3 5. BY THE IMPUGNED ORDER, THE LD. CIT(A) DELETED THE ADDITION AFTER HAVING THE FOLLOWING OBSERVATIONS :- THE LD. AUTHORIZED REPRESENTATIVE HAS STATED THAT THE AO WITHOUT RAISING ANY QUERY HAS MADE THIS ADDITION. HOWEVER, HE HAS SOUGHT TO EXPLAIN THE DIFFERENCE BY STATING THAT IT WAS NOT A FAIR COPY O F THE BALANCE-SHEET BUT ONLY A ROUGH ONE AND ON IT THE C. A. HAD WRITTEN THE FIGURE OF RS. 45,50,351/- . HOWEVER, WHILE PREPARING THIS ROUGH COPY, HE MISSED TO TAKE NOTE OF CHEQUES OF RS. 16 LACS ISSUE D BY M/S. RAMESH KUMAR RAI & CO. IN APRIL 2002, AND FURTHER THE BANK GUARANTEE COMMISSION OF RS. 3,48,490/- PAID BY THAT CONCERN ON BEHALF OF THE ASSESSEE. WHILE FINALIZING THIS BALANCE SHEET, THES E TWO AMOUNTS WERE TAKEN CARE OF AND BECAUSE OF WHICH THE AMOUNT OF OUTSTANDING CREDIT BALANCE CAME TO RS. 64,98,847/- AND THIS BALANCE IS VERIFIABLE. THERE WAS THUS NO BASIS TO MAKE THIS ADDITION. -: 4: - 4 6. WE HAVE CONSIDERED THE RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AN D MATERIAL PLACED BEFORE US. WE FOUND THAT THE ADDITION WAS MA DE BY THE ASSESSING OFFICER IN RESPECT OF CREDIT BALANCE PAYA BLE TO M/S. RAMESH KUMAR RAI & COMPANY AS ON 31.3.2002. ACTUAL CLOSING BALANCE AS PER BALANCE SHEET WAS RS. 64,98, 847/-, BUT, HOWEVER, DUE TO FIGURE OF RS. 45,50,351/- WRIT TEN BY THE C. A. ON THE BALANCE SHEET, THE AO HAS ADDED THE DI FFERENCE AS ASSESSEES INCOME. THE LD. CIT(A) DELETED THE SAME BY RECORDING A FINDING THAT CHEQUES OF RS. 16 LAKHS WA S ISSUED BY M/S. RAMESH KUMAR RAI & COMPANY IN APRIL, 2002, AND BANK GUARANTEE COMMISSION OF RS. 3,48,490/- PAID BY THAT CONCERN ON BEHALF OF THE ASSESSEE, WHICH HAS NOT BEEN TAKEN INTO CONSIDERATION. ACCORDINGLY, AS PER THE RECONCILIATI ON STATEMENT FILED BEFORE THE CIT(A), HE DELETED THE ADDITION AF TER RECORDING THE FINDINGS AT PARA 5.1. WE FOUND THAT AS PER THE STATEMENT OF ACCOUNT PLACED ON RECORD, CHEQUES NO. 0273468 OF BA NK OF INDIA DATED 3.4.2002 AND CHEQUES NO. 0273469 OF BAN K OF INDIA DATED 10.6.2002 AND ALSO BANK GUARANTEE COMMI SSION OF RS. 3,48,396/- WAS NOT TAKEN INTO CONSIDERATION. TH EREFORE, -: 5: - 5 THE DIFFERENCE AROSE. AFTER RECONCILIATION OF THESE FIGURES, WE FOUND THAT OUTSTANDING CREDIT BALANCE COMES TO RS. 64,98,847/-. ACCORDINGLY, WE DO NOT FIND ANY INFIRM ITY IN THE ORDER OF CIT(A) FOR DELETING THE SAID ADDITION. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 26 TH APRIL, 2011. SD/- SD/- (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 26 TH APRIL, 2011. CPU* 2125