The Dy. Commissioner of Income-tax, Srinagar V. M/s. Gh. Mohd Bhat, Srinagar

ITA 310/ASR/2012

• Counselvise Citation: 31020914 RSA 2012
• Duration Of Justice: 1 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 24-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P. JAIN, ACCOUNTANT MEMBER I.T.A. NO.310 (ASR)/2012 ASSESSMENT YEAR: 2009-10 PAN: AGMPB-9694-F DY. COMMISSIONER OF INCOME VS. SH. GH. MOHD. BHAT , TAX, CIRCLE-3, SRINAGAR NARWARA, SRINAGAR (APPELLANT) (RESPONDENT) APPELLANT BY: SH. MAHAVIR SINGH, SR. DR RESPONDENT BY: SH. JOGINDER SINGH, CA DATE OF HEARING: 31.01.2014 DATE OF PRONOUNCEMENT: 03.02.2014 ORDER PER BENCH 1. THE PRESENT APPEAL WAS FILED AGAINST THE ORDER DA TED 22.05.2012 PASSED BY LEARNED CIT(A), JAMMU, FOR THE ASSESSMENT YEAR 2009-10. 2. LAST TIME, THE PRESENT APPEAL CAME UP FOR HEARIN G BEFORE THIS BENCH ON 04.09.2012 AND THIS BENCH VIDE ITS ORDER D ATED 07.09.2012, DISMISSED THE APPEAL OF THE REVENUE ON MERIT, BUT I NADVERTENTLY ESCAPED TO DECIDE GROUND NO. 4 INVOLVED IN THE PRESENT APPE AL. 3. NOW, THE ORDER DATED 07.09.2012 PASSED BY THIS B ENCH, HAS BEEN RECALLED VIDE ORDER DATED 31.01.2014 PASSED IN M.A. NO. 2 I.T.A. NO. 310 (ASR)/2012 ASSESSMENT YEAR: 2009-10 125(ASR)/2013 [ARISING OUT OF THE I.T.A. NO. 310 (A SR)/2012], THEREFORE WE PROCEED TO DECIDE GROUND NO. 4, WHICH REMAINED T O BE DECIDED, IN OUR EARLIER ORDER DATED 07.09.2012 4. WE HAVE HEARD BOTH THE PARTIES ON THE ISSUE INVO LVED IN GROUND NO. 4 AND WE ARE OF THE VIEW THAT THE LEARNED FIRS T APPELLATE AUTHORITY HAS DECIDED THE ISSUE INVOLVED IN GROUND NO. 4 IN PARA NO. 8 (PAGE NOS. 5 AND 6), WHICH IS REPRODUCED AS UNDER: 8. ANOTHER ADDITION WHICH IS CONTESTED AS PER GRO UND NO. 4 IS OF RS. 36,48,607/-. THIS AMOUNT REPRESENTED TRADE CRED ITORS AND WERE ADDED AS UNEXPLAINED CASH CREDITORS BY THE A.O. FOR NON-FURNISHING OF COMPLETE PARTICULARS REGARDING THEM. ONCE THE NET P ROFIT RATE IS APPLIED ON THE TOTAL TURNOVER TO ASSESSEE THE INCOM E, THE PURCHASES AND THE CREDITORS WHICH OF COURSE ARE COVERED IN PURCHA SES ARE TAKEN CARE OF AND NO SEPARATE ADDITION IS CALLED FOR. FOR THIS I RELY ON THE DECISION OF HON'BLE PUNJAB & HARYANA HIGH COURT IN CASE OF M /S AGGARWAL ENGINEERING CO. JALANDHAR IN ITR NO 206 CTR 648 WHI CH IS RELIED BY HON'BLE I.T.A.T. IN THE CASE OF M/S RESHI CONSTRUCT ION, KASHMIR IN ITA NO. 478 AMRITSAR/2008 DATED 22.07.2009, WHEREIN THE HON'BLE I.T.A.T., AMRITSAR HAS HELD AS UNDER: AS REGARDS TO SECOND GROUND REGARDING THE ADDITION OF RS. 15,00,000/- ON ACCOUNT OF UNEXPLAINED CREDITS. THE A.O., NOTICED THE SUNDRY CREDITORS FOR SUPPLIES AND SERVICES UNDER TH E HEAD CURRENT LIABILITIES TO THE TUNE OF RS. 66,47,821/-. ON ASK ING BY THE A.O., THE ASSESSEE COULD NOT FURNISH THE ADDRESS OF THE CREDI TORS AND SO LUMP- SUM ADDITION OF RS. 15 LACS WAS MADE ON ACCOUNT OF UNEXPLAINED CREDITS. AS PER THE CONTENTION OF THE ASSESSEE THAT THE A.O. HAS NOT GIVEN ANY BASIS FOR MAKING ANY ADDITION AND NO ADHO C ADDITION COULD BE MADE ONCE THE NET PROFIT RATE WAS BEING AP PLIED. IN SUPPORT OF HIS CONTENTION, THE ASSESSEE CITED THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT REPORTED IN 206 CTR 648 I N THE CASE OF 3 I.T.A. NO. 310 (ASR)/2012 ASSESSMENT YEAR: 2009-10 CIT VS. AGGARWAL ENGG. CO. (SUPRA). THE LEARNED CIT (A) CALLED FOR THE REMAND REPORT FROM THE A.O. AND DELETED THE ADD ITION BY FOLLOWING THE JUDGMENT OF THE HON'BLE JURISDICTION AL HIGH COURT (SUPRA). AFTER GOING THROUGH THE RELEVANT RECORD AV AILABLE WITH US AND THE DECISION RENDERED BY THE HON'BLE JURISDICTI ONAL HIGH COURT (SUPRA), WE ARE OF THE VIEW THAT THE LEARNED CIT(A) HAS DELETED THE ADDITION IN DISPUTE BY FOLLOWING THE ORDER OF THE J URISDICTIONAL HIGH COURT (SUPRA). NO INTERFERENCE IS CALLED FOR. THERE FORE, THE SECOND GROUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED . CONSIDERING THE ABOVE AND RESPECTFULLY FOLLOWING THE SAME. I HEREBY DELETE THE ADDITION OF RS. 36,48,602 SO MADE . 5. IN VIEW OF THE DECISION OF HON'BLE PUNJAB AND HA RYANA HIGH COURT IN THE CASE OF CIT VS. AGGARWAL ENGG. CO. REP ORTED IN 206 CTR 648, WHICH WAS RESPECTFULLY FOLLOWED BY THIS BENCH IN THE CASE OF M/S RESHI CONSTRUCTION, KASHMIR IN ITA NO. 478 AMRITSAR /2008 DATED 22.07.2009, WE ARE OF THE VIEW THAT ONCE THE NET PR OFIT RATE IS APPLIED ON THE TOTAL TURNOVER TO ASSESS THE INCOME, THE PURCHA SERS AND THE CREDITORS WHICH OF COURSE ARE COVERED IN PURCHASES ARE TAKEN CARE OF AND NO SEPARATE ADDITION IS CALLED FOR. 6. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES EXPL AINED ABOVE AS WELL AS THE ORDER PASSED BY LEARNED FIRST APPELLATE AUTHORITY ON THE ISSUE INVOLVED IN GROUND NO. 4, WE ARE OF THE VIEW THAT N O INTERFERENCE IS CALLED FOR IN THE IMPUGNED ORDER. ACCORDINGLY, WE UPHOLD T HE IMPUGNED ORDER DATED 22.05.2012 PASSED BY LEARNED CIT(A), JAMMU, O N THE ISSUE 4 I.T.A. NO. 310 (ASR)/2012 ASSESSMENT YEAR: 2009-10 INVOLVED IN GROUND NO. 4 AND DISMISS THE ISSUE RAIS ED BY THE REVENUE IN GROUND NO. 4. 7. IN THE RESULT, THE PRESENT APPEAL IS DISMISSED O N THE ISSUE INVOLVED IN GROUND NO. 4. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD FEBRUARY, 2014 SD/./- SD/./- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3 RD FEBRUARY, 2014 /RK/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: SH. GH. MOHD. BHAT, NARWARA, SRINAGA R 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE-3, SRINAGAR 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.