The ITO, Ward-1(4), Surat V. Poonam Dyg. & Ptg. Mills (P) Ltd., Surat

ITA 3186/AHD/2009

• Counselvise Citation: 318620514 RSA 2009
• Duration Of Justice: 1 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 30-08-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 27-11-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: JAIMINE GANDHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND A. N. PAHUJA, AM) ITA NO.3186/AHD/2009 A. Y.: 2006-07 THE INCOME TAX OFFICER, WARD 1 (4), ROOM NO.206, 2 ND FLOOR, AAYAKAR BHAVAN, MAJURA GATE, SURAT VS M/S. POONAM DYEING & PRINTING MILLS PVT. LTD., 286, GIDC, PANDESARA, SURAT PA NO. AABCP 6272 B (APPELLANT) (RESPONDENT) APPELLANT BY SHRI VINOD TANWANI, SR. DR RESPONDENT BY SHRI JAIMINE GANDHI, AR DATE OF HEARING: 30-08-2011 DATE OF PRONOUNCEMENT: -09-2011 O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-I, SURAT DATED 23 RD SEPTEMBER, 2009, FOR ASSESSMENT YEAR 2006-07, CHALL ENGING THE ORDER OF THE LEARNED CIT(A) IN RESTRICTING THE ADDI TION MADE BY THE AO OF RS.69,30,814/- ON ACCOUNT OF UNEXPLAINED SUNDRY CREDITORS TO RS.46,16,297/-. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BO TH THE PARTIES AND PERUSED THE FINDINGS OF THE AUTHORITIES BELOW. 3. THE LEARNED CIT(A) ON THIS ISSUE NOTED THAT ADD ITION OF RS.69,30,814/- WAS MADE ON ACCOUNT OF SUNDRY CREDIT ORS WHICH ITA NO.3186/AHD/2009 THE ITO, WARD 1(4), SURAT VS M/S. POONAM DYEING & P RINTING MILLS PVT. LTD. 2 REMAINED UNVERIFIABLE. THE AO HAS NOTED THAT THE AS SESSEE HAS SHOWN SUNDRY CREDITORS OF CREDITS OF GOODS RS.2,64, 28,880/- AND THE SUNDRY CREDITORS FOR EXPENSES OF RS. 12,94,377/- TO TALING TO RS.2,77,23,257/-. THE AO FURTHER STATED THAT IN THE ABSENCE OF ANY DETAILS AND CORRESPONDING CONFIRMATION THESE CREDIT ORS COULD NOT BE VERIFIED, HE, THEREFORE, DISALLOWED 25% OF THIS AMO UNT AS UNVERIFIABLE. THE LEARNED CIT(A) HOWEVER, NOTED THAT DISALLOWANCE CAN ONLY BE MADE OF FRESH CREDITORS AND NOT ON OLD CREDITORS. T HE AO WAS, THEREFORE, DIRECTED TO RESTRICT THE ADDITION OF TOT AL FRESH CREDITORS DURING THE YEAR. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE APPEAL OF THE ASSESSEE IN ITA NO.3330/AHD/2009 FOR SAME ASSESSMENT YEAR HAS ALREADY BEEN DECIDED BY THE TRI BUNAL VIDE ORDER DATED 31-05-2011 AND THE APPEAL OF THE ASSESS EE HAS BEEN DISMISSED. HE HAS SUBMITTED THAT THERE IS NO INFIRM ITY IN THE DIRECTION OF THE LEARNED CIT(A) FOR MAKING ADDITION ON FRESH CREDITS RECEIVED DURING THE YEAR. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDER OF THE AO. 5. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF T HE VIEW THERE IS NO INFIRMITY IN THE ORDER OF THE LEARNED CIT(A) IN DIRECTING THE AO TO MAKE ADDITION ON TOTAL FRESH CREDITS RECEIVED DURIN G THE YEAR. APPEAL OF THE ASSESSEE ON THIS ISSUE HAS ALREADY BEEN DISM ISSED BY THE TRIBUNAL VIDE ORDER DATED 31-05-2011(SUPRA). COPY O F THE ORDER IS PLACED ON RECORD. IT WOULD, THEREFORE, SHOW THAT TH E LEARNED CIT(A) HAS RIGHTLY ISSUED THE DIRECTION IN THE MATTER. CON SIDERING THE ABOVE ITA NO.3186/AHD/2009 THE ITO, WARD 1(4), SURAT VS M/S. POONAM DYEING & P RINTING MILLS PVT. LTD. 3 DISCUSSIONS, THERE IS NO MERIT IN THE DEPARTMENTAL APPEAL. THE SAME IS ACCORDINGLY DISMISSED. 6. IN THE RESULT, THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A. N. PAHUJA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD