Bhayana Interiors & Furnishers Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 3206/DEL/2015

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5947 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 20-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S N MEENA
• Keywords: Business income
• Section: 143(3); 133(6); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B , NEW DELHI BEFORE S H. SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER AND S H . PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 3206 /DEL/201 5 ( ASSESSMENT YEAR: 20 07 - 08 ) BHAYANA INTERIORS & FURNISHERS PVT. LTD. 7, FAC TORY ROAD, NEAR SAFDARJUNG HOSPITAL NEW DELHI PAN NO. AABCB8161D VS INCOME TAX OFFICER WARD - 2 (4) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SH. S. N. MEENA, SR. DR DATE OF HEARING: 0 7 / 11 /201 9 DATE OF PRONOUNCEMENT: 03/02/2020 ORDER PER PRASHANT MAHARISHI , AM: 1 . THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD CIT(A) - 14, NEW DELHI DATED 13.03.2015 FOR ASSESSMENT YEAR 2007 - 08 RAISING EFFECTIVELY GROUND NOS. 2 AND 3 OF THE APPEAL AS UNDER: - 2. THE LEARNED CO MMISSIONER OF INCOME TAX (APPEALS) - XIV HAS WRONGLY, ARBITRARILY AND WITHOUT APPRECIATING THE FACTS OF THE CASE, CONFIRMED ADDITION OF RS 16,52,905/ - TO THE INCOME OF THE ASSESSEE COMPANY AMOUNT SHORT RECEIVED FROM PARTIES RELATING TO SALES, EVEN THOUGH ALL THE NECESSARY LEDGER ACCOUNTS WITH CONFIRMATIONS HAVE BEEN FILED DURING THE COURSE OF FR ASSESSMENT PROCEEDINGS. 3. T HE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - XIV HAS WRONGLY, ARBITRARILY AND WITHOUT APPRECIATING THE FACTS OF THE CASE, CONFIRMED THE DISALLOWANCE OF RS 15,00,000/ - OUT OF FOREIGN GRAVELLING ON THE GROUND THAT THE SAME HAS NOT BEEN INCURRED FOR THE PURPOSE OF THE BUSINESS OF THE ASSESSEE COMPANY. 2 . BRIEF FACTS OF THE CASE SHOWS THAT ASSESSEE FILED ITS RETURN OF INCOME ON 31.10.2007 DECLAR ING INCOME OF RS. 1,78,961/ - . THE ASSESSMENT U/S 143(3) PAGE | 2 OF THE INCOME TAX ACT, 1961 WAS COMPLETED ON 07/12/2009 AT RS. 1,98,699/ - . THE LD CIT(A) PASSED AN ORDER U/S 263 OF THE ACT ON 27.03.2012, PURSUANT TO THAT THE ASSESSMENT U/S 143(3) READ WITH SECTION 263 WAS PASSED ON 26.03.2012 AT RS. 65 , 28 , 297/ - . THE ASSESSEE CHALLENGED THE SAME BEFORE THE LD CIT(A) WHO DISMISSED THE APPEAL OF THE ASSESSEE. THE LD CIT(A) CONFIRMED THE ADDITION OF RS. 1652905/ - ON ACCOUNT OF DIFFERENCE IN THE SALE PROCEEDS IN PAINTING . HE ALSO CONFIRMED THE DISALLOWANCE OUT OF TRAVELING EXPENDITURE AMOUNTING TO RS. 15 LAKHS WHICH IS PENDING TO ASSESSMENT YEAR 2008 - 09. AGAINST THESE TWO ADDITIONS THE APPEAL OF THE ASSESSEE IS FILED. THE GROUND NO. 2 IS OF ADDITION OF RS. 16 , 52 , 905/ - . TH E ASSESSEE HAS SHOWN SALES OF RS. 16032453/ - IN PROFIT AND LOSS ACCOUNT HOWEVER, THE DETAIL S FILED DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS FOUND THAT ASSESSEE HAS SOLD PAINTING S OF RS. 1 , 76 , 85 , 000/ - . THE ASSESSEE WAS ASKED TO EXPLAIN THE SAME. T HE ASSESSEE TRIED TO EXPLAIN AND SUBMIT THE DIFFEREN CE IS ON ACCOUNT OF