Mr. Gurmukh Singh Bali, New Delhi V. JCIT, New Delhi

ITA 4762/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7068 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 3
• Next Hearing Date: 27-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 01-09-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJAN
• Section: 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 3 , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 4 7 6 2 /DEL/201 4 AY: 20 10 - 11 SH. GURUMUKH SINGH BALI VS. JCIT, RANGE 30 A 61, LOK VIHAR NEW DELHI PITAMPURA NEW DELHI 110 034 PAN: AAFPB 6283 K (APPELLANT) (RESPONDENT) APPELLANT BY : SH.DEEPAK GARG, C.A. SH. SUMIT B NAGPAL, C.A. RESPONDENT BY : SH. P.DAM KANUNJAN, SR.D.R ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF I NCOME T AX (A PPEALS ) - X X V, NEW DELHI PERTAINING TO THE A.Y. 20 10 - 11 DATED 3.6.2014. 2. T HE ONLY ISSUE FOR OUR CONSIDERATION IS THE ADDITION MADE UNDER SECTION 68 OF THE I NCOME T AX A CT , 1961 (THE ACT) . 3. O N A CAREFUL CONSIDERATION OF RIVAL CONTENTIONS I FIND THAT IN THE CASE OF M /S FRIENDS ALLOYS, M/S DEE PEARLS P LTD. AND VARDHAMAN I NDUSTRIES, THE CREDITS ARE NOT PERTAINING TO THIS YEAR. THESE AMOUNTS ARE OPENING BALANCES CARRIED FORWARD FROM THE P REVIOUS Y EAR . HENCE NO ADDITION CAN BE MADE DURING THIS YEAR. ANYHOW, KEEPING IN VIEW THE SUBMISSIONS OF THE LD. SR.D.R. WE SET ASIDE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION. IN CASE THESE CREDITS ARE CLOSING BALANCES OF THE EARLIER FINANCIAL YEAR, NO ADDITION CAN BE MADE DURING THE YEAR. 2 4. AS REGARDS THE CREDITS IN THE NAME OF M/S SEASONS FURNISHING, M/S COSYCO INTERNATIONAL, M/S CHARNOCK AUTO PRODUCT , THE LD. C OUNSEL FOR THE ASSESSEE SUBMITS THAT FIXED ASSETS WERE PURCHASED AND THE SE CREDITS W ERE OUTSTANDING ON SUCH PURCHASES AND THAT THE SAME WERE REPAID IN THE IMMEDIATELY SUCCEEDING A SSESSMENT Y EAR. WHEN FIXED ASSETS ARE PURCHASED ON CREDIT AND WHEN THE PURCHASE HAS BEEN ACCEPTED, NO ADDITION CAN BE MADE UNDER SECTION 68 OF T HE A CT. ANYHOW I SET ASIDE THIS ISSUE TO THE FILE OF THE AO WITH A CLEAR DIRECTION THAT NO ADDITION CAN BE MADE UNDER SECTION 68, IF THESE CREDITS HAVE ARISE S DUE TO CREDIT PURCHASES OF FIXED ASSETS. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. P RONOUNCED IN THE OPEN COURT ON 29 TH JUNE, 2016 . SD/ - (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 29 TH JUNE, 2016 *MANGA 3 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR