BOHRA TRADING COMPANY, Kota V. ITO, Kota

ITA 312/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5424 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 29-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA SINGH JCIT DHK
• Assessee Lawyers: MADHUKAR GARG
• Keywords: Reasonable cause

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 312/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2006-07. M/S. BOHRA TRADING COMPANY, BAZAR NO. 1, RAMGANJMANDI, DISTRICT KOTA. CUKE VS. THE INCOME TAX OFFICER, WARD 1(1), KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AA DFB 7061 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MADHUKAR GARG, CA JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA SINGH, JCIT LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16/02/2016. VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS ASSESSEES APPEAL FILED AGAINST THE ORDER OF THE LD. CIT (A), AJMER DATED 17.02.2014 FOR THE ASSESSMENT YEAR 2006-07 AGITATIN G THAT LD. CIT (A) HAS ERRED IN LAW AND ON FACTS IN (I) CONFIRMING ADDITION UNDER SECTION 40(A)(IA) OF THE IT ACT, AT RS. 2,03,705/- WHEREAS THE TDS THEREON HAS BEEN PAID BE FORE FILING OF THE RETURN; 2 ITA NO. 312/JP/2014 A/Y 2006-07. M/S. BOHRA TRADING CO. VS. ITO KOTA. (II) CONFIRMING CASH CREDIT IN THE NAME OF (A) SHRI MUKESH KUMAR JAIN RS. 1,00,000/- (B) M/S. RAMNIWAS LAXMANLAL RS. 50,000/- 2. I HAVE HEARD BOTH THE PARTIES. IT IS NOT DISPUTE D THAT QUA GROUND NO. 1, THE REQUISITE AMOUNT OF TDS WAS DEDUCTED AND PAID BEFOR E FILING OF THE RETURN. THE AMENDMENT MADE TO SECTION 40(A)(IA) HAS BEEN HELD T O BE RETROSPECTIVE IN NATURE. IN VIEW THEREOF THE DISALLOWANCE MADE QUA THE TDS AMOU NT AS MENTIONED IN GROUND NO. 1 IS DELETED. 3. APROPOS ISSUE OF CASH CREDITS, THE LD. COUNSEL F OR THE ASSESSEE CONTENDS THAT BY THE TIME OF ASSESSMENT THE FIRM WAS CLOSED DUE TO F INANCIAL DIFFICULTIES. THE ADDITION HAS BEEN MADE AS THE ASSESSEE COULD NOT PRODUCE RELEVAN T CONFIRMATIONS. AFTER GREAT EFFORTS, NOW THE ASSESSEE HAS BEEN ABLE TO PROCURE THE CONFIRMATIONS. DUE TO FINANCIAL DIFFICULTIES AND INSOLVENCY OF THE FIRM, THE CREDIT ORS WERE NOT COOPERATIVE AND THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE IN NOT B EING ABLE TO FILE THE CONFIRMATIONS BEFORE THE AO. AN APPLICATION DATED 25.11.2015 SUP PORTED WITH AFFIDAVIT OF THE ASSESSEE AND CONFIRMATIONS OF THE CREDITORS IS FILE D. 4. I HAVE HEARD BOTH THE PARTIES AND FOUND THAT ASS ESSEE WAS PREVENTED BY REASONABLE CAUSE IN NOT FILING THE CONFIRMATIONS FR OM THE CASH CREDITORS. NOW BOTH THE CASH CREDITORS HAVE FILED THEIR CONFIRMATIONS HAVIN G ADVANCED THE MONEY TO THE ASSESSEE, ALONG WITH PAN. IN THIS BEHALF, IN THE I NTEREST OF SUBSTANTIAL JUSTICE, THE ISSUE REGARDING CASH CREDIT IS SET ASIDE AND RESTORED BAC K TO THE FILE OF THE AO TO DECIDE THE ISSUE AFRESH AFTER AFFORDING REASONABLE OPPORTUNITY TO THE ASSESSEE. 3 ITA NO. 312/JP/2014 A/Y 2006-07. M/S. BOHRA TRADING CO. VS. ITO KOTA. 5. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/02/2016 . SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/02/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. BOHRA TRADING CO., KOTA. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD 1(1), KOTA. 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.312/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT REGISTRAR 4 ITA NO. 312/JP/2014 A/Y 2006-07. M/S. BOHRA TRADING CO. VS. ITO KOTA.