SALES RETURN. HE ALSO FILED THE CONFIRMATION WITH RESPECT TO THREE PARTIES. THE LD AO ISSUED NOTICED U/S 133(6) OUT OF THESE THREE PARTIES, TWO PARTIES DENIED TO HAVE MADE ANY SALES RE TURN TO THE ASSESSEE. THE THIRD PARTY COULD NOT BE SERVED SUCH NOTICE. THEREFORE, THE LD AO ISSUED FURTHER NOTICE TO THE ASSESSEE TO SHOW CAUSE WHY THE ABOVE ADDITION SHOULD NOT BE MADE TO THE INCOME OF THE ASSESSEE. TO THIS THE ASSESSEE DID NOT REPLY. IN VIEW OF THIS THE LD AO MADE THE ADDITION. BEFORE THE LD CIT(A) THE ABOVE ADDITION WAS CONFIRMED. THEREFORE, THE ASSESSEE HAS CHALLENGED IT VIDE GROUND NO. 2. 3 . THE SECOND ADDITION CHALLENGED IS THE ADDITION OF RS. 15 LAKHS OUT OF TRAVELLING EXPENDITURE. THE ASSESSEE HAS CLAIMED RS. 3998135/ - ON ACCOUNT OF VARIOUS TRAVELLING EXPENDITURE DURING THE 143(3) ASSESSMENT ITSELF THE ASSESSEE ADMITTED THAT RS. 15 LAKHS WAS PAID TO UNIGLOBE MODE TOURS AND TRAVELS WHICH DID NOT PERTAIN TO THE IMPUGNED ASSESSMENT YEAR . THE ASSESSEE SURRENDERED THE ABOVE DISALLOWANCE BEFORE THE LD AO VIDE LETTER DATED 09.02.2013 AND THEREFORE, SAME WAS DISALLOWED. BEFORE THE LD CIT(A) ASSESSEE CHALLENGED THE SAME AND HE CONFIRMED IT. PAGE | 3 4 . DESPITE NOTICE NONE APPEARED ON BEHALF OF THE ASSESSEE . PRIOR TO THIS DATE OF HEARING THERE WERE ALREADY SIX ADJOURNMENT S GRANTED TO THE ASSESSEE. THERE IS NO PLAUSIBLE REASON GIVEN BY THE ASSESSEE FOR ADJOURNMENT. IN VIEW OF THIS , THE APPEAL IS DECIDED AS PER FACTS AVAILABLE ON RECORD AND ADJOURNMENT REQUEST OF THE ASSESSEE IS REJECTED. 5 . THE LD DR VEHEMENTLY SUPPORTED THE ORDER OF THE LOWER AUTHORITIES. 6 . WE HAVE CAREFULLY CONSIDERED THE GROUNDS ON WHICH THE ADDITION OF RS. 1652905/ - HAS BEEN ADDED TO THE TOTAL INCOME OF THE ASSESSEE. AS PER DETAILS FURNISHED BY THE ASSESSEE IN THE ASSESSMENT PROCEEDINGS TOTAL SALES OF PAINTING WAS FOUND TO BE AT RS. 1768000/ - WHEREAS THE ASSESSEE HAS SHOWN SALES OF RS. 16032453/ - . THE CONFIRMATION SUBMITTED OF SALES RETURN OF THE ABOVE DIFFERENCE WAS FOUND TO BE FALLS AND ASSE SSEE FAILED TO REPLY WITH COGENT EVIDENCE ABOUT THE ABOVE DIFFERENCE BEFORE THE LOWER AUTHORITIES. FURTHER, OUT OF THREE PARTIES TWO PARTIES HAVE DENIED ANY SALES RETURN TO THE ASSESSEE COMPANY. THUS, IT IS CONCLUSIVELY PROVED BY THE LD AO THAT THE EXPLANA TION OF THE ASSESSEE WAS INCORRECT AND THE ADDITION WAS MADE. WE FIND NO INFIRMITY IN THE ORDER OF THE LOWER AUTHORITIES. ACCORDINGLY, GROUND NO. 2 OF THE APPEAL IS DISMISSED. 7 . GROUND NO. 3 RELATING TO DISALLOWANCE OF RS. 15 LAKHS AS ALREADY BEEN ACCEPTED BY THE ASSESSEE BEFORE THE LD CIT(A) THAT IT DID NOT PERTAIN TO THE IMPUGNED ASSESSMENT YEAR BY LETTER DATED 09.02.2013 , WE DO NOT FIND ANY INFIRMITY IN THE ORDERS OF THE AUTHORITIES IN CONFIRMING THE ABOVE DISALLOWANCE. 8 . IN THE RESULT, APPEAL OF THE ASSE SSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03/02/2020 - SD/ - - SD/ - ( SUDHANSHU SRIVASTAVA ) (PRASHANT MAHARISHI ) JUDICIAL MEMBER ACCOUNTANT MEMBER * AK KEOT * DATE: 03/02/2020 COPY FORWARDED TO: PAGE | 4 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI