SHRI GOVIND SAHU, Vidisha V. THE ITO, Vidisha

ITA 291/IND/2015

• Counselvise Citation: 29122714 RSA 2015
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 05-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: N D PATWA S
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 291/IND/2015 A.Y. : 2009-10 SHRI GOVIND SAHU, LATERI, DISTRICT VIDISHA VS. ITO, VIDISHA APPELLANT RESPONDENT PAN NO. CKZPS7025J A PPELLANT S BY : SHRI ASHISH GOYAL AND SHRI N. D. PATWA, ADVOCATES. RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-II, BHOPAL, DATED 06.01.2015 FOR THE ASSE SSMENT YEAR 2009-10. DATE OF HEARING : 15 .12. 2015 . DATE OF PRONOUNCEMENT : 15 . 1 2 .2015 SHRI GOVIND SAHU, VIDISHA VS. ITO, VIDISHA I.T.A. NO. 291/IND/2015 A.Y. 2009-10 2 2 2. THERE WAS DELAY IN FILING THE APPEAL BY 19 DAYS. TO THIS EFFECT, THE ASSESSEE HAS SUBMITTED THE EXPLANATION STATING THAT THE ORDER WAS RECEIVED ON 6.1.2015 AND THE PRESCRI BED TIME FOR THE SUBMISSION OF APPEAL WAS 7.3.2015 AND THE A PPEAL WAS SUBMITTED ON 26.3.2015, IT WAS DELAYED BY 19 DAYS, DUE TO CHANGE OF THE COUNSEL AND THE MISCOMMUNICATION, THE ASSESSEE COULD NOT FILE THE APPEAL IN TIME. 3. I HAVE PERUSED THE ASSESSEES SUBMISSIONS AND I FIN D THAT THERE IS SUFFICIENT CAUSE FOR DELAY IN APPEAL. I, THEREFORE, CONDONE THE DELAY OF 19 DAYS. 4. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE I S ENGAGED IN THE BUSINESS OF WHOLESALE TRADING OF GRA INS CARRIED IN HIS PROPRIETORSHI9P CONCERN UNDER THE NAME AND STYLE OF M/S. GANESH ENTERPRISES. THE ASSESSEE FILED THE RET URN OF INCOME ON 30.9.2009 DECLARING INCOME OF RS. 3,66,41 0/- EARNED FROM THE TOTAL TURNOVER OF RS. 6,46,05,200/- . THE AO HAS VERIFIED THE AUDIT REPORT AND FROM THE AUDIT RE PORT, IT WAS SUBMITTED BY THE ASSESSEE THAT THE AMOUNT OF RS. 21 ,16,336/- HAS BEEN SHOWN UNDER THE HEAD CURRENT LIABILITIES AND PROVISIONS, OUT OF WHICH RS. 19,45,836/- WAS SHOWN UNDER SHRI GOVIND SAHU, VIDISHA VS. ITO, VIDISHA I.T.A. NO. 291/IND/2015 A.Y. 2009-10 3 3 THE HEAD SUNDRY CREDITORS. THE ASSESSEE SUBMITTED THAT SUNDRY CREDITORS ARE FARMERS FROM WHOM THE GRAINS W ERE PURCHASED FROM MANDI ON CREDIT. THE ASSESSEE HAD MA DE PURCHASES FROM FARMERS IN CASH AND AO VERIFIED THE PURCHASES AND PAYMENT CHARGES FURNISHED AND OUT OF THESE EIGH T FARMERS, TOTAL AMOUNT OF RS. 8,80,944/- WAS THE PUR CHASES MADE ON 14.5.2009, WHICH IS APPROXIMATELY 1-1/2 MON THS AFTER THE DATE OF PURCHASE. THE ASSESSEE COULD NOT OFFER ANY SATISFACTORY EXPLANATION. THEREFORE, THE AO DISALLO WED THIS AMOUNT OF RS. 8,80,944/- U/S 41(1) OF THE INCOME-TA X ACT, 1961. 5. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS CONFIRMED THE ADDITION. 6. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT THE AO HAS MADE THE ADDITION U/S 41(1) OF THE ACT, BUT THE LD. CIT(A) HAS HELD THAT THIS ADDITION IS SUSTAINED U/S 69 OF THE ACT. WE FIND THAT THE LD. AUTHORIZED REPRESENTATIVE DURING THE COURSE OF HEARING SUBMITTED THAT THE ASSESSEE COULD NOT PRODUCE THESE FARMERS. MOREOVER, THE ASSESSEE HAS A LREADY SHRI GOVIND SAHU, VIDISHA VS. ITO, VIDISHA I.T.A. NO. 291/IND/2015 A.Y. 2009-10 4 4 MADE PAYMENTS TO THESE FARMERS. THEREFORE, NO ADDIT ION CAN BE MADE. THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY, I RESTORE THIS ISSUE TO THE FILE OF AO AND THE AO IS DIRECTED TO VERIFY THE CLAIM OF THE ASSESSEE WHETHER THE ASSESS EE HAS ALREADY PAID THE AMOUNT TO FARMERS. THE AO IS DIREC TED TO VERIFY THE SAME AND IF THE AO FINDS THAT THE ASSESS EE HAS ALREADY PAID, THEN THE AO IS DIRECTED TO DECIDE THE MATTER AS PER LAW. 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 15 TH DECEMBER, 2015. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 15 TH DECEMBER, 2015. CPU* 15