Medicross Pharma Chem Ltd., Uttar Pradesh V. ACIT, Meerut

ITA 4394/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3702 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-05-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 11-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE MS. DIVA SINGH, JUDICIAL MEMBER ITA N O. 4394 /DEL/201 6 A SSESSMENT YEAR: 20 07 - 08 MEDICROSS PHARMA CHEM LTD. 90 - JAMUN MOHALLA, LAL KURTI, MEERUT CANTT, UTTAR PRADESH VS. ACIT CIRCLE - 1 MEERUT PAN : AAACM9391B (APPELLANT) (RESPONDENT) O R D E R PER DIVA SINGH , J .M . : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSAILING THE CORRECTNESS OF THE ORDER DATED 31.5.2016 OF CIT(A) MEERUT , NEW DELHI PERTAINING TO 20 07 - 08 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : - THE LE ARNED CIT (APPEAL) WAS NOT JUSTIFIED BY DISMISSING THE APPEAL. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) HAS NOT TAKEN INTO ACCOUNT THE FACTS OF THE CASE THAT THE DEPOSITORS ARE DIRECTORS WITH THE APPELLANT COMPANY AND PROOF OF THEIRS WRT ASSESS ABILITY AND CREDITWORTHINESS WERE SUBMITTED DURING THE ORIGINAL ASSESSMENT PROCEEDINGS. THE ASSESSEE CRAVES LEAVE TO ADD / ALTER ANY OF THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. THE LEARNED AR INVIT ING ATTENTION TO THE ASSESSMENT ORDER A ND THE IMPUGNED ORDER SUBMITTED THAT THE ASSESSEE IS IN THE BUSINESS OF MARKETING AND TRADING OF APPELLANT BY SH. K SAMBATH & MR. V. RAJKUMAR, ADV RESPONDENT BY SH. T. VASANTHAN, SR. D.R. DATE OF HEARING 2 4 - 08 - 201 7 DATE OF PRONOUNCEMENT 18.10.2017 2 ITA NO . 4394 /DEL/201 6 P HARMACEUTICAL MEDICINES AND DRUGS . THE ASSESSEE IN THE YEAR UNDER CONSIDERATION HAD RECEIVED AN AMOUNT OF RS. 5,55,000/ - AS UNSECURED LOAN FROM THE FOLLOWING PERSONS: - 1. SH. NEERAJ DEWAN RS. 30,000/ - 2. SH. AIZAZ FATIMA RS. 1,00,000/ - 3. SH. S.K. SHARMA RS. 1,00,000/ - 4. SH. ARIF MASOOD RS. 55,00/ - 3. THE ASSESSEE WAS REQUIRED TO ESTABLISH THE IDENTITY , CREDITWORTHINESS AND GENUINENESS OF THE TR ANSACTION . T HE ASSESSEE IN RESPONSE THERETO ADMITTEDLY FILED COPIES OF THE BANK STATEMENT, COPY OF INCOME TAX RETURNS AND CONFIRMATIONS OF THE CREDITORS. INVITING ATTENTION TO THE IMPUGNED ORDER AND THE ASSESSMENT ORDER IT WAS SUBMITTED THAT THE EXPLANATIO N ADVANCED WHICH HAS NOT BEEN REBUTTED OR NEGATIVELY COMMENTED UPON BY THE ASSESSING OFFICER WHO MECHANICALLY MADE THE ADDITION OF RS. 2,50,000/ - HOLDING THAT THE AMOUNTS WERE NOT EXPLAINED . THE ONUS CASTE UPON THE ASSESSEE IT WAS SUBMITTED STOOD DISCHAR GED. ASSAILING THE ORDERS, IT WAS HIS SUBMISSION THAT RELIANCE PLACED ON DECISIONS WITHOUT ASSAILING THE EVIDENCE RELIED UPON IS AN INCORRECT APPROACH ADOPTED BY THE TAX AUTHORITIES. THE LEARNED SR. DR RELIED UPON BY THE ORDERS. 4. I HAVE HEARD THE SUBMIS SIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON A CONSIDERATION OF THESE SUBMISSIONS AND THE MATERIAL ON RECORD, I FIND THAT ONCE THE ASSESSEE HAD GIVEN THE COPIES OF BA N K STATEMENT S , COPIES OF INCOME TAX RETURNS AND ALSO FILED CONFIRMATIONS OF THE CREDITORS WHEREIN NO DEFECT HAD BEEN POINTED OUT BY THE TAX AUTHORITIES, THE ADDITION RELYING UPON JUDICIAL PRECEDENCE IN DIFFERENT CASES WITHOUT FIRST ADDRESSING THE FACTUAL INADEQUACY OF ASSESSEE S EXPLANATION CANNOT BE SUSTAINED. ACCEPTING THE EXPLANATI ON OF THE ASSESSEE, T HE ADDITION IS DIRECTED TO BE DELETED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF ON 18 TH OCTOBER , 201 7 . SD/ - (DIVA SINGH) JUDICIAL MEMBER SH 3 ITA NO . 4394 /DEL/201 6 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR , ITAT NEW DELHI DATE 1. DRAFT DICTATE D ON 24.08.2017 PS 2. DRAFT PLACED BEFORE AUTHOR 11.10.2017 / 17.10.2017 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRO NOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 4 ITA NO . 4394 /DEL/201 6