Hind Industries Ltd., New Delhi V. DCIT, Circle- 11(2), New Delhi

ITA 2755/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5104 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 20-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Section: 40A(3); 14A; 133(6)

Judgement Text

1 ITA NO. 2755/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL ME MBER AND SH. PRASHANT MAHARISHI, ACCOUN TANT MEMBER I.T.A. NO. 2755/DEL/20 18 (A.Y 2012-13) (THROUGH VIDEO CON FERENCING) HIND INDUSTRIES LTD. A-1, PHASE-1, OKHLA INDUSTRIES AREA, NEW DELHI AAACH0870N (APPELLANT) VS DCIT CIRCLE-11(2) NEW DELHI (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 04/01/2018 PASSED BY CIT (A)-42, NEW DELHI FOR ASSESSMENT YEAR 2012-13. 2. THE GROUNDS OF APPEAL ARE AS UNDER: 1. THE LD.CIT(A) HAS GROSSLY ERRED IN LAW AND ON FACTS OF THE CASE IN UPHOLDING THE DISALLOWANCE OF EXPENSES ON PURCHASE OF RAW MATERIAL AMOUNTING TO RS. 60,20,73,064/-UNDER SECTION 40(A)( 3) OF INCOME TAX ACT,1961. 2. THE LEARNED CIT (A) HAS GROSSLY ERRED IN LAW A ND FACTS OF CASE IN NOT FOLLOWING THE EARLIER DECISION OF LEARNED ITAT PASSED IN CASE OF THE APPELLANT BY NONE RESPONDENT BY MS. ANIMA BARNWAL, SR. DR DATE OF HEARING 13.09.2021 DATE OF PRONOUNCEMENT 28.09.2021 2 ITA NO. 2755/DEL/2018 ASSESSEE ABOUT DELETION OF ADDITIONS MADE U/S 40(A) (3) AMOUNTING TO RS.60,20,76,064/-. 3. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF MARKETING AND MANUFACTURED FERTILIZER AND RETAIL INTERMEDIATE PRO DUCTS, EXPORT OF PROCESSED MEAT PRODUCTS. THE ASSESSEE FILED RETURN OF INCOME ON 29/9/2011 DECLARING LOSS OF RS. 1,01,55,404/-. THE ASSESSING OFFICER M ADE DISALLOWANCE OF COMMISSION OF MANAGING DIRECTOR AMOUNTING TO RS.3,4 5,629/-, DISALLOWANCE ON ACCOUNT OF CASH PURCHASES U/S 40A(3) AMOUNTING T O RS. 60,26,73,064/- AND DISALLOWANCE U/S 14A AMOUNTING TO RS. 2,57,35,7 00/-. 4. BEING AGGRIEVED BY THE PENALTY ORDER, THE ASSESS EE FILED APPEAL BEFORE THE CIT(A). THE CIT (A) PARTLY ALLOWED THE APPEAL OF T HE ASSESSEE. 5. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE GIVING NOTICE WHICH IS RETURN BACK WITH THE REMARK THAT LEFT WITHOUT ADDRESS. THERE IS NO NEW ADDRESS AVAILABLE OR FILED BY THE A SSESSEE BEFORE US. THEREFORE, SERVICE IS COMPLETED AND WE ARE PROCEEDING ON THE B ASIS OF SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE ASSESSING OFFICER AND BE FORE THE CIT(A) AS WELL. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD LD. DR AND PERUSED ALL THE RELEVAN T MATERIALS AVAILABLE ON RECORD. AFTER GOING THROUGH THE RECORDS, IT IS FOUN D THAT THE CIT(A) HAS RELIED UPON THE DECISION OF THE EARLIER YEAR I.E. ASSESSME NT YEAR 2010-11 AND CONFIRMED THE SAID ADDITIONS. THUS, THE ASSESSEE H AS RELIED UPON THE COPY OF PURCHASE ACCOUNT ONLY IN RESPECTIVE LEDGER BILLS AN D THAT TO SUMMARY OF THESE BILLS. THE ASSESSEE HAS NOT GIVEN ANY PAN, COMPLET E ADDRESS REGARDING THE PARTIES. FURTHER, NOTICE U/S 133(6) TO 51 PARTIES WERE RETURNED BACK BY THE POSTAL AUTHORITIES WITH THE REMARKS NO SUCH PERSON IS AVAILABLE AT THE GIVEN ADDRESS. THUS, NO IDENTITY WAS PROVED BY THE ASSE SSEE IN THIS ASSESSMENT 3 ITA NO. 2755/DEL/2018 YEAR. THEREFORE, THE CIT(A) HAS RIGHTLY CONFIRMED T HE ADDITIONS MADE BY THE ASSESSING OFFICER. HENCE, THE APPEAL OF THE ASSESSE E IS DISMISSED. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF SEPTEMBER, 2021 SD/- SD/- (PRASHANT MAHARISHI) (SUCH ITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28/09/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 2755/DEL/2018