ACIT, Meerut V. M/s Rachit Prints (P) Ltd., Meerut

ITA 2919/DEL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52479 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 12-08-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 11-06-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA
• Assessee Lawyers: RK GARG
• Keywords: Unexplained cash credit; Opportunity of being heard

Judgement Text

ITA NO. 2919/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 2919/DEL/2010 A.Y. : 2006-07 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-2, MEERUT VS. M/S RACHIT PRINTS (P) LTD., 477, SWAMIPARA, BUDHANA GATE, MEERUT (PAN/GIR NO. : AABFV8427B) (APPELLANT ) (RESPONDENT ) ASSEESSEE BY : SH. RK GARG, ADV. DEPARTMENT BY : S MT. ANUSHA KHURANA, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 16.3.2 010 PERTAINING TO ASSESSMENT YEAR 2006-07. 2. THE GROUNDS RAISED READ AS UNDER:- (I) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN L AW IN DELETING THE ADDITION OF ` 32,98,632/- MADE BY THE ASSESSING OFFICER U/S. 68 OF THE IT ACT, 1961 FOR UNEXPLAINED UNSECURED LOAN CREDITED IN THE BOOKS OF ACCOUNTS I NSPITE OF THE FACT THAT THE GENUINENESS OF TRANSACTIONS AS WE LL AS CREDITWORTHINESS OF ALLEGED LOAN CREDITORS REMAINED TOTALLY UNPROVED? ITA NO. 2919/DEL/2010 2 (II) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN L AW IN DELETING ADDITION OF ` 32,98,632/- MADE BY THE ASSES SING OFFICER WHILE ASSESSING OFFICERS STAND WAS IN C ONFORMITY WITH HONBLE APEX COURTS DECISION IN THE CASE OF C .I.T. VS. P. MOHANAKALA (2007) 291 ITR 278 (SC) DULY QUOTED IN TH E ASSESSMENT ORDER ITSELF AND THE ASSESSEE HAD TOTALL Y FAILED TO DISCHARGE THE BURDEN CAST ON IT. 3. IN THIS CASE ASSESSING OFFICER NOTED THAT ASSESS EE HAS RECEIVED AN AMOUNT OF ` 16,42,379.790 FROM SH. ANUPAM KANSAL AND AMOUNT OF ` 16,56,252.52 FROM SMT. ANITA KANSAL IN THE FORM OF U NSECURED LOANS. ASSESSEE WAS ASKED TO ESTABLISH THE IDENTITY, CREDI TWORTHINESS OF THE TRANSACTIONS. IN THE COURSE OF VERIFICATION, ASSES SING OFFICER NOTED THAT THESE PERSONS HAVE DEPOSITED CASH IN THEIR ACCOUNTS AND THEREAFTER GIVEN CHEQUES OF THE UNSECURED LOANS. ASSESSING O FFICER IN THIS BACKGROUND OPINED THAT CREDITWORTHINESS OF THE UNSE CURED LOANS CREDITORS WERE NOT PRODUCED AND HE TREATED THE SAME AS UNEXPLAINED CASH CREDIT U/S 68 OF THE IT ACT. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDITION HOLDING THAT ASSESSE E DID NOT NEED TO PROVE THE SOURCE OF SOURCE. 5. AGAINST THE ABOVE ORDER, THE REVENUE IS IN APPE AL BEFORE US. 6. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. LD. COUNSEL OF THE ASSESSEE THROUGH PAPER BOOK TRIED TO SUBMIT THAT THESE PERSONS HAD WITHDRAWALS FROM THE OTHER BANK ACCOUNT S FOR GIVING ADVANCES. WE FIND THAT THIS ASPECT WAS NOT CAN VASSED BEFORE THE AUTHORITIES BELOW. HENCE, IN OUR CONSIDERED OPINIO N, INTEREST OF JUSTICE ITA NO. 2919/DEL/2010 3 WILL BE SERVED, IF THE MATTER IS REMITTED TO THE FI LES OF THE ASSESSING OFFICER TO CONSIDER THE ISSUE AFRESH. LD. COUNSE L OF THE ASSESSEE AGREED TO SUBMIT THE RELEVANT DOCUMENTS BEFORE THE ASSESSING OFFICER. ACCORDINGLY, WE REMIT THE ISSUE TO THE FILES OF THE ASSESSING OFFICER TO CONSIDER THE SAME AFRESH. NEEDLESS TO ADD THAT THE ASSESSEE SHOULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12/8/2011 UPO N CONCLUSION OF HEARING. SD/ SD/ SD/ SD/- -- - SD/ SD/ SD/ SD/- -- - [ [[ [C.L. C.L. C.L. C.L. SETHI SETHI SETHI SETHI] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 12/8/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES