Shah Foils Pvt. Ltd., Ahmedabad V. The DCIT, Circle-8, Ahmedabad

ITA 3001/AHD/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6063 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 20-04-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 16-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRA SOON KABRA HEARING CONCLUD
• Assessee Lawyers: K C THAKER
• Keywords: Reopening of assessment; Unexplained cash credit; Reassessment proceedings
• Section: 40A(3); 143(3); 6

Judgement Text

ITA NO. 3001 / AHD/201 3 ASSESSMENT Y EAR: 20 0 5 - 06 PAGE 1 OF 7 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO. 3001 /AHD/201 3 ASSESSMENT Y EAR : 20 0 5 - 06 SHAH FOILS PVT. LTD. ..... .......... . APPELLANT 26, BLOCK - B, GALAXY SIGNATURE, SCIENCE CITY ROAD,SOLA, AHMEDABAD 360 060. [PAN: A AICS 04 90 F ] VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE - 8, AHMEDABAD. .. ......... RESPONDENT APPEARANCES BY K.C. THAKER FOR THE A PPELLANT PRASOON KABRA FOR THE R E SPONDENT HEA RING CONCLUDED ON: 20.04. 2017 ORDER PRONOUNCED ON : 28 . 0 4 .2017 O R D E R PER PRAMOD KUMAR , AM: 1. BY WAY OF THIS APPEAL, THE A SSESS EE APPELLANT HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 29 TH NOVEMBER 2013, PASSED BY THE LEARNED CIT( A) , IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 20 0 5 - 06. 2. IN GROUND OF APPEAL NOS.1 & 2, WHICH RELATE TO ASSESSEE S GRIEVANCE AGAINST REOPENING OF ASSESSMENT, FOLLOWING GRIEVANCES ARE R AISED : - 1. THE LEARNED CIT ( A ) HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE AO WAS JUSTIFIED IN REOPENING THE ASSESSMENT U/S.147 OF THE ACT AND IN DISMISSI NG THE GROUND NO.1 CONTESTING T H E ASSUMPTION OF JURISDICTION U/S.147 OF THE ACT BY THE AO, AND THE VALIDITY OF THE ASSESSMENT MADE BY THE AO. ITA NO. 3001 / AHD/201 3 ASSESSMENT Y EAR: 20 0 5 - 06 PAGE 2 OF 7 2. THE LEARNED CIT(A) HAS ALSO ERRED IN IGNORING AND NOT DEALING WITH THE DETAILED FIRST WRITTEN SUBMISSION ON T HE ISSUE AND ALSO THE JUDGEMENTS [103 ITR 437 (SC) AND 217 ITR 1 (GUJ)] CITED BEFORE HIM. 3. T O ADJUDICATE ON THE GRIEVANCE RELATING TO VALIDITY OF REASSESSMENT PROCEEDINGS, ONLY A FEW MATERIAL FACTS NEED TO BE TAKEN NOTE OF. IT IS A CASE OF ASSESSMENT HAVING BEEN REOPENED ON THE BASIS OF FOLLOWING REASONS RECORDED BY THE ASSESSING O FFICER : - 3. THE ASSESSEE COMPANY, ENGAGED IN THE BUSINESS OF MANUFACTURING OF COLD ROLLED STAINLESS STEEL COILS, FILED ITS RETURN OF INCOME FOR THE A.Y. 2005 - 06 ON 30/10/2005 DECLARING TOTAL INCOME AT RS.2851250 THE CASE WAS SELECTED FOR SCRUTINY AND ACCORDINGLY, S CRUTINY ASSESSMENT U/S 143(3) WAS COMPLETED ON 20.11.2007 DETERMINING TOTAL INCOME AT RS.2851250. SINCE THE TAX AS PER MAT WAS HIGHER THAN THAT OF THE NORMAL PROVISIONS OF THE IT. ACT, THE INCOME WAS FINALLY DETERMINED AT RS.10116390 AS PER THE MAT. IT IS PERTINENT TO MENTION HERE THAT AN ACTION WAS CARRIED OUT BY DGCEI. VAPI. AT THE PREMISE OF M/S. H. K. IMPEX PVT. LTD., UMBERGAON , GUJARAT AND CONSEQUENTLY AT THE FACTORY PREMISE OF M/S. SHAH FOILS PVT. LTD. AT SANTEJ, KALOL AND AMBICA TRANSPORT SERVICES, AHRNEDABAD. DURING THE COURSE OF STATEMENT, DIRECTOR OF ASSESSEE COMPANY SHRI KARTIK SHAH SUBMITTED THAT THE GOODS WERE BEING TRANSPORTED FROM THEIR FACTORY PREMISE AT SANTEJ TO VASAI/BHAYANDER, MAHARASHTRA INSTEAD OF THE DESTINATION MENTIONED ON THE INVO ICE AND THE LR BEING THE FACTORY PREMISES OF M/S. H.K. IMPEX PVT. LTD. UMBERGAON, GUJARAT. FROM THE ABOVE DISCUSSION, IT IS CLEAR THAT THE ASSESSEE COMPANY BY RESORTING TO UNACCOUNTED SALES TO VARIOUS PARTIES AT VASAI/BHYANADER WAS INVOLVED IN THE TAX EVA SION DURING THE ASSESSMENT YEAR 2005 - 06. AS PER THE COPIES OF LEDGER ACCOUNTS, THE PURC H ASES AMOUNTING TO RS.6972741 FOR A.Y. 2005 - 06 HAVE BEEN SHOWN BY M/S. H. K. IMPEX PVT. LTD. FROM THE ASSESSEE WHICH IS THE UNACCOUNTED SALES OF THE ASSESSEE COMPANY. SINCE, THE UNACCOUNTED SALES AS NARRATED ABOVE HAS NOT BEEN SHOWN BY THE ASSESSEE IN THE TRADING RESULT FOR A.Y, 2005 - 06 , THE ASSESSEE'S ACTION HAS RESULTED INTO UNDER ASSESSMENT OF INCOME TO THE EXTENT OF RS.6972741/ - FOR THE ASST. YEAR 2005 - 06 . 4. T HE ASSESSEE DID RAISE GRIEVANCE AGAINST THE REOPENING BUT WITHOUT ANY SUCCESS. THE ASSESSING O FFICER PROCEEDED TO REJECT THE OBJECTION AND TREATED THE S ALES TO H . K . IMPEX PVT . LTD . AS UNACCOUNTED SALES BY OBSER V ING AS FOLLOWS : - 6. THE SUBMISSIONS OF THE A SSESSEE ARE DULY CONSIDERED. HOWEVER, THE SAME ARE NOT FOUND ACCEPTABLE. AS FAR AS THE OBJECTIONS RAISED AG A INST ITA NO. 3001 / AHD/201 3 ASSESSMENT Y EAR: 20 0 5 - 06 PAGE 3 OF 7 REOPENING OF ASSESSMENT ARE CONCERNED, THE SAME H A S ALRE A DY BEEN DISPOSED OFF VIDE LETTER DATED 05.02.2013. DURING THE COURSE OF PROCEEDINGS BEFORE DGCEI, SHRI KARTIK SHAH, DIRECTOR OF THE ASSESSEE COMPANY STATED THAT THE GOODS WERE DISPATCHED THROUGH A M TBICA TRANSPORT SERVICES FROM SANTEJ TO VASAI/BHAYANDAR, MAHARASHTRA AND NOT TO FACTORY PREMISE OF M/S. H. K. IMPEX PVT. LTD. AT UMBERGAON, GU JARAT. THIS STATEMENT HAS BEEN CORROBORATED BY THE STATEMENT OF SHRI NILESHBHAI H. SANGHVI, PARTNER OF M/S. AMBICA TRANSPORT SERVICES. SHRI RAMESH M. SHAH, ANOTHER DIRECTOR OF M/S. SHAH FOILS PVT. LTD., ALSO SUPPORTED THE FACTS STATED BY SHRI KARTIK SHAH I N HIS STATEMENT. 7. FROM THE FACTS BROUGHT OUT IN THE FOREGOING PARA, IT BECOMES EVIDENT THAT THE GOODS WERE TRANSPORTED TO CERTAIN PREMISES AT VASAI/BHAYANDAR MAHARASHTRA. FURTHER, AS PER THE FINDINGS GIVEN BY THE ASSESSING OFFICER OF M/S H K IMPEX PVT. LTD. IN THE ASSESSMENT ORDER U/S. 143(3) R.W.S. 147 OF THE ACT DATED 24/12/2011 FOR A.Y. 2006 - 07, GOODS WERE DELIVERED AT FACTORY PREMISES OF M/.S. H. K IMPEX PVT. LTD.AT UMBERGAON,GUJARAT. THESE TWO FACTS TAKEN TOGETHER LEAD TO THE CONCLUSION THAT THE AS SESSEE COMPANY MADE UNACCOUNTED SALES OF RS.69,72,741/ - TO VARIOUS PARTIES AT VASAI/BHAYANDAR. 8. IN ITS SUBMISSION, THE ASSESSEE HAS MERELY RELIED UPON THE AUDITED ACCOUNTS OF RE ASSESSEE AND EXCISE INVOICES/CHAL L ANS, TRANSPORT L.R. PAYMENT B Y CHEQUE ET C. HOWEVER, THE ENTRIES MADE BY THE ASSESSEE IN ITS BOOKS OF ACCOUNT ARE NOT FULLY RELIABLE. THE STATEMENTS OF DIRECTORS OF THE COMPANY THEMSELVES CONTRADICT THE DETAILS STATED IN INVOICE/CHALLAN, TRANSPORT L R. ETC. AS THEY HAVE STATED THAT THE PLACE OF D ESTINATION MENT I ONED IN THE CHALLAN IS INCORRECT. FURTHER, PAYMENT BY CHEQUE IN ITSELF IS NOT THE CONCLUSIVE PROOF FOR GENUINENESS OF ANY TRANSACTION. MOREOVER, THE STATEMENTS OF THE DIRECTORS OF THIS COMPANY HAVE BEEN CORROBORATED BY THE TRANSPORTER ALSO. THEREFORE, THE SUBMISSIONS MADE BY THE ASSESSEE ARE NOT ACCEPTABLE AND THE SAME ARE HEREBY REJECTED. 9. IN VIEW OF THE ABOVE, IT IS CLEAR THAT THE ASSESSEE HAS MADE UNACCOUNTED SALES OF RS.69 , 72 , 741/ - DURING THE YEAR UNDER CONSIDERATION. IT IMPLIES THAT EITHER THE ASSESSEE IS MAKING UNACCOUNTED PRODUCTION OR MAKING PURCHASES IN CASH. EVEN IN CASE OF PURCHASE IN CASH, THE SAME IS NOT AN ALLOWABLE EXPENDITURE UNDER THE PROVISIONS OF SECTION 40A(3) OF THE ACT. T HEREFORE, ENTIRE UNACCOUNTED SALES OF RS.69,7 2,741/ - IS HEREBY ADDE D TO THE TOTAL INCOME OF THE ASSESSEE. PENALTY PROCEEDINGS U/S.271(1) (C) ARE INITIATED FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 5. A GGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BUT WITHOUT ANY SUCCESS. LEARNED CIT ( A ) UP HELD THE ADDITION MADE BY THE ASSESSING O FFICER, THOUGH AS UNEXPLAINED CREDIT RATHER THAN AS UNACCOUNTED SALES . THE OPERATIVE PORTION OF THE CIT(A) S ORDER IS AS FOLLOWS : - ITA NO. 3001 / AHD/201 3 ASSESSMENT Y EAR: 20 0 5 - 06 PAGE 4 OF 7 6. I HAVE GONE THROUGH THE ASSESSMENT ORDER AND SUBMISSIONS OF THE A.R. OF THE APPELLANT CAREFULLY. IT IS SEEN THAT THE ASSE S SING O FFICER HAS MENTIONED IN DETAIL ABOUT THE INQUIRIES CONDUCTED BY DGCEI WHEREIN IT HAS BEEN ESTABLISHED THAT THE GOODS HAVE NOT BEEN DELIVERED TO M/S. H.K. IMPLEX PVT. LTD. THUS, THE SALES TRANSACTION S SHOWN BY THE APPELLANT BECAME QUESTIONABLE. ONCE IT IS HELD THAT THE MONEY DEPOSITED IN THE ACCOUNTS OF THE APPELLANT IS NOT ON ACCOUNT OF GENUINE SALES MADE BY IT, THEN THE SAME REPRESENTS UNEXPLAINED CASH CREDITS IN THE BOOKS OF ACCOUNTS OF THE APPELL ANT.' DURING THE COURSE OF APPELLATE PROCEEDINGS, THE A.R. OF THE APPELLANT FILED SUBMISSIONS STATING THAT THE GOODS WERE DELIVERED TO OTHER PERSONS AND NOT M/S. H.K. IMPEX PVT. LTD. ON THE INSTRUCTION OF M/S. H.K. IMPEX PVT. LTD. THUS, THE A.R. OF THE APP ELLANT CONTENDED THAT THE SALES OF THE APPELLANT WERE NOT UNACCOUNTED BECAUSE THE DELIVERY TO OTHER PARTIES WERE MADE ON ACCOUNT OF INSTRUCTIONS OF M/S. H.K. IMPEX PVT. LTD. 6.1 VIDE ORDER - SHEET ENTRY DATED 29.10.2013, THE A.R. OF THE APPELLANT WAS ASKED T O FURNISH THE EVIDENCE TO SHOW T HAT THE DELIVERY WAS MADE TO PLACE AND OTHER THAN THE FACTORY OF M/S. H.K. IMPEX PVT. LTD. ON THE INSTRUCTIONS OF M/S. H.K. IMPEX PVT. LTD. THE A.R. OF THE APPELLANT WAS ALSO ASKED TO FILE CONFIRMATION OF M / S. H.K. IMPEX P VT. LTD. REGARDING THE PURCHASES MADE AND SHO W EVIDENCE OF SALES PROCEEDS RECE IVED FROM M/S. H.K. IRNP E X PVT. LTD. THE CASE WAS ADJOURNED T O 25. 11.2013. HOWEVER, NO COMPLIANCE AS WELL AS NO LETTER SEEK ADJOURNMENT HAS BEEN FILED B Y TH E APPELLANT. 6.2 IN VIEW OF THE ABO V E , IT IS CLEAR THAT THE CONTENTION OF THE APPELLANT THAT IT HAD MADE DELIVERY TO OTHER PARTIES AND M/S. H.K. IMPEX PVT. LTD. ON THE INSTRUCTIONS OF M/S. H.K. IMPEX PVT. LTD. ITSELF IS NOT CORRECT. THE ADDITION MADE BY THE ASSESSING OFFICER IS HENCE JUSTIFIED. THE SAME IS CONFIRMED. 6. T HE ASSESSEE IS AGGRIEVED AND IS IN APPEAL BEFORE US . 7 . WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF APPLICABLE LEGAL POSITION. 8. T HE VERY FOUNDATIONAL BASIS OF REASONS RECORDED FOR REOPENING THE ASSESSMENT IS THE STATEMENT OF SHRI KARTIK SHAH, A DIRECTOR IN THE ASSESSEE COMPANY, GIVEN BEFORE SR. INTELLIGENCE OFFICER, DIRECTORATE GENERAL OF REVENUE INTELLIGENCE , VAPI ON 19.06.2007 . I T IS ON THIS BASIS THAT THE ASSESSING O FFICER FORMED THE BELIEF THAT THE ASSESSEE HAD MADE UNACCOUNTED SALES . HOWEVER, WHEN WE PERUSED THIS STATEMENT, WE ARE UNABLE TO FIND ANY INDICATION ABOUT UNACCOUNTED SALES. ALL THAT THIS STATEMENT SHOWS IS THAT THE GOODS SENT BY THE ASSESSEE WAS DELIVERED TO H . K . IMPEX PVT . LTD . WAS DELIVERED AT AN ADDRESS ITA NO. 3001 / AHD/201 3 ASSESSMENT Y EAR: 20 0 5 - 06 PAGE 5 OF 7 OTHER THAN IT S PREMISES AT GIDC ESTATE, UMBERGAON. IN THIS CONTEXT, FOLLOWING EXTRACTS FROM THE AFORESAID STATEMENT MAY BE REFERRED TO : - Q - 1. KINDLY EXPL AIN HOW YOU ARRANGE THE TRANSPORTATION OF S.S. COILS FROM YOUR FACTORY TO THE CONSIGNEE S ADDRESS ? ANS: ONCE THE S.S. COILS ARE READY FOR DISPATCH WE CONTACT OUR TRANSPORTER M/S. AMBICA TRANSPORT SE RV ICES, AHMEDABAD WHO ARRANGES THE TRUCKS AND THEN GOODS ARE LOADED AND NECESSARY DOCUMENTS LIKE CENTRA L EXCISE INVOICE, GATE PASS & L.R ARE PREPARED. COPY OF INVOICE AND L.R ARE HANDED OVER TO THE TRUCK DRIVER FOR DELIVERY AT CONSIGNEE'S ADDRESS. Q - 2. IN CASE THE GOODS ARE TO BE DELIVERED AT A PLACE OTHER TH A N THE CONSIGNEE'S ADDRESS GIVEN IN INVOICE & L.R DO YOU PREPARE ANY DOCUMENT FOR DELIVERY OF GOODS AT OTHER PLACE? ANS: WE DON'T PREPARE ANY SEPARATE STATUTORY DOCUMENT. HOWEVER IF THE CONSIGNEE INSISTS A SEPARATE CHIT/PAPER SLIP INDICATING THE PHONE N UMBER OF THE PERSON TO BE CONTACTED AND DESTINATION AND SAME IS HANDED OVER TO DRIVER TO CALL THE CONCERNED PERSON AFTER REACHING DESTINATION. Q - 3. IN RESPECT OF S.S. COILS SOLD TO M/S. H. K. IMPEX PVT. LTD., C/ 1 /B - 263/2, G1DC ESTATE, UMBERGAON CAN YOU TELL US WHETHER THE S.S. COILS WERE DELIVERED AT UMBERGAON OR AT ANY OTHER PLACE? A NS : THOUGH THE CONSIGNEE'S ADDRESS WAS UMBERGAON AS PER THE INVOICE & L.R THE MATERIAL WAS DELIVERED AT VASAI/BHAYANDER AT THE REQUEST OF SHRI DEEPAK AGARWAL, DIRECTOR OF M/S. H. K. IMPEX PVT. LTD. Q - 4. PLEASE EXPLAIN WHERE AND HOW EXACTLY THE S.S. COILS MEANT FOR M/S. H.K. IMPEX PVT. LTD . WERE DELIVERED AT VASAI/BHAYANDER AREA? ANS: THE DRIVER OF TRUCK ON REACH ING VASAI USED TO CALL THE CONCERNED PERSON FROM M/S. H .K. IMPEX PVT. LTD., FOR FARTHER DIRECTION AND BASED ON THE DIRECTION RECEIVED DRIVER USED TO DELIVER THE SPECIFIED QUANTITIES OF S.S. COILS AT DIFFERENT PLACES IN VASAI/BHAYANDER AREA. THIS DELIVER Y WAS SUPERVISED BY OUR REPRESENTATIVE SHRI DHIRAJ JAIN WH O IS STATIONED AT VASAI/BHAYANDER. THEREAFTER SHRI DHIRAJ JAIN USED TO MAKE SUITABLE REMARK ON THE REVERSE OF L.R INDICATING THE QUANTITY OF COILS RECEIVED/DELIVERED AND AMOUNT OF VARAI (UNLOADING CHARGES) PAID BY DRIVER. Q - 5. PLEASE SEE THE L.R. NO.127 97 DATED 27.12.2005, 12791 DATED 24.12.2005 ISSUED TO M/S. JIGAR PLAST, VASAI WHERE THE FREIGHT RATE IS RS.0.85/KG AND COMPARE THE SAME WITH L.R NO. 12754 DATED 12.12.2005, 12674 DATED 30.11.2005 ISSUED TO M/S. H.K. IMPEX PVT. L T D., UMBERGAON WHERE THE FRE IGHT RATE INDICATED IS RS.0.85/KG . THIS MEANS IN BOTH THE CASES THE S.S. COIL S WERE DELIVERED AT VAS AI AND THIS FACT WAS KNOWN TO THE TRANSPORTER WHILE PREPARING THE ITA NO. 3001 / AHD/201 3 ASSESSMENT Y EAR: 20 0 5 - 06 PAGE 6 OF 7 L.R S. DO YOU AGREE THAT THE S.S. COILS MEANT FOR M/S. H.K. IMPEX PVT . LTD., UMBERGAON WE RE DELIVERED AT VASAI ? ANS: ON GOING THROUGH THE ABOVE L.R S I AGREE THAT T HE S.S. COILS ME ANT FOR M/S. H.K. IMPEX PVT . LTD., UMBERGAON WE RE DELIVERED AT VASAI AS PER THE INSTRUCTION OF SHRI DEEPAK AGARWAL. Q - 6. DOES THAT MEAN THAT M/S. SHAH FOILS PVT . LTD . WAS HAVING AND UNWRITTEN UNDERSTANDING WITH TH E M/S. H.K. IMPEX PVT . LTD, REGARDING THE PLACE OF DELIVERY OF S . S . COILS AT VASAI. ANS: SINCE THE SS COILS ARE CLEARED ON PAYMENT OF DUTY AND M/S. H.K. IMPEX PVT LTD WANTED THEM TO B E DELIVERED AT VASAI FOR THE IR OWN REA S ONS WE HAVE NO OPT ION BUT TO COMPLY THE IR INSTRUCTIONS. Q - 7. CAN YOU NAME THE ADDRESSES OF THE UNITS AT VASAI & BHAYANDER AREA WHERE SS COILS PURCHASED BY M/S HK IMPEX PVT . LTD., WERE DELIVERED SINCE THE PLACES OF DELIVERY W A S KNOWN TO S HRI DHIRAJ JAIN WHO PAID THE VARAI FOR SUCH DELIVERIES? ANS I DO NOT KNOW THE NAMES AND ADDRESSES OF THE UNIT WHERE SS COILS WERE DELIVERED. I KNOW ONLY THAT THEY HAVE BEEN DELIVERED AT VARIOUS LOCATIONS AT VAS AI & BHAYANDER A REA FOR REASONS BETTER KNOW N TO M/S. H.K. IMPEX PVT. LTD. 9. IN OUR CONSIDERED VIEW, NO REASONABLE PERSON CAN DRAW AN INFERENCE, FROM THE ABOVE STATEMENT, THAT THE SALES ITSELF WAS UNACCOUNTED. ALL THAT THE STATEMENT EVIDENCES WAS THAT DELIVERY WAS GIVEN AT SOME OTHER ADDRESS, O T HER THAN THE PREMISES OF H . K . I MPEX PVT. LTD., AND THAT ASPECT OF THE MATTER WAS RELEVANT FROM THE POINT OF VIEW AS TO WHETHER, FOR EXAMPLE, HK IMP E X PVT . LTD . ACTUALLY EXPORTED THESE GOODS AT ALL OR NOT. IN OUR CONSIDERED VIEW, THEREFORE , THE REASONS REC ORDED FOR REOPENING THE ASSESSMENT WERE FACTUALLY INCORRECT. THERE WAS NO LEGALLY SUSTAINABLE BASIS FOR THE ASSESSING OFFICER TO HOLD THE BELIEF THAT THERE WAS ANY UNACCOUNTED SALES. AS A MATTER OF FACT, LEARNED CIT (A) HAS NOT EVEN SUSTAINED THE ADDITIONS AS ON ACCOUNT OF UNACCOUNTED SALES BUT AS UNEXPLAINED CREDITS . THE VERY FOUNDATION OF IMPUGNED REASSESSMENT PROCEEDINGS ARE THUS DEVOID OF LEGALLY SUSTAINABLE MERITS. IN VIEW OF THESE DISCUSSIONS, AS ALSO B EARING IN MIND ENTIRETY OF THE CASE, WE UP HOLD THE PLEA OF THE ASSESSEE AND QUASH THE IMPUGNED REASSESSMENT PROCEEDINGS. ITA NO. 3001 / AHD/201 3 ASSESSMENT Y EAR: 20 0 5 - 06 PAGE 7 OF 7 10. THE ASSESSEE S GRIEVANCES RELATING TO VALIDITY OF REASSESSMENT PROCEEDINGS, I.E. GROUND NOS.1 & 2 ARE THUS UPHELD. AS THESE GRIEVANCES ARE UPHELD AND THE REASSESSMENT ITS ELF IS QUASHED, ALL OTHER GRIEVANCES RAISED BY THE ASSESS E E, ARE RENDERED ACADEMIC AND REQUIRE NO ADJUDICATION AT THIS STAGE. 11 . IN THE RESULT, THE APPEAL IS ALLOWED IN THE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY O F APRIL , 2017 . SD/ - SD/ - S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: 28 TH DAY OF APRIL , 201 7 . PBN/* COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD