ACIT, UDAIPUR V. M/s. Shri Sai Profin P. Ltd., UDAIPUR

ITA 347/JODH/2009

• Counselvise Citation: 34723314 RSA 2009
• Duration Of Justice: 2 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 08-12-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 12-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Section: 69

Judgement Text

1 ITA 347-09 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ) ITA NO. 347/JODH/2009 ASSTT. YEAR : 2000-01. THE ACIT, CIRCLE-2, VS. M/S. SHRI SAI PROFIN P. LTD., UDAIPUR. 305-A, CIRCLE VIEW APARTMENT, SUKHADIA CIRCLE, JODHPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.R. KOKANI RESPONDENT BY : SHRI AMIT KOTHARI DATE OF HEARING : 08.12.2011. DATE OF PRONOUNCEMENT : 15.12.2011. ORDER DATED : 15/12/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2000-01. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE ADDI TION OF RS. 6,00,000/- MADE BY ASSESSING OFFICER UNDER SECTION 69A. 3. DURING THE ASSESSMENT PROCEEDINGS, ON PERUSAL OF COPIES OF LEDGER ACCOUNT OF THE ASSESSEE IN THE BOOKS OF ACCOUNT OF M/S. JTFSPL AND M/S. ANU CONSTRUCTION, IT WAS SEEN THAT THE AMOUNT OF RS. 6,00,000/- HAS BEEN RECEIVED BACK IN CASH BY THE ASSESSEE. IN FACT, THE ASSESSEE HAS TAKEN A LOAN OF RS. 6,00,000/- FRO M THE ABOVE TWO PARTIES IN EARLIER YEAR AND THE LOAN LIABILITY HAS BEEN SHOWN IN THE BALANC E SHEET IN EARLIER YEAR. IN THE YEAR 2 UNDER CONSIDERATION THE AMOUNT WAS RETURNED BACK BY ACCOUNT PAYEE CHEQUE BY THE ASSESSEE. HOWEVER, THE ASSESSING OFFICER WAS OF THE VIEW THAT THAT THIS IS NOT ROUTINE TRANSACTION BUT THE REPAYMENT OF LOAN OR OTHER LIAB ILITY OR A CASE OF REVERSAL OF ACCOMMODATION ENTRY IN THE GUISE OF LOAN/LIABILITY ACQUIRED IN THE EARLIER YEAR. THEREFORE, HE MADE ADDITION OF RS. 6,00,000/- BY OBSERVING THA T AMOUNT OF RS. 6,00,000/- HAS BEEN RECEIVED BY ASSESSEE IN CASH AND ADDED THE SAME UND ER SECTION 69. DETAILED SUBMISSIONS WERE FILED BEFORE LD. CIT (A). IT WAS EXPLAINED TH AT THERE WAS A CREDIT BALANCE OF RS. 2,00,000/- IN THE NAME OF M/S. JTFSPL IN EARLIER YE AR AND A CHEQUE OF RS. 2,00,000- WAS GIVEN IN THE YEAR UNDER CONSIDERATION AND THE ACCOU NT OF THIS PARTY WAS SQUARED UP. SIMILARLY A CREDIT BALANCE OF RS. 4,00,000/- WAS TH ERE IN THE NAME OF M/S. ANU CONSTRUCTION IN EARLIER YEAR AND THE AMOUNT WAS PAI D BY CHEQUE IN THE YEAR UNDER CONSIDERATION AND THE ACCOUNT WAS SQUARED UP. THER E IS NO EVIDENCE WITH THE ASSESSING OFFICER AT ALL THAT THE ASSESSEE HAS RECEIVED THIS AMOUNT OF RS. 6,00,000/- IN CASH BY REVERSAL OF ACCOMMODATION ENTRY. THIS WAS PURELY A N ASSUMPTION AND PRESUMPTION ON THE PART OF THE ASSESSING OFFICER. COPIES OF ACCOUNT OF RESPECTIVE PARTIES WERE ALSO FILED ALONG WITH COPY OF BANK ACCOUNT. THE LD. CIT (A) A FTER CONSIDERING THE SUBMISSIONS FOUND THAT THERE WAS NO BASIS TO HOLD THAT ASSESSEE HAS RECEIVED THE CASH OF RS. 6,00,000/- BACK. THE AMOUNT WAS RECEIVED IN EARLIER YEAR. THE Y WERE PAID IN THE YEAR UNDER CONSIDERATION FROM KNOWN SOURCES. THEREFORE, ADDITI ON MADE UNDER SECTION 69 WAS NOT JUSTIFIED AND THE SAME WAS DELETED. 4. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A), SUBMISSIONS RELIED ON BY RESPECTIVE PARTIES, WE FIND NO INFIRMITY IN THE FIN DING OF LD. CIT (A). THE LD. CIT (A) HAS EXAMINED THE ISSUE IN DETAIL AND HAS GIVEN FINDING OF FACT. THE AMOUNT WAS PAYABLE IN 3 EARLIER YEAR BY THE ASSESSEE AND THE SAME HAS BEEN PAID DURING THE YEAR UNDER CONSIDERATION. THEREFORE, IT CANNOT BE SAID THAT T HE TRANSACTIONS WERE NOT REAL AND ASSESSEE HAS JUST SHOWN THE LIABILITY AND SQUARED U P THE SAME. THE AMOUNT OF RS. 6,00,000/- WAS PAID BY ASSESSEE FROM KNOWN SOURCES. THEREFORE, DRAWING ANY ADVERSE INFERENCE AGAINST ASSESSEE FOR THE YEAR UNDER CONSI DERATION, IN OUR VIEW WAS WITHOUT ANY BASIS AND THE LD. CIT (A) WAS JUSTIFIED IN ALLOWING THE APPEAL OF THE ASSESSEE. ACCORDINGLY WE CONFIRM THE ORDER OF LD. CIT (A). 5. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 15. 12.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, COPY FORWARDED TO :- THE ACIT, CIRCLE-2, UDAIPUR. M/S. SHRI SAI PROFIN P. LTD., UDAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 347/JODH/2009) BY ORDER, AR ITAT JODHPUR.