I.T.O.3(2), Gwalior V. M/s Sahaj Builders, Gwalior

ITA 409/AGR/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6852 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 16-11-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 29-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO.409/AGR/2010 ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER 3(2) VS. M/S. SAHAJ BUILDERS , GWALIOR. 49, SARASWATI NAGAR, GWALIOR. (PAN: AAYFS 3762 R). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.K. SHARMA, JR. D.R. RESPONDENT BY : NONE DATE OF HEARING : 16.11.2011 DATE OF PRONOUNCEMENT : 18.11.2011 ORDER PER BENCH : THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER OF LD. CIT(A), GWALIOR DATED 08.07.2010 FOR THE ASSESSMENT YEAR 2006-07. 2. NONE ATTENDED ON BEHALF OF THE ASSESSEE INSPITE OF VALID SERVICE OF NOTICE. THEREFORE, THE MATTER IS BEING DECIDED EX-PARTE BY HEARING THE LD. DEPARTMENTAL REPRESENTATIVE APPEARING FOR THE REVENUE AND ON THE FACTS AVAILABLE ON RECORD. ITA NO.409/AGR/2010 A.Y. 2006-07 2 3. THE REVENUE HAS RAISED THE FOLLOWING GROUND OF A PPEAL:- WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE THE CIT (APPEALS) HAS ERRED IN DELETING THE ADDITION OF ` 12,92,210/- ON ACCOUNT OF UNEXPLAINED SUNDRY CREDITORS.. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAS DECLARED SUNDRY CREDITORS AMOUNTING TO ` 12,92,210/-. THE ASSESSEE HAD FURNISHED COPY OF AC COUNTS OF EACH CREDITORS BUT COMPLETE ADDRESSES WERE NOT FURNISHED . DUE TO NON-FURNISHING OF THE COMPLETE ADDRESSES OF THE CREDITORS, THE GENUINENES S OF THE CREDITORS COULD NOT BE VERIFIED. THEREFORE, THE SAID LIABILITY WAS TREATE D AS FICTITIOUS BY THE A.O. AND THE SAME WAS ADDED TO THE INCOME OF THE ASSESSEE. 5. BEFORE THE LD. CIT(A) THE ASSESSEE SUBMITTED VAR IOUS DETAILS, COPIES OF ACCOUNTS, CONFIRMATIONS ALONGWITH BOOKS OF ACCOUNT AND BILLS AND VOUCHERS. IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT THESE DETAILS WERE NOT SUBMITTED BEFORE THE ASSESSING OFFICER DUE TO DIFFERENCE AMONGST THE PAR TNERS OF THE FIRM AND NOW THEY ARE BEING SUBMITTED BEFORE THE LD. CIT(A) AS ADDITI ONAL EVIDENCE. THE LD. CIT(A) AFTER RECEIVING ALL THE DETAILS AS MENTIONED HEREIN ABOVE SENT THE SAME TO THE ASSESSING OFFICER FOR EXAMINATION AND COMMENTS. TH E ASSESSING OFFICER SUBMITTED REMAND REPOT VIDE LETTER DATED 29.03.2010 WHICH WAS RECEIVED IN THE OFFICE OF THE LD. CIT(A) ON 08.04.2010 AND ALSO SUB SEQUENT REJOINDER BY THE ITA NO.409/AGR/2010 A.Y. 2006-07 3 ASSESSEE HAS ALSO BEEN RECEIVED. THE LD. CIT(A), A FTER CONSIDERING THE REMAND REPORT AND THE CONFIRMED COPY OF ACCOUNTS ETC., HAS OBSERVED THAT THERE IS NO ADVERSE MATERIAL ON RECORD BROUGHT BY THE ASSESSING OFFICER WITH REGARD TO THE SAID CONFIRMATIONS AND VOUCHERS OF PURCHASES. THE ASSES SEE HAS FURNISHED THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION . THE ASSESSING OFFICER HAS ACCEPTED THE SALES DECLARED BY THE ASSESSEE. THERE FORE, THE LD. CIT(A) IN THE ABSENCE OF ANY ADVERSE MATERIAL ON RECORD DELETED T HE ADDITION MADE BY THE A.O. 6. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. DEPARTMENTAL REPRESEN TATIVE MAINLY RELIED UPON THE ORDER OF THE A.O. ON A PERUSAL OF FACTS ON RECORD, WE ARE OF THE VIEW THAT THERE IS NO DISPUTE ON THE FACT THAT THE ASSESSING OFFICER D OES NOT HAVE ANY ADVERSE MATERIAL WITH REGARD TO THE PURCHASES OF THE MATERI AL AND THE SALES THEREOF. IN THE REMAND PROCEEDINGS, THE ASSESSING OFFICER DID NOT M AKE ANY EFFORT TO SUMMON THE SAID CREDITORS. THE CONFIRMATIONS SENT TO THE ASSE SSING OFFICER IN THE REMAND PROCEEDINGS HAVE NOT BEEN PROVED TO BE FALSE BY THE A.O. THEREFORE, IN THE CIRCUMSTANCES AND FACTS OF THE CASE, IN THE ABSENCE OF ANY ADVERSE MATERIAL AGAINST THE ASSESSEE WITH RESPECT TO THE SUNDRY CREDITORS, THE A.O. IS NOT JUSTIFIED IN MAKING SUCH ADDITIONS. WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN THIS RESPECT. THUS, THE GROUND OF THE REVENUE IS DISMISSED. ITA NO.409/AGR/2010 A.Y. 2006-07 4 7. IN THE RESULT, APPEAL OF THE REVENUE IN ITA NO.4 09/AGR/2010 IS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 18.11.2011). SD/- SD/- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 18 TH NOVEMBER, 2011 PBN/* COPY OF THE ORDER FORWARDED TO: APPELLANT/RESPONDENT/CIT CONCERNED/CIT(APPEALS) CO NCERNED/D.R., ITAT, AGRA BENCH, AGRA/GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY