Mrs. Sushila Chudiwala, CHENNAI V. ITO, Pondicherry

ITA 459/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64185 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 07-08-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 02-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: SEETHARAMAN
• Keywords: Unexplained cash credit
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.459/MDS/2012 (ASSESSMENT YEAR: 2007-08) MRS. SUSHILA CHUDIWALA, C/O. S.VENKATRAM & CO., CHARTERED ACCOUNTANTS, 218, TTK ROAD, CHENNAI-18. PAN:ALBPS4639K VS. THE INCOME TAX OFFICER, WARD-I(2), PONDICHERRY. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. SEETHARAMAN, C.A. RESPONDENT BY : MR. S.DA SGUPTA, JCIT DATE OF HEARING : 7 TH AUGUST, 2012 DATE OF PRONOUNCEMENT : 24 TH AUGUST, 2012 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN PREFERRED BY THE ASSESSEE IMPUGNING THE ORDER OF THE CIT(A)-XII, CHENNAI DATE D 18.01.2012. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF PLASTIC HANGERS UNDER THE NAME OF M/S. AURO POLYMERS. SHE FILED HER RETURN O F INCOME RELEVANT TO THE ASSESSMENT YEAR 2007-08 ON 30.10.20 07 ADMITTING TOTAL INCOME OF ` 2,68,430/-. THE CASE OF THE ITA NO. 459/MD S/2012 2 ASSESSEE WAS TAKEN UP FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) WAS ISSUED ON 2.9.2008. THE ASSESSING OFFICE R VIDE ASSESSMENT ORDER DATED 30.11.2009 COMPLETED THE ASSESSMENT AND MADE CERTAIN ADDITIONS/DISALLOWANCE S IN THE INCOME RETURNED BY THE ASSESSEE AND RAISED DEMAND O F ` 12,22,215/- INCLUDING INTEREST UNDER SECTION 234B & 234C OF THE INCOME TAX ACT, 1961. THE ASSESSING OFFICER A DDED AN AMOUNT OF ` 26,73,308/- AS UNEXPLAINED CASH CREDIT UNDER SECTION 68, CERTAIN EXPENSES INCURRED BY THE ASSESS EE AND DEBITED TO PROFIT AND LOSS ACCOUNT TO THE EXTENT OF 1/4 TH OF SAID EXPENSES AMOUNTING TO ` 67,620/- WERE TREATED AS PERSONAL EXPENSES. AGGRIEVED AGAINST THE ASSESSMENT ORDER, THE ASSESS EE PREFERRED AN APPEAL BEFORE THE CIT(A). THE CIT(A) V IDE ORDER DATED 18.1.2012 DISMISSED THE APPEAL OF THE ASSESSE E. NOW, THE ASSESSEE HAS COME IN SECOND APPEAL BEFORE THE T RIBUNAL ASSAILING THE ORDER OF THE CIT(A). 3. SHRI SEETHARAMAN, APPEARING ON BEHALF OF THE ASS ESSEE SUBMITTED THAT SUFFICIENT OPPORTUNITY TO PRODUCE EV IDENCE WAS NOT AFFORDED TO THE ASSESSEE BY THE CIT(A). THE ASS ESSEE IS ITA NO. 459/MD S/2012 3 IN POSSESSION OF DOCUMENTS TO SHOW THAT THE AMOUNT OF ` 26,73,308/- IS NOT UNEXPLAINED CASH CREDITS, IN FAC T, THE AMOUNTS HAVE ACTUALLY BE PAID TO THE CREDITORS. T HE A.R. SUBMITTED THAT THE LOANS AS ALSO REPAYMENTS/INTERES TS ARE MADE BY WAY OF CROSSED CHEQUES. ALL THE CREDITORS A RE INCOME TAX ASSESSEES AND HAVE PAN. HE CONTENDED THAT IF GI VEN AN OPPORTUNITY THE ASSESSEE CAN PRODUCE EVIDENCE TO SH OW THE GENUINENESS OF THE TRANSACTIONS. IN ORDER TO SUPP ORT HIS CONTENTIONS, THE A.R. RELIED ON THE JUDGEMENT OF TH E HONBLE SUPREME COURT OF INDIA IN THE CASE OF TIN BOX CO. V S. CIT., REPORTED AS 116 TAXMAN 491(SC). 4. ON THE OTHER HAND, SHRI S.DASGUPTA REPRESENTING THE DEPARTMENT STRONGLY SUPPORTED THE ORDER PASSED BY T HE CIT(A) AND SUBMITTED THAT AMPLE OPPORTUNITY WAS AFF ORDED TO THE ASSESSEE TO PRODUCE DOCUMENTS. THE ASSESSEE FAI LED TO PRODUCE THE DOCUMENTS BEFORE THE ASSESSING OFFICER AS WELL AS THE CIT(A). 5. WE HAVE HEARD THE SUBMISSIONS MADE BY THE RESPEC TIVE PARTIES. AS PER THE CONTENTIONS OF THE A.R., THE AS SESSEE HAD GIVEN THE DETAILS OF THE CREDITORS VIZ., PAN, ASSES SMENT ITA NO. 459/MD S/2012 4 RECORD, FULL ADDRESS AND DETAILS OF THE PAYMENTS ET C. BUT WERE NOT TAKEN INTO CONSIDERATION BY THE CIT(A). WE DEEM IT APPROPRIATE TO REMIT THE MATTER BACK TO THE CIT(A) TO GRANT AN OPPORTUNITY TO THE ASSESSEE TO PRODUCE RELEVANT DOCUMENTS/RECORDS TO SHOW GENUINENESS OF THE TRANSA CTION IN SUPPORT OF HER CASE. WITHOUT GOING INTO THE MERITS OF THE CASE, IN THE INTEREST OF JUSTICE, WE REMIT THE FIL E TO THE CIT(A) TO DECIDE THE MATTER AFRESH AFTER VERIFYING THE VER ACITY OF THE EVIDENCE FURNISHED. 6. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY, TH E 24 TH DAY OF AUGUST, 2012 AT CHENNAI. SD/- SD/- ( N.S.SAINI ) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUD ICIAL MEMBER CHENNAI, DATED THE 24 TH AUGUST, 2012. SOMU COPY TO: (1) APPELLANT (4) CIT(A) (2) RESPONDENT (5) D.R. (3) CIT (6) G.F.