Union Hide Co., Bulandshahr V. ITO, Bulandshahr

ITA 3230/DEL/2012

• Counselvise Citation: 323020114 RSA 2012
• Duration Of Justice: 3 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 03-08-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 22-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: J P CHANDREKAR
• Keywords: Prejudicial to interest
• Section: 143(3); 68; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : H NEW DELHI BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI J.SUDHAKAR REDDY, A CCOUNTANT M EMBER ITA NO. 2043 /DEL/201 0 AY : - 200 5 - 06 UNION HIDE CO. VS. CIT, AAYAKAR BHAWAN CHAUDHARY WARA BHAINSALI GROUND G.T.ROAD, SIKANDRABAD MEERUT BULANDSHAHR PAN: AACFG 2117 H A N D ITA NO. 3230/DEL/2012 AY : - 200 5 - 06 UNION HIDE CO. VS. ITO, WARD 4 CHAUDHARY WARA BULANDSHAHR G.T.ROAD, SIKANDRABAD BULANDSHAHR (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.P.CHANDREKAR, SR.D.R. RESPONDENT BY : S H. AKHILESH KUMAR, ADV. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE ASSESSEE. ITA 20 4 3 /DEL/2010 IS DIRECTED AGAINST THE ORDER PASSED BY THE LD.CIT , MEERUT U /S 263 OF THE INCOME TAX ACT, 1961 (THE ACT) DT. 30.3.2010, TO THE EXTENT RECALLED BY THE TRIBUNAL BY WAY OF ITS ORDER DT. 27.4.2012 IN THE M.A. BEARING NO.491/DEL/2010 ( IN ITA NO.2043/DEL/2010 ) FOR THE ASSESSMENT YEAR (A.Y.) 2005 - 06. ITA 2043/DEL/2010 AND ITA 3230/DEL/2012 A.Y. 2005 - 06 2 1.1. ITA 3230 /DEL/ 2012 IS DIRECTED AGAINST THE ORDER OF THE LD.CIT(A), MEERUT DT. 1.3.2012, WHEREIN THE LD.CIT(A) CONFIRMED THE ORDER PASSED BY THE A.O. U/S 143(3) R.W.S. 263 OF THE ACT. 1.2. AS THE ISSUES THAT ARISE FOR OUR CONSIDERATION IN BOTH THESE APPEALS ARE COMMON, FOR THE SAKE OF CONVENIENCE THEY ARE HEARD TOGETHER AND DISPOSED OF BY WAY OF THIS COMMON ORDER. 2. WE FIRST TAKE UP ITA NO.2043/DEL/2010. 2.1. THE ORIGINAL ORDER PASSED BY THE TRIBUNAL I N AN APPEAL FILED BY THE ASSESSEE, AGAINST THE ORDER OF THE LD.CIT, MEERUT U/S 263 OF THE ACT, ON 31.8.2010 WAS RECALLED TO THE LIMITED EXTENT OF DISPOSING OF GROUND NO.4. 2.2. GROUND NO.4 READS AS FOLLOWS. 4. BECAUSE THE LD.CIT IS NOT RIGHT TO DIRECT THE AO TO PASS FRESH ASSESSMENT ORDER WHICH ACCORDING TO HER IS ERRONEOUS IN SO FAR AS PREJUDICIAL TO INTEREST OF REVENUE IN RESPECT OF OLD ADVANCES OF A.Y. 2002 - 03 AND OLD SUNDRY CREDITORS OF A.Y. 2001 - 02 AND TO CONSIDER THEIR TAXABILITY IN A.Y. 2005 - 06. 2.3. THE LD.COUNSEL FOR THE ASSESSEE MR.AKHILESH KUMAR, AD VOCATE, SUBMITTED THAT THE CREDITS IN QUESTION PERTAIN TO EARLIER YEARS AND THIS IS EVIDENT FROM THE PAPERS ON RECORD FILED IN THE FORM OF PAPER BOOK. HE SPECIFICALLY DREW THE ATTENTION OF THE BENCH TO THE SUBMISSIONS MADE BEFORE THE LD.CIT, IN RESPONSE TO NOTICE U/S 263 OF THE ACT. 2.4. THE SOLE CONTENTION IS THAT , A CREDIT THAT WAS RECEIVED AND CREDITED IN THE EARLIER YEAR, CANNOT BE ADDED DURING THE CURRENT YEAR. 2.5. SHRI JP CHANDREKAR, T HE LD.SR.D. R . RELIED ON THE ORDER OF THE LD.CIT AND SUBMITTED T HAT THE ASSESSEE HAD OFFERED TO TAX RS.9,50,000/ - OUT OF OUTSTANDING CREDIT BALANCE OF EARLIER YEAR FOR TAX AS INCOME . IT WAS SUBMITTED THAT THIS IS NOT AN ADDITION U/S 68 AND HENCE THE ARGUMENT OF THE ASSESSEE SHOULD BE DISMISSED. ITA 2043/DEL/2010 AND ITA 3230/DEL/2012 A.Y. 2005 - 06 3 3. AFTER HEARING RIV AL CONTENTIONS, WE ARE OF THE CONSIDERED OPINION, THAT THE SUBMISSIONS OF THE LD.SR.D.R. WERE UPHELD, FOR THE REASON THAT THE ADDITION IN QUESTION, IS NOT MADE U/S 68 OF THE ACT. THUS THE YEAR OF RECEIPT OF CREDIT AND ENTRY INTO THE BOOKS OF ACCOUNTS IS O F NO CONSEQUENCE. NO OTHER ARGUMENT HAS BEEN ADVANCED BEFORE US ON THIS ISSUE. THUS THIS GROUND OF THE ASSESSEE IS DISMISSED. 4. IN ITA 3230 /DEL/2012, THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS APPEAL IS CONSEQUENTIAL TO THE DECISION RENDERED W HILE DISPOSING OF APPEAL IN ITA 2043/DEL/2012. 4.1. IN VIEW OF THE ABOVE SUBMISSIONS OF THE LD.COUNSEL, AND AS NO OTHER SUBMISSIONS WERE MADE BEFORE US ON MERITS, WE DISMISS THIS APPEAL. 5. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH SEPTEMBER , 2015. SD/ - SD/ - [ G.C. GUPTA ] [J. SUDHAKAR REDDY] VICE PRESIDENT ACCOUNTANT MEMBER DT. THE 11 TH SEPTEMBER, 2015 MANGA ITA 2043/DEL/2010 AND ITA 3230/DEL/2012 A.Y. 2005 - 06 4 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES