Ariel Sarees Pvt.Ltd., Surat V. The Income tax Officer,Ward-1(1), Surat

ITA 3333/AHD/2009

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6451 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 17-12-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SAMIR TEKRIWA LA
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

ITA NO.333/AHD/2009 . ASSESSMENT YEAR 2006-07. 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH,AHM EDABAD. ( BEFORE SHRI BHAVNESH SAINI & SHRI D.C. AGRAWAL) I.T .A. NO. 3333/AHD/2009 (ASSESSMENT YEAR 2006-07) ARIEL SAREES PRIVATE LTD., C/O POONAM DYEING & PRINTING . MILLS PRIVATE LTD., 286,G.I.D.C. PANDESARA, SURAT-394 230. (APPELLANT) VS. INCOME TAX OFFICER, WARD 1(1), AAYAKAR BHAVAN, MAJURA GATE, SURAT. (RESPONDENT) PAN: AABCA 9844N APPELLANT BY : MS.URVASHI SHODHAN. RESPONDENT BY : SHRI SAMIR TEKRIWALA, SR. D.R. ( (( ( )/ )/)/ )/ ORDER PER: SHRI BHAVNESH SAINI, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. C.I.T. (A)-I, SURAT DATED 23-9-2009 FOR ASSESSMENT YEAR 20 06-07 ON THE FOLLOWING GROUND:- THE LD. CIT (A) HAS GROSSLY ERRED IN LAW AND ON FA CTS, IN CONFIRMING ADDITION OF RS.12,00,000/- AS UNEXPLAINED CASH CRED IT UNDER SECTION 68 IN RESPECT OF UNSECURED LOAN. 2. IT IS STATED THAT THE APPEAL IS TIME BARRED BY 1 1 DAYS. THE AFFIDAVIT OF SHRI ANIL GARG DIRECTOR OF THE ASSESSEE-COMPANY IS FILED TO EXPLAIN THE DELAY WHICH WAS MAINLY ON ACCOUNT OF THE APPEAL PAPERS HA NDED OVER TO THE COURIER COMPANY FOR FILING THE APPEAL BEFORE THE TR IBUNAL. CONSIDERING THE ITA NO.333/AHD/2009 . ASSESSMENT YEAR 2006-07. 2 EXPLANATION OF THE ASSESSEE AND THAT THERE IS NOMIN AL DELAY, THE LD. D.R. HAS NO OBJECTION FOR CONDONING THE DELAY, WE CONDONE TH E DELAY IN FILING THE APPEAL. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE DID NOT COMPLY WITH THE STATUTORY NOTICES BEFORE THE A.O. AND NO DETAILS WE RE FURNISHED. THE A.O. THEREFORE, PASSED EX-PARTE ORDER. IT WAS FOUND THAT ASSESSEE HAS TAKEN UNSECURED LOAN OF RS. 12,00,000/- DURING THE ASSESS MENT YEAR UNDER APPEAL. THE ASSESSEE FAILED TO ESTABLISH THE IDENTITY OF TH E LENDERS, GENUINENESS OF THE TRANSACTION AND CAPACITY OF THE LENDER TO ADVANCE T HE LOAN. EVEN NO BOOKS OF ACCOUNTS HAVE BEEN PRODUCED IN THE ABSENCE OF ANY C ONFIRMATION AND MATERIAL ON RECORD, THE A.O. CONSIDERED THE CASH CR EDIT OF RS.12 LAKHS TO BE UNEXPLAINED CASH CREDIT AND MADE THE ADDITION U/S. 68 OF THE ACT. EVEN NO DETAILS WERE FURNISHED, BEFORE THE CIT (A) AND THER EFORE, THE CIT (A) DISMISSED THE APPEAL OF THE ASSESSEE. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CASH CREDITS HAVE BEEN GIVEN THROUGH BANKING CHANNEL. THEREFORE, NO A DDITION SHOULD HAVE BEEN MADE. ON THE OTHER HAND THE LD. D.R. SHRI SA MIR TEKRIWALA RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMIT TED THAT ASSESSEE DID NOT CO-OPERATE BEFORE THE AUTHORITIES BELOW AND NO DETA ILS HAVE BEEN FURNISHED, THEREFORE, THE APPEAL OF THE ASSESSEE MAY BE DISMIS SED. 5. ON CONSIDERATION OF THE RIVAL SUBMISSIONS WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE ASSESSEE. IT IS AN ADMITTED FACT THAT ASSESSEE DID NOT FILE ANY CONFIRMATION OF THE CASH CREDITS BEFORE THE AUTHORI TIES BELOW. THE ASSESSEE DID NOT PRODUCE BOOKS OF ACCOUNTS BEFORE THE A.O. A ND DID NOT COMPLY WITH ITA NO.333/AHD/2009 . ASSESSMENT YEAR 2006-07. 3 ANY STATUTORY NOTICES. IN THE ABSENCE OF ANY DETAIL S ON RECORD, ASSESSEE FAILED TO PROVE IDENTITY OF THE CREDITORS, GENUINENESS OF THE TRANSACTION AND THE CAPACITY OF THE LENDER. THUS THE ASSESSEE FAILED TO DISCHARGE ONUS ON IT TO PROVE THE GENUINENESS OF THE CREDIT. BEFORE THE LD. CIT (A) ALSO ASSESSEE DID NOT PRODUCE ANY CONFIRMATION OR THE EVIDENCE. IN TH E ABSENCE OF ANY EVIDENCE, LD. CIT (A) RIGHTLY DISMISSED THE APPEAL OF THE ASSESSEE. 6. SAME IS THE POSITION BEFORE THE TRIBUNAL. THE AS SESSEE DID NOT PRODUCE ANY EVIDENCE OR MATERIAL TO PROVE THE GENUINENESS O F THE CREDITS. IN THE ABSENCE OF ANY CO-OPERATION FROM THE SIDE OF THE AS SESSEE AND IN THE ABSENCE OF ANY EVIDENCE OR MATERIAL ON RECORD, WE DO NOT FI ND ANY MERIT IN THE APPEAL OF THE ASSESSEE. NO GROUND IS TAKEN EVEN FOR REMAND ING THE MATTER TO THE FILE OF THE A.O. NO MATERIAL IS PRODUCED WHY THE ASSESSE E DID NOT COMPLY WITH THE STATUTORY NOTICES. THE APPEAL HAS NO MERIT AND THE SAME IS THEREFORE, DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN OPEN COURT ON 31 - 05 - 2011 . SD/- SD/- (D. C. AGRAWAL) (BHAVNESH SAINI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD. DATED: 31 - 05 - 2011. S.A.PATKI. ITA NO.333/AHD/2009 . ASSESSMENT YEAR 2006-07. 4 COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-I, SURAT. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD. 1.DATE OF DICTATION - -2011 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING / / 2011 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S - -2011. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT - -2011 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S - -2011 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK - -2011. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..