ITO, New Delhi V. M/s. Sadhana Phosphates & Chemicals Ltd., New Delhi

ITA 3800/DEL/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7868 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 11-06-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 09-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K UPADHYAYA

Judgement Text

ITA NO. 3800/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 3800/DEL/2010 A.Y. : 2004-05 INCOME TAX OFFICER, WARD 7(2), R.NO. 306, CR BUILDING, NEW DELHI VS. M/S SADHANA PHOSPHATES & CHEMICALS LTD., B-59, ZAKIR NAGAR, NEAR SBI, NEW DELHI 110 048 (PAN/GIR NO. : AABCS7678G) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSESSEE BY : SH. K. SAMPATH, ADVOCATE DEPARTMENT BY : SH. S.K. UPADHYAYA, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-X, NEW DELH I DATED 14.5.2010 PERTAINING TO ASSESSMENT YEAR 2004-05. 2. THE GROUNDS RAISED READ AS UNDER:- I) LD. CIT(A) ERRED, IN LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE, IN DELETING THE ADDITION OF ` ITA NO. 3800/DEL/2010 2 18,47,170/- MADE BY THE AO FOR UNCONFIRMED UNSECURED LOAN. II) THE APPELLANT CRAVES TO AMEND, MODIFY, ALTER, AD D OR FORGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 3. IN THIS CASE AO NOTED THAT ASSESSEE HAS NOT PRO VIDED THE CONFIRMATIONS FOR A SUM OF ` 18,47,170/- RECEIVED AS UNSECURED LOAN. ACCORDINGLY HE MADE THE ADDITION OF THIS AMOUNT TO ASSESSEES INCOME. 4. UPON ASSESSEES APPEAL LD. CIT(A) NOTED THAT AO HAS MENTIONED AS PER REMAND REPORT, THAT AS PER NARRATION AVAILAB LE ON THE BANK STATEMENT OF THE ASSESSEE FILED DURING THE ASSESSME NT PROCEEDINGS, IT WAS SEEN THAT ON 22.8.2003 AND 28.8.2003 THE ASSESS EE HAD RECEIVED THE TWO AMOUNTS OF ` 9,98,000/- AND ANOTHER AMOUNT O F ` 9,98,000/- RESPECTIVELY FROM M/S PUNJAB AGRO FOOD GRAINS. FUR THER AN AMOUNT OF ` 2000/- WAS STATED TO HAVE BEEN DEDUCTED BY THE BANK FOR EACH TRANSACTION AS THEIR CHARGES. AS PER THE REJOIND ER ASSESSEE SUBMITTED THAT IT COULD NOT FURNISH CONFIRMATION FROM M/S PUNJ AB AGRO FOOD GRAINS DURING THE ASSESSMENT PROCEEDINGS AS IT HAD DISPUTE S WITH THAT COMPANY. IN THE REMAND REPORT, THE AO HAS ALSO STA TED THAT THE ITA NO. 3800/DEL/2010 3 ASSESSEE ALSO FILED A COPY OF THE CLAIM OF RECOVERY ALLEGED BY M/S PUNJAB AGRO FOOD GRAINS CORPORATION LTD. BEFORE THE ARBITRATOR AT CHANDIGARH WHICH REFLECTS THE FACTUM OF RECEIPT OF TWO DEMAND DRAFTS TOTALING TO ` 20,00,000/- (INCLUDING BANK CHARGES) FROM M/S PUNJAB AGRO BY THE ASSESSEE. IN THE REMAND REPORT, AO HAS AL SO SUBMITTED THAT IT IS A FACT THAT THE THEN AO WHILE ADDING BACK THE UN CONFIRMED LOAN TAKEN DURING THE YEAR DID NOT APPRECIATE THE AMOUNT OF UNSECURED LOANS REPAID DURING THE YEAR. AO ALSO MENTIONED THAT IF THE AMOUNT REPAID IS TAKEN INTO ACCOUNT AND IF THE SAME IS REDU CED FROM ` 20 LACS, THE BALANCE COMES TO ` 18,47,170/- WHICH HAS BEEN A DDED BY THE AO. IN THE REJOINDER, IT WAS STATED THAT IN THE REMAND R EPORT AO HAS ACCEPTED THE ASSESSEES CONTENTION THAT THE AMOUNT OF UNSECURED LOAN STANDS CONFIRMED. CONSIDERING THIS, LD. CIT( A) OBSERVED THAT UNDER THE CIRCUMSTANCES, WHEN THE AO HAS VERIFIED TH E BANK STATEMENT OF M/S PUNJAB AGRO FOOD GRAINS AND OF THE ASSESSEE AN D HAS CERTIFIED THAT THE LOANS ARE GENUINE AND HAVE BEEN ACTUALLY T AKEN, IT IS FELT THAT THE ADDITION MADE BY THE AO BECOMES UNJUSTIFIED. IN THE LIGHT OF THE ABOVE FACTS, THE ADDITION OF ` 18,47,170/- MADE BY THE AO WAS DELETED. 5. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF THE MATERIAL PRODUCED AND PRECEDENTS RELIED UPON. WE FIND THAT THE LD. CIT(A) HAS ITA NO. 3800/DEL/2010 4 CATEGORICALLY STATED THAT IN HIS FINDING THAT AO HA S VERIFIED THE BANK STATEMENT OF M/S PUNJAB AGRO FOOD GRAINS AND OF THE ASSESSEE AND HAS CERTIFIED THAT THE LOANS ARE GENUINE AND HAVE BEEN ACTUALLY TAKEN. IN THIS VIEW OF THE MATTER, THE ADDITION CANNOT BE S USTAINED. HENCE, WE CONCLUDE THAT THERE IS NO INFIRMITY IN THE ORDER OF THE LD. CIT(A). ACCORDINGLY, WE UPHOLD THE SAME. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/6/2012. SD/- SD/- [ [[ [R.P. TOLANI R.P. TOLANI R.P. TOLANI R.P. TOLANI] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 15/6/2012 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES