M/s Innobyte Systems (P) Ltd., Faridabad V. ITO, New Delhi

ITA 3904/DEL/2013

• Counselvise Citation: 390420114 RSA 2013
• Duration Of Justice: 1 year(s) 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 10-09-2014
• Assessment Year: 2001-2002
• Appeal Filed On: 19-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K V S GUPTA SHRI SATPAL SIN
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 133(6); 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C : NEW DELHI) BEFORE SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.3904/DEL./2013 (ASSESSMENT YEAR : 2001-02) M/S. INNOBYTE SYSTEMS (P) LTD., VS. ITO, WARD 11 (4), 1 F / 93, NIT NEW DELHI. FARIDABAD. (PAN : AAACI2229Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI K.V.S. GUPTA, ADVOCATE REVENUE BY : SHRI SATPAL SINGH, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM TH E ORDER OF CIT (APPEALS)-XV, NEW DELHI DATED 22.12.2011. 2. IN THIS CASE, THE ASSESSING OFFICER RECEIVED AN INFORMATION FROM THE INVESTIGATION WING THAT ASSESSEE HAS TAKEN BOGUS AC COMMODATION ENTRIES. THE CASE WAS REOPENED BY ISSUING NOTICE U/S 148 OF THE INCOME-TAX ACT, 1961 AFTER RECORDING THE REASONS. THE ASSESSING OFFICER HAS A LSO CALLED INFORMATION U/S 133(6) OF THE ACT DURING THE ASSESSMENT PROCEEDINGS WHEREIN THE BANK HAS CONFIRMED THE INSTRUMENT NUMBER THROUGH WHICH THE A CCOMMODATION ENTRY WAS PROVIDED BY M/S. H.B. RELAN AND COY. AND CREDITED TO THE ASSESSEES ACCOUNT. THE ASSESSEE FILED AN APPEAL AND THE CIT (A) HAS CO NFIRMED THE ADDITION BY HOLDING AS UNDER :- ITA NO.3904/DEL/2013 2 7.5 ACCORDINGLY, SINCE THE APPELLANT HAS NOT DISC HARGED THE INITIAL ONUS OF PROVING THE GENUINENESS OF THE TRAN SACTION WITH HB RELAN AND CO. AND ALSO IN VIEW OF THE FACT THAT APPELLANT IS NOT ENGAGED IN THE BUSINESS OF INVESTMENT AND FINAN CING AND NO DETAILS OF SHARE/SECURITIES SOLD THROUGH HB RELAN A ND CO. WERE MADE AVAILABLE, HENCE IN THESE CIRCUMSTANCES I HOLD THAT THE MONEY RECEIVED IN APPELLANTS BANK ACCOUNT TO THE T UNE OF RS.10,11,210 IS TO BE TREATED AS UNEXPLAINED CREDIT AND IT CALLS FOR THE ADDITION UNDER SECTION 68 OF THE ACT. 3. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE. IT W AS PLEADED BEFORE US THAT THIS COMPANY WAS TAKEN OVER BY PRESENT MANAGEMENT I N THE YEAR 2004. THEY COULD NOT COLLECT THE COPIES OF BALANCE SHEET, BOOK S OF ACCOUNT AND OTHER DOCUMENTS FROM THE EARLIER MANAGEMENT. IT WAS ALSO CLAIMED BEFORE US THAT MATERIAL OR EVIDENCES COLLECTED BY ASSESSING OFFICE R WERE NOT CONFRONTED TO THE ASSESSEE WITH REGARD TO THE GENUINENESS OF TRANSACT IONS. AFTER HEARING BOTH THE SIDES ON THE ISSUE AND CONSIDERING THE RELEVANT MAT ERIAL ON RECORD, WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE AND EQUITY, TH IS ISSUE REQUIRES A RELOOK AT THE LEVEL OF ASSESSING OFFICER WHEREIN THE ASSESSEE SHA LL SUBMIT NECESSARY DOCUMENTS ASKED FOR. ACCORDINGLY, WE RESTORE THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING AFRESH AFTER PROVIDI NG AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 15 TH DAY OF SEPTEMBER, 2014. SD/- SD/- (I.C. SUDHIR) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 15 TH DAY OF SEPTEMBER, 2014 TS ITA NO.3904/DEL/2013 3 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XV, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR/ITAT