M/s. Vasundhara Oil Industries, Gondal, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-1(2), RAJKOT-GUJARAT

ITA 299/RJT/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5914 (ITAT-RAJKOT)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 18-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR J B JHAVERI DR
• Assessee Lawyers: RK DOSHI

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT BEFORE SHRI T. K. SHARMA, JM AND SHRI B. R. JAIN, A M ITA NO. 299/RJT/2013 / ASSESSMENT YEAR : 2006-07 M/S. VASUNDHARA OIL INDUSTRIES, N.H. 8B, BHOJ PARA, OPP. GALAXY PETROL PUMP, GONDAL PAN : AABFB 5813 H ( / APPELLANT) INCOME-TAX OFFICER, WARD-1 (2) RAJKOT / RESPONDENT ! ' #$ / ASSESSEE BY SHRI R.K. DOSHI, CA % ! ' #$ / REVENUE BY DR. J. B. JHAVERI, DR # & ' ! ( / DATE OF HEARING 01.01.2014 ) ! ( / DATE OF PRONOUNCEMENT 03.01.2014 / ORDER .. , / T. K. SHARMA, J. M.: THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 05.02.2013 OF LD. CIT(A) , GANDHINAGAR, AHMEDABAD FOR THE ASSESSMENT YEAR 2006-07. 2. BRIEFLY, THE FACTS ARE THAT THE ASSESSEE RETURNE D NIL INCOME FROM THE BUSINESS OF RUNNING OIL MILL. IT HAS MAINTAINED THE ACCOUNTS ON MERCANTILE BASIS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS CLAIMED PAYMENTS MADE TO ITS SUPPLIER M/S. S.R. PATEL TRADI NG CO., THARA BUT THE SAME HAVING NOT BEEN FOUND TRANSACTED THROUGH ASSESSEES BANK A CCOUNT AND AS THE ASSESSEE WAS NOT ABLE TO PRODUCE SALE INVOICES FOR ITS CLAIM TH AT THE PAYMENTS HAVE BEEN MADE BY TWO OF ITS CUSTOMERS TO THE AFORESAID SUPPLIER ON A SSESSEES BEHALF, THE ASSESSING OFFICER PROCEEDED TO MAKE ADDITION OF RS.11,54,648/ - AS UNDISCLOSED INCOME. THE LD. CIT(A) CONFIRMED THE SAID ADDITION. 3. WE HAVE HEARD THE PARTIES WITH REFERENCE TO MATE RIAL ON RECORD. THE ASSESSEES PAPER-BOOK LAID ON RECORD REVEALS THAT THE ASSESSEE HAD PLACED ON RECORD OF LD. CIT(A) THE COPIES OF ASSESSEES ACCOUNTS IN THE BOOKS OF T WO OF ITS CUSTOMERS NAMELY M/S. NARAYAN OIL MILL, AMRELI AND M/S. INDIAN EXTRACTION S LTD., JAMNAGAR SUPPORTED BY SALE 299-RJT-2013 - VASUNDHARA OILS INDUSTRIES 2 INVOICES AND BANK CERTIFICATE WHICH ARE LAID AT PAP ER-BOOK PP 25-31 AND PP 34-36 REVEALING PAYMENTS MADE BY THESE PARTIES TO M/S. S. R. PATEL TRADING CO., THARA ON BEHALF OF ASSESSEES SUPPLIER. THE APPELLANT HAS AL SO SHOWN THAT IT HAS PRODUCED BOOKS OF ACCOUNT ALONGWITH SALE INVOICES WITH RESPECT TO THE EXPLANATION SOUGHT BY THE ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS . IT THUS IS EVIDENT THAT THE PAYMENTS MADE FOR RS.7,01,415.00 BY M/S. NARAYAN OI L MILL, AMRELI AND FOUR PAYMENTS OF RS.1,40,000/-, RS.64,085/-, RS.1,30,000/- AND RS .1,20,000/- AGGREGATING TO RS.4,54,085/- BY M/S. INDIAN EXTRACTIONS LTD., JAMN AGAR TO M/S. S.R. PATEL TRADING CO., THARA THE SUPPLIER OF THE ASSESSEE, WERE MADE ON BEHALF OF THE APPELLANT. THAT BEING SO, THE CLAIM OF THE ASSESSEE WAS GENUINE AND SUPPO RTED BY RELIABLE MATERIAL ON RECORD. WE, THEREFORE, DO NOT FIND ANY JUSTIFICATION IN DOU BTING THE CORRECTNESS OF THE CLAIM. THE ADDITION THUS MADE IS ON ERRONEOUS ASSUMPTION AND I S DIRECTED TO BE DELETED. 4. IN THE RESULT, THE APPEAL BY THE ASSESSEE STANDS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- SD/- (B. R. JAIN) (T. K. SHARM A) $( #*% / ACCOUNTANT MEMBER #*% /JUDICIAL MEMBER *$+ ,*-/ ORDER DATE 03.01.2014 /RAJKOT *BT / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT- M/S. VASUNDHARA OIL INDUSTRIES, N.H. 8 B, BHOJ PARA, OPP. GALAXY PETROL PUMP, GONDAL 2. /RESPONDENT- INCOME-TAX OFFICER, WARD-1 (2), RAJKOT 3. #-2- & 3 / CONCERNED CIT 4. & 3 - / CIT(A), GANDHINAGAR, AHMEDABAD 5 . 678 , , / DR, ITAT, RAJKOT 6 . 89 :; / GUARD FILE. *$+ #$ / BY ORDER , TRUE COPY PRIVATE SECRETARY, , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.