BHARAT TIN WORKS, MUMBAI V. ADDL CIT RG 20(1), MUMBAI

ITA 3381/MUM/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3062 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 14-05-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 14-05-2012
• Court: TRIBUNAL
• Department Lawyers: VINITA MENON
• Assessee Lawyers: MAYUR R MAKADIA
• Keywords: Principle of natural justice; Onus to prove
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE S/SHRI B.R. BASKARAN (AM) & RAMLAL NEGI (JM) I.T.A. NO. 3381 /MUM/ 20 12 (ASSESSMENT YEAR 200 5 - 0 6 ) M/S. BHARAT TIN WORKS OPP. BOROSIL GLASS WORKS MAROL MAROSHI ROAD MAROL, ANDHERI EAST MUMBAI - 4 00 059. VS. ADDL. CIT 20(1) MUMBAI ( APPELLANT ) ( RESPONDENT ) PAN NO . AAAFB5167D ASSESSEE BY SHRI MAYUR R. MAKADIA DEPARTMENT BY S MT.VINITA MENON DATE OF HEARING 14 . 6. 201 6 DATE OF PRONOUNCEMENT 14 . 6 . 201 6 O R D E R PER B.R. BASKARAN, A M : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 11 .1.20 08 PASSED BY LEARNED CIT(A) - 3 1 , MUMBAI AND IT RELATES TO A.Y. 2005 - 0 6 . 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LEARNED CIT(A) IN CONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER OUT OF EXPENSES CLAIMED BY THE ASSESSEE. 3. THE ASSESSEE IS CARRYING ON THE BUSINESS OF MANUFACTURING OF TIN CONTAINERS AND ALSO DEALING IN BOARDS USED FOR ADVERTISEMENTS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSIN G OFFICER ISSUED NOTICES U/S. 133(6) OF THE ACT TO CERTAIN PARTIES, WITH WHOM THE ASSESSEE HAD BUSINESS TRANSACTIONS. NOTICES W ERE NOT SERVE D IN RESPECT OF THREE PARTIES , VIZ., M/S. BASANT TRADING CO., M/S. MAHAVIR ROADLINES & M/S. BHANDARI PACKAGING. ACCO RDINGLY, THE ASSESSING OFFICER TREATED THE TRANSACTIONS ENTERED WITH THESE PARTIES AS UNPROVED TRANSACTIONS AND ACCORDINGLY DISALLOWED THE EXPENDITURE M/S. BHARAT TIN WORKS 2 RELATING TO THE SAME. LEARNED CIT(A) ALSO CONFIRMED THE ADDITION S MADE BY THE ASSESSING OFFICER. 4. THE FIRST PARTY IS M/S. BASANT TRADING CO. AND THE ASSESSEE HA S PURCHASED KOTA STONE FROM THIS PARTY. LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAD USED THESE KOTA STONES FOR CARRYING OUT REPAIR WORKS AT THE PREMISES OF THE ASSESSEE. HOWE VER, A PER US AL OF THE PAPER BOOK FURNI SHED BY THE ASSESSEE WOULD SHOW THAT THE ASSESSEE HAS FURNISHED ONLY BILLS RELATING TO PURCHASE OF KOTA STONE. EVIDENCES FOR TRANSPORTATION AND USAGE OF THE SAME IN THE PREMISES OF THE ASSESSEE WERE NOT FURNISHED. WHEN THESE POINTS WERE PUT TO LEARNED AR, HE SOUGHT AN OPPORTUNITY TO FURNISH THE RELEVANT DETAILS TO PROVE THE GENUINENESS OF PURCHASES . LEARNED DEPARTMENTAL REPRESENTATIVE ALSO SUBMITTED THAT THE EXPENDITURE COULD BE ALLOWED , IF THE ASSESSEE PROVES TH E GENUI NENESS OF PURCHASE MATERIAL AND USE OF THE SAME FOR REPAIR WORKS. 5. HAVING HEARD THE PARTIES ON THIS ISSUE, WE ARE OF THE VIEW THAT, IN THE INTEREST OF NATURAL JUSTICE, THE ASSESSEE SHOULD BE PROVIDED WITH ONE MORE OPPORTUNITY TO PROVE TH E GENUINENESS OF THE PURCHASES MADE FROM M/S BASANT TRADING COMPANY AND USE OF THE SAME FOR CARRYING OUT REPAIR WORKS . ACCORDINGLY WE SET ASIDE THE OR DER PASSED BY LEARNED CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERAT ION. 6. THE NEXT ISSUE RELATES TO PAYMENT MADE TO M/S . MAHAVIR ROADLINES. LEARNED AR INVITED OUR ATTENTION TO THE DOCUMENTS FURNISHED BY THE ASSESSEE BEFORE THE TAX AUTHORITIES, WHICH ARE PLACED IN THE PAPER BOOK. A PERUSAL OF THE SAME SHOWS THAT THE ASSESSEE HAD DEDUCTED TAX AT SOURCE FROM THE PAYMENT MADE TO M/S. MAHAVIR ROADLINES AND ALSO FURNISHED BILLS ISSUED BY THAT PARTY FOR TRANSPORTATION, BILLS FOR PURCHASE OF MATERIAL AND G OODS CONSIGNMENT NOTE. WE ALSO NOTICE THAT THE PROPRIETOR OF M/S . MAHAVIR ROADLINES HAS FILED AN AFFIDAVIT CONFIRMING THE TRANSACTIONS ENTERED WITH THE ASSESSEE. WE ALSO NOTICE THAT ALL THE PAYMENTS HAVE BEEN MADE THROUGH M/S. BHARAT TIN WORKS 3 BANKING CHANNELS. THUS, WE NOTICE THAT THE ASSESSEE HAS FURNISHED ALL THE RELEVANT DETAILS AND DI SCHARGED ITS ONUS TO PROVE GENUINENESS OF THE EXPENDITURE . A CCORDINGLY WE DO NOT FIND ANY MERIT IN THE ADDITION MADE IN RESPECT OF PAYMENT MADE TO M/S. MAHAVIR ROADLINES. ACCORDINGLY, WE SET ASIDE THE ORDER OF LEARNED CIT(A) PASSED ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION. 7. IN RESPECT OF PURCHASE S FROM M/S. BHANDARI PACKAGING , WE NOTICE THAT THE ASSESSEE HAS PURCHASED CERTAIN RAW MATERIALS AND THE ASSESSEE HAS FURNISHED COPIES OF BILLS, GOODS CONSIGNMENT NOTE AND EVIDENCE FO R PAYMENT OF OCTROI. WE FURTHER NOTICE THAT THE PAYMENT HAS BEEN MADE BY THE ASSESSEE THROUGH BANKING CHANNELS . PERUSAL OF THE BILLS ISSUED BY M/S. BHA NDARI PACKAGING WOULD ALSO SHOW THAT THE ASSESSEE HAS FURNISHED FORM NO.C REQUIRED UNDER SALES TAX ACT. UNDER THESE SET OF FACTS, WE ARE OF THE VIEW THAT THERE IS NO REASON TO DOUBT THE GENUINENESS OF THE PURCHASE S MADE FROM M/S. BHANDARI P ACKAGING. ACCORDINGLY, WE SET ASIDE THE ORDER OF LEARNED CIT(A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER HAS BEEN PRONOU NCED IN THE OPEN COURT ON 14 . 6 .2016 . SD/ - SD/ - (RAMLAL NEGI ) (B.R.BASKARAN ) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI ; DATED : 14 / 6/ 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// PS ( D Y./ASSTT. REGISTRAR) ITAT, MUMBAI