Rathi Steel (Dakshin)Ltd., New Delhi V. DCIT,Circle-8(1), New Delhi

ITA 4650/DEL/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9279 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 17-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.4650/DEL/2017 Assessment Year 2012-13 Shri Rathi Steel (Dakshin) Ltd. J-1/202, DDA Flats, Kalkaji, New Delhi. Deputy Commissioner of Income Tax, Circle-8(1), New Delhi. TAN/PAN: AAACB1192M (Appellant) (Respondent) Appellant by: Shri Ved Jain, CA Shri Ashish Goel, Adv. Respondent by: Shri Abhishek Kumar, Sr.DR Date of hearing: 31 05 2022 Date of pronouncement: 08 06 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een fil ed b y th e Assessee ag ain st th e o rd er o f th e Co mmiss io n er o f In co me Tax (Ap peals)-XXII, New Delh i (‘CIT( A)’ in sh o rt) d ate d 2 5 .0 5 .2 01 7 arisi n g fro m th e assess men t o rd er d ated 0 1 .0 9 .20 14 p assed by th e Assessin g Officer (AO) u n d er Sect io n 1 4 3 (3 ) r.w.s. 1 4 7 o f th e In co me Tax Act, 1 9 6 1 (th e Act ) co n cern in g AY 20 1 2 -1 3 . 2 . As p er its g ro u nd s o f ap p eal, th e asse ssee h as ch allen g e d th e d isal lo wan ce o f R s.1 8 ,4 9 ,5 4 9 /- by th e Assessin g Offi cer al leg in g th e c lan d est in e re mo v al o f g o o d s ma n u factu red , i. e., in g o ts. 3 . We h av e h eard t h e riv al su b miss i o n s. To ad ju d icat e th i s issu e in d isp u te , fe w relev an t fact s ar e n o ted as un d er. I.T.A. No.4650/Del/2017 2 3 .1 Th e assessee-co mp an y is eng ag ed in th e bu sin ess o f man u fa ctu rin g an d trad in g o f iro n an d steel b ar fo r th e Assessmen t Year 2 0 12 -13 un d er co n sid eratio n . Th e assesse e fi led i ts retu rn o f in co me d ec lar in g to ta l in co me p e g g ed at Rs.2 ,7 7 ,3 9 ,1 2 0 /-. A Cen tral Ex c ise De p artmen t search was co n d u cted at th e p remise s o f M /s. Ra may an a Isp at L td . ( man u factu rer o f MS /SS In g o ts) on 3 1 .0 7 .20 1 2 . Du ring th e search , th e au th o ritie s al leg ed th at th ey h av e fo u n d so me lo o se p ap ers which in d ica ted th e clan d est in e remo v al o f g o o d s to th e asses see-c o mp an y b y th e supp lier M/s . Ramay an a Isp at Ltd . Th e Cen tral Ex cise Au th o riti es o b tain ed ad v erse sta te men t fro m th e d ire cto r o f th e asses see wh erein th e d irecto r h as ad mit ted th e receip t o f g o od s with o u t reco rd in g th e same in th e b o ok s o f acco u n t an d th e d irecto r o f the co mp an y also ag reed to d ep o sit t h e cen tral ex cis e d u ty o n th e receip t o f g o o d s. Th e Directo r h o wev er la ter re trac te d fro m th e s tat emen t o n th e g ro un d o f co ercio n an d du ress an d also ab sen ce o f ev id en ce to su p po rt th e al leg a t io n o f ev asio n o f ex cise d u ty . No twi th stan d in g th e retrac tio n , th e assessee h o wev er d ep o sited th e al le g ed ex cise d u ty with th e Ex c ise Dep art men t. In th e In co me T ax assess men t p ro ceed in g s, th e Assessin g Offic er to o k cog n izan ce o f t h e fac tu al b ack d rop emerg ed as n o ted ab o v e an d mad e an a d d ition o f Rs.1 8 ,4 9 ,5 4 9 /- to ward s u n reco rd ed alleg ed p u rch ases. T h e CIT(A) d eclin ed to in t erfe re with th e a fo res aid fin d in g o f th e Assessin g Officer in th e first ap p eal. 4 . With th e assis tan c e o f th e ld . co u n sel fo r th e asses see , we o b serv e th at; (i) the a ss es see h as s h ow n a t ur no ve r i n t he vi ci ni t y of R s. 4 37. 52 cro re an d t hu s t he a mou nt of all eg ed eva si on is ne gl ig ib le a nd is pla us ib l y a matt er of re co nci li at io n. I.T.A. No.4650/Del/2017 3 (ii ) th e bo ok s of a cco un t of th e as ses see w er e not r eje ct ed b y the I nc o me Ta x Aut hor it ie s, (ii i) the re is no i nde p end en t mat er ia l w ith th e As se ssi ng Of f icer to s up por t t he all eg at io n of un acc ou nt ed purc ha se s e xc ept the i nf or mat io n r ec eiv ed f ro m C en tr al Ex ci se De pa rtme n t w hi ch , in t ur n, h ea vi l y d epe nd s u po n t he ret ra cte d s ta te men t of the dir ec to r of th e ass e sse e- co mp an y. (iv ) the a ss es see c on te nd s t ha t no ca sh p a ymen t is i nv olv ed and th e as se ss ee is e ng ag ed i n t ra nsa ct io n w it h th e sup pl ie r sea ml es sl y f or a l o ng ti me . 5. In t hi s b ac kd ro p, we ob ser ve th at th e ad di ti on it se lf c arr ie s tra pp in g of d ou bt s and so me w hat ap pea rs to be in the rea l m of con te mp la ti on . Th us, we f in d me r it i n th e al ter na tiv e pl ea pro pa ga te d on be ha lf of the as se ss ee t hat a d dit io n, if an y, sh ou ld b e res tr ict ed to t he p rof it el e men t i nv ol ved i n t he tra ns ac tio n r at he r tha n ad di ti on s of w hol e a mou nt . In th e l ig ht of t he s ta te me nt of t he dir ec to r of the a ss e sse e co nf ess in g ex i ste nc e of tran sac ti o n i ni tia ll y alt ho ug h re tra ct ed lat er , the a dd it io n to war ds p rofi t in t he al le ge d tra ns ac tio n wh ic h i s s ta ted t o b e Rs .1 ,41 ,7 37 /- , w ou ld b e j us t a nd pro pe r a nd wi ll ba lan ce th e t ot ali t y of the ci rc u mst an c es i n r ig ht per sp ec ti ve. W e th us mo d if y t he o rd er of t he C IT (A ) an d res tr ict t he add it io n to th e ex te nt of p rof it e le me nt i. e. , Rs. 1, 41 ,7 37 /- onl y. 6. In th e res ul t, t he ap pea l of th e as se ss ee is p artl y a ll ow ed . Order pronounced in the open Court on 08/06/2022. Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2022 Prabhat