Max Pure Water System Pvt.Ltd., Surat V. The ACIT.,OSD(II)Range-I, Surat

ITA 3287/AHD/2011

• Counselvise Citation: 328720514 RSA 2011
• Duration Of Justice: 3 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-08-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 29-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: S H RI G.D. AGRAWAL , VICE PRESIDENT AND SHRI S.S. GODARA , JUDICIAL MEMBER MAX PURE WATER SYSTEM PVT. LTD, 7004, TURNING POINT COMPLEX, BHATTAR ROAD, 395007 (GUJ) PAN: AAECM4724E (APPELLANT) VS ACIT OSD(II), RANGE - 1, SURAT (RESPONDENT) REVENUE BY: S H RI PARVEEN KUMAR , SR. D. R. ASSESSEE BY: WRITTEN SUBMISSION DATE OF HEARING : 03 - 08 - 2 015 DATE OF PRONOUNCEMENT : 14 - 08 - 2 015 / ORDER PER : S. S. GODARA , JUDICIAL MEMB ER: - THIS AS SESSEE S APPEAL FOR A.Y. 2006 - 07 , ARISES FROM ORDER OF THE CIT(A) - I, SURAT DATED 30 - 09 - 2011 IN APPEAL NO. CAS - I/10 /2011 - 12, IN PROCEEDINGS UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . ITA NO. 3287 /AHD/20 12 ASSESSMENT YEAR 200 6 - 07 ITA NO. 3287/AHD/2012, A.Y. 2006 - 07 MAX PURE WATER SYSTEM PVT. LTD. VS. ACIT PAGE NO. 2 2. CASE CALLED TWICE. NONE PR ESENT AT THE ASSESSEE S BEHEST. AN RPAD NOTICE DATED 01 - 07 - 2015 STANDS SERVED . T HE ASSESSEE HAS ALREADY PLACED ON RECORD WRITTEN SUBMISSIONS DATED 04 - 05/02 - 2015 SEEKING TO DELETE THE IMPUGNED PENALTY OF RS. 1,00,972/ - U/S. 271(1)(C) OF THE ACT ARISING FROM AN ADDITION OF UNEXPLAINED CASH CREDIT S AMOUNTING TO RS. 3 LACS ADDED IN THE COURSE OF A REGULAR ASSESSMENT FRAMED ON 24 - 12 - 2008. 3. WE HAVE HEARD THE REVENUE AND GONE THROUGH THE CASE FILE. THE ASSESSEE COULD NOT PRODUCE ITS CREDITORS SMT. MURDU LABEN D. DALAL ON THE ISSUE OF HAVING RECEIVED UNSECURED LOAN AMOUNTING TO RS. 3 LACS. THE ASSESSING OFFICER MADE THE IMPUGNED ADDITION IN ASSESSMENT ORDER. THE CIT(A) UPHELD THE SAME IN HIS ORDER DATED 16 - 11 - 2002. THEREAFTER, THE ASSESSING OFFICER TOOK UP THE IMPUGNED PENALTY PROCEEDINGS. THE ASSESSEE EXPLAINED THAT IMPUGNED CREDIT SUM WAS AVAILED AND REPAID THROUGH BANKING CHANNEL ONLY ON 31 - 12 - 2005 AND 31 - 11 - 2007 ; RESPECTIVELY. IT PLACED ON RECORD BANK SLIPS IN EVIDENCE. THE ASSESSING OFFICER REJECT ED THE SAID EXPLANATION AND HELD THAT ASSESSEE S FAILURE IN PRODUCING ITS ABOVE STATED CREDITOR AMOUNTED TO FURNISHING OF INACCURATE PARTICULARS OF INCOME FOR IMPOSING THE PENALTY UNDER CHALLENGE OF RS. 1,00,972/ - . 4. THE CIT(A) HAS ALSO UPHELD THE ASS ESSING OFFICER S ACTION. 5. WE HAVE HEARD THE REVENUE S CONTENTIONS. T HE ASSESSEE S WRITTEN SUBMISSION S COMPRIS E ITS BANK STATEMENT PROVING THAT THE ABOVE SAID LOAN OF RS. 3 LACS THROUGH BANK ING CHANNEL STOOD REPAID IN THE SAME MANNER . THE ONLY THIN G IS THAT IT COULD NOT PRODUCE THE CREDITOR IN PERSON. THE REVENUE FAILS TO REBUT THIS FACTUAL POSITION. WE OBSERVE IN THESE FACTS THAT THE PRESENT IS ONLY A CASE OF LACK OF SUFFICIENT EVIDENCE DURING SCRUTINY AND NOT THAT OF FURNISHING OF INACCURATE PAR TICULARS OF SO AS TO ATTRACT THE IMPUGNED PENALTY PROVISION. WE REITERATE TRITE PROPOSITION OF LAW THAT EACH AND EVERY ADDITION DOES NOT LEAD TO AUTOMATIC ITA NO. 3287/AHD/2012, A.Y. 2006 - 07 MAX PURE WATER SYSTEM PVT. LTD. VS. ACIT PAGE NO. 3 IMPOSITION OF PENALTY AS PER HON BLE APEX COURT DECISION IN CIT VS. RELIANCE PETRO PRODUCT 322 ITR 1 58. THE ASSESSEE S SOLE SUBSTANTIVE GROUND SUCCEEDS. THE IMPU GNED PENALTY IS DELETED. A SSESSEE S APPEAL IS ALLOWED. ORDER P RONOUNCED IN THE OPEN COURT ON 14 - 08 - 2015 SD/ - SD/ - (G. D. AGRAWAL ) (S.S. GODARA ) VI CE PRESIDENT JUDICIAL MEMBER AHMEDABAD : DATED 14 /08/2015 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,