ACIT, New Delhi V. Puneet MErcantiles & Credits (P) LTd., Delhi

ITA 51/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58898 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 07-03-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 05-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAMTA KOCHAR
• Assessee Lawyers: SURESH K GUPTA
• Keywords: Opportunity of being heard; Accommodation entries
• Section: 143(1); 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI RAJPAL YADAV AND SHRI SHAMIM YAHYA ITA NO. 51/DEL/2011 ASSESSMENT YEAR: 2002-03 ASSISTANT CIT, VS. PUNEET MERCANTILES & CREDITS CIRCLE 14(1), (P) LTD., B-156, PACHIM VR., NEW DELHI. DELHI. (PAN: AAACP0538K) (APPELLANT) (RESPONDENT) APPELLANT BY: SMT. MAMTA KO CHAR, SR.DR RESPONDENT BY: SHRI SURESH K. G UPTA, CA DATE OF HEARING : 07.03.2012 DATE OF PRONOUNCEMENT : 15.03.2012 ORDER PER RAJPAL YADAV: JUDICIAL MEMBER THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LEARNED CIT(APPEALS) DATED 11.10.2010 PASSED FOR ASSESSMENT YEAR 2002-03. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT LEARNED C IT(APPEALS) HAS ERRED IN DELETING THE ADDITION OF RS.50,07,000 WHICH WAS ADD ED BY THE ASSESSING OFFICER WITH THE AID OF SECTION 68 OF THE INCOME-TA X ACT, 1961. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED ITS RETURN OF INCOME ON 30.3.2003 DECLARING AN INCOME OF RS.43,40 0. THIS RETURN WAS PROCESSED UNDER SEC. 143(1) OF THE INCOME-TAX ACT, 1961 ON 25.5.2003 AT THE RETURNED INCOME. ACCORDING TO THE ASSESSING OFFICER , HE HAS RECEIVED 2 INFORMATION FROM THE DIRECTOR OF INCOME-TAX (INV.) EXHIBITING THAT ASSESSEE HAS RECEIVED ACCOMMODATION ENTRY/BOGUS SHARE APPLIC ATION MONEY/BOGUS CAPITAL GAIN FROM THE PERSONS WHO WERE INDULGED IN PROVIDING ACCOMMODATION ENTRIES. HE REOPENED THE ASSESSMENT A ND ISSUED A NOTICE UNDER SEC. 148 ON 30 TH MARCH 2009. THE ASSESSEE CONTENDED BEFORE THE ASSESSING OFFICER THAT IT HAS RECEