J. P. MIlls, Balotra V. ACIT, Central Circle-1, Jodhpur

ITA 317/JODH/2018

AI Insights

The case involves an appeal by J.P. Mills against the order of the CIT(A)-2, Udaipur, which confirmed the AO's addition of Rs. 88,353 to the assessee's income for the Assessment Year 2013-14. The addition was made on the grounds that the assessee failed to provide PAN numbers for certain creditors, thus not proving the genuineness of the transactions and the creditworthiness of the creditors. The Tribunal found that the assessee had provided sufficient details and confirmations for most creditors, shifting the onus to the AO, who did not conduct further inquiries.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122772 (ITAT-JODHPUR)
• Duration Of Justice: 5 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 13-08-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 21-06-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No.317/JODH/2018 Assessment Year : 2013-14 J.P. Mills, C/o Ashok Kumar Bansal, Chartered Accountant, Vijay Shanti Plaza, Near 2 nd Railway Crossing, Balotra-344022 PAN: AAEFJ2921K Vs ACIT, Central Circle-1, Jodhpur Appellant / Assessee Respondent / Revenue Assessee by Sh. Amit Kothari, Advocate Revenue by Ms. Nidhi Nair, JCIT-DR Date of hearing 14.08.2023 Date of pronouncement 18.08.2023 ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of Ld. CIT(A)-2, Udaipur dated 19.02.2018, emanating from assessment order dated 09.02.2016 passed under section 143(3) of the Act for A.Y. 2013-14. Findings & Analysis 2. We have heard both the parties and perused the records. Ld.AR had filed paper book containing copy of the details submitted before lower authorities. 3. In this case, the AO had made addition of Rs. 88,353/-. The AO observed that in case of certain creditors, assessee had not filed PAN numbers. The list of creditors is as under:- ITA No.317/JODH/2018 J.P. Mills 2 S.No. Name of the Creditor Amount 1. Manoj Textile Mills 11,803/- 2. S.M. Energy Taknik & Electronics 22,936/- 3. Daulal Rathi 47,336/- 4. Kothari Textile Agency 2,348/- 5. Ramesh Kumar Jhunjhunu Wala 2,978/- 6. Sarita Textile Agency 209/- 7. Shiv Shakti Agency 1,283/- Total 88,353/- 4. The AO held that assessee failed to prove genuineness of the transaction and creditworthiness. The ld. CIT(A) confirmed the addition. 5. We have perused the submission which was filed by the assessee before the lower authorities. On perusal of the submission of the ld. AR, it is observed in following cases. Manoj Textile Mills S.M. Energy Taknik & Electronics Daulal Rathi Kothari Textile Agency Ramesh Kumar Jhunjhunu Wala Shiv Shakti Agency The assessee had filed copy of confirmations containing address of the entities. These were sundry creditors pertaining to the business of the assessee of earlier years. Once assessee had filed address of the creditors, the onus shifted to the AO to verify creditors, if he wish to. However, in this case, the AO had not conducted any enquiries. The AO merely added these creditors as ITA No.317/JODH/2018 J.P. Mills 3 PAN numbers were not provided. 6. In this facts & circumstances of the case, we are of the opinion that once assessee filed confirmations of the creditors containing address of the creditors, assessee fulfilled its onus therefore, we direct the AO to delete the addition except of Sarita Textile Agency. For Sarita Textile Agency, the assessee has not filed copy of the confirmation containing address. Accordingly, appeal of the assessee is partly allowed. 7. In the result, the appeal of the assessee is partly allowed. Order pronounced on 18 th August, 2023. Sd/- Sd/- (PAVAN KUMAR GADALE) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18/08/2023 Sh. Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) Asstt. Registrar 5. The DR 6. Guard File Jodhpur Bench