ITO, New Delhi V. M/s. N.D. Distributors Pvt. Ltd., New Delhi

ITA 5078/DEL/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90893 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 16-03-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 14-11-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJHA
• Keywords: Unexplained cash credit; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO. .. .5078/DEL/2011 5078/DEL/2011 5078/DEL/2011 5078/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2007 2007 2007 2007- -- -08 0808 08 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -13(1), 13(1), 13(1), 13(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S N.D. DI M/S N.D. DI M/S N.D. DI M/S N.D. DISTRIBUTORS PVT.LTD., STRIBUTORS PVT.LTD., STRIBUTORS PVT.LTD., STRIBUTORS PVT.LTD., B BB B- -- -10, UTTAM NAGAR, 10, UTTAM NAGAR, 10, UTTAM NAGAR, 10, UTTAM NAGAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 059. 110 059. 110 059. 110 059. PAN : AABCN8411E. PAN : AABCN8411E. PAN : AABCN8411E. PAN : AABCN8411E. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P. DAM KANUNJHA, SR.DR. RESPONDENT BY : NONE. DATE OF HEARING : 16.03.2015 16.03.2015 16.03.2015 16.03.2015 DATE OF PRONOUNCEMENT : 01.04.2015 01.04.2015 01.04.2015 01.04.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2007-08 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVI, N EW DELHI DATED 14 TH JULY, 2011. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AND THER EFORE, THE APPEAL OF THE REVENUE IS BEING DECIDED EX PARTE QUA THE ASSESSEE- RESPONDENT ON MERITS AFTER HEARING THE LEARNED DR. 3. THE GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDE R:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN ADMITTING THE ADDITIONAL EVI DENCE IN THE FORM OF COPIES OF BALANCE-SHEET FOR ASSESSME NT YEARS 2006-07 AND 2007-08. ITA-5078/DEL/2011 2 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN ACCEPTING THE SUBMISSIONS OF THE ASSESSEE ON THE BASIS OF ABOVE ADDITIONAL EVIDENCE THAT THE SHARE APPLICATION MONEY OF RS.1,30,00,000/- WAS CLUBBED IN THE AMOUNT OF RS.3,57,55,396/- SHOWN UND ER THE HEAD CURRENT LIABILITIES FOR ASSESSMENT YEAR 20 06- 07. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN ACCEPTING THE SUBMISSION OF THE ASSESSEE ON THE BASIS OF THE ABOVE ADDITIONAL EVIDE NCE THAT THE SUNDRY CREDITORS OF RS.1,96,29,274/- OUTSTANDING AS ON 31.3.2007 DID NOT RELATE ASSESSME NT YEAR 2007-08. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN NOT ONLY ACCEPTING THE ABOVE ADDITIONAL EVIDENCE WITHOUT PROVIDING AN OPPORTUNIT Y TO THE A.O. TO EXAMINE AND VERIFY THE SAME BUT ALSO DELETING THE ADDITION OF RS.1,30,00,000/- MADE U/S 68 OF THE I.T. ACT ON ACCOUNT OF UNEXPLAINED CREDITS INTRODUCED IN THE GARB OF SHARES APPLICATION MONEY AND ALSO ADDITION OF RS.1,96,29,274/- MADE U/S 68 ON ACCOUNT OF UNEXPLAINED SUNDRY CREDITORS. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS FAILED TO APPRECIATE THE FACTS DISCUS SED IN DETAIL IN THE ASSESSMENT ORDER AND REMAND REPORT. 4. LEARNED DR SUBMITTED THAT THE ADDITIONAL EVIDENC E IN THE FORM OF COPY OF BALANCE SHEET AND OTHER DOCUMENTS WERE ADMI TTED BY THE LEARNED CIT(A) IN VIOLATION OF THE STATUTORY PROVIS ION RELATING TO ADMISSION OF ADDITIONAL EVIDENCE BY HIM AND, THEREF ORE, THE ORDER OF THE LEARNED CIT(A) SHOULD BE SET ASIDE. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF LEARNED DR AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE CIT(A). WE FIND THAT IN THE FACTS OF THE CASE, THERE SEEMS TO BE A VIOLA TION OF THE PROVISIONS OF RULES IN ADMITTING THE ADDITIONAL EVIDENCE PREFE RRED BY THE ASSESSEE AND, FOR WHICH, A SUFFICIENT OPPORTUNITY SHOULD HAV E BEEN PROVIDED TO ITA-5078/DEL/2011 3 THE ASSESSING OFFICER AND REMAND REPORT SHOULD ALSO HAVE BEEN CONSIDERED AS PER LAW. IN THESE FACTS, WE ARE OF T HE VIEW THAT IT SHALL BE IN THE INTEREST OF JUSTICE TO SET ASIDE THE ORDE RS OF THE ASSESSING OFFICER AND THE CIT(A) TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO PASS A DE NOVO ASSESSMENT ORDER IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING T O THE ASSESSEE. THE ASSESSEE SHALL BE AT LIBERTY TO FILE ANY EVIDENCE I N SUPPORT OF ITS CASE. THE ASSESSEE IS FURTHER DIRECTED TO COOPERATE WITH THE DEPARTMENT WITH REGARD TO FINALIZATION OF ASSESSMENT. WE DIRECT AC CORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 1 ST APRIL, 2015. SD/- SD/- ( (( (T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR) )) ) (G. (G. (G. (G.C. GUPTA C. GUPTA C. GUPTA C. GUPTA) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 2. RESPONDENT : M/S N.D. DISTRIBUTORS PVT.LTD., M/S N.D. DISTRIBUTORS PVT.LTD., M/S N.D. DISTRIBUTORS PVT.LTD., M/S N.D. DISTRIBUTORS PVT.LTD., B BB B- -- -10, UTTAM NAGAR, NEW DELHI 10, UTTAM NAGAR, NEW DELHI 10, UTTAM NAGAR, NEW DELHI 10, UTTAM NAGAR, NEW DELHI 110 059. 110 059. 110 059. 110 059. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR