ACIT Circle-1, Faridabad V. MIS Outsoursing (P) Ltd, Faridabad

ITA 2940/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 6888 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 25-05-2009
• Assessment Year: 2002-2003
• Appeal Filed On: 17-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASHWANI TANEJA
• Keywords: TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA : VICE PRESIDENT AN D SHRI GEORGE MATHAN : JUDICIAL MEMBER ITA NO. 2940/DEL/08 ASSTT. YR: 2002-03 ACIT CIRCLE-1, VS. M/S MIS OUTSOURCING (P) LTD., CIRCLE-1, FARIDABAD SCF 46-47, SHOPPING COMPLEX SECTOR 29, FARIDABAD. PAN/GIR NO. ( APPLICANT ) ( RESPONDENT ) APPELLANT BY : SMT. ABHA RANI SINGH DR RESPONDENT BY : SHRI ASHWANI TANEJA ADV. O R D E R PER G.E. VEERABHADRAPPA, V.P: THIS APPEAL, BY THE REVENUE, ARISES OUT OF THE ORDE R DATED 10-7-2008 OF THE CIT(A)- FARIDABAD FOR A.Y. 2002-03. 2. THE GRIEVANCE OF THE DEPARTMENT IS IN THE FOLLOW ING GROUNDS: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) WAS RIGHT IN LAW AND ON FACTS IN DELETIN G THE ADDITION OF RS. 83,02,047/- MADE ON ACCOUNT OF SHOR T DECLARATION OF RECEIPTS BY TAKING THE BILLED AMOUNT AT RS. 1,92,24,233/- INSTEAD OF RS. 1,09,22,186/- AS SHOWN BY THE ASSESSEE AS THE ASSESSEE FAILED TO DISCHARGE ITS ON US TO RECONCILE THE FIGURES OF DIFFERENCE AND CONSTANTLY SHOWING VA RIOUS FIGURES OF ADVANCE TAKEN ADJUSTED DURING THE YEAR IN VARIOU S CHARGES IN ASSESSMENT PROCEEDINGS AS WELL AS IN APPELLATE PROC EEDINGS AND FIGURES WERE NOT MATCHING IN THESE DETAILS AT ALL? 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) WAS RIGHT IN LAW AND ON FACTS IN DELETIN G THE 2 ADDITION OF RS. 12,90,000/- MADE ON ACCOUNT OF ADVA NCES FROM CUSTOMERS AS THE ASSESSEE FAILED TO RECONCILE THE F IGURES OF ADVANCES TAKEN FROM ESCORTS LTD AND NEITHER IN ASSE SSMENT PROCEEDINGS NOR IN APPELLATE PROCEEDINGS WAS ABLE T O RECONCILE THE FIGURES OF ADVANCES TAKEN FROM ESCORTS LTD. AS PER BALANCE SHEET AND AS PER TDS CERTIFICATE ISSUED BY THE ESCO RTS LTD.? 3. WE HAVE HEARD BOTH SIDES AND HAVE GONE THROUGH T HE RECORDS. IN APPELLATE PROCEEDINGS BEFORE THE CIT(A), IN RESPECT OF BOTH THE ADDITIONS THE ASSESSEE HAS FILED DETAILED RECONCILIATION AND THE CIT(A) CALLED FOR A REMAND REPORT FROM THE AO AND WAS SATISFIED THAT THE ADDIT ION WAS BASED ON MISAPPROPRIATION OF FACTS AND MISUNDERSTANDING OF A CCOUNTING AND NOT BASED UPON ANY WORTHY MATERIAL. WE HAVE GONE THROUGH THE IMPUGNED ORDER ON BOTH THE ISSUES AND IN THE LIGHT OF THE RECONCILIAT ION OF THE DIFFERENCE MADE BY THE ASSESSEE IT CANNOT BE SAID THAT THE CIT(A) WENT WRONG IN DELETING THE ADDITION. THE ASSESSEE HAS RECONCILED THE DIFFEREN CE. THE ADDITION IS SIMPLY BASED ON SUSPICION. THE SAME IS LIABLE TO BE DELETE D AND THE LEARNED CIT(A) HAS CORRECTLY DELETED THE ADDITION. WE DECLINE TO I NTERFERE. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 25-05-2009. ( GEORGE MATHAN ) ( G.E. VEERABHADRAPPA ) JUDICIAL MEMBER VICE PRESIDENT DATED: 25-05-2009. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 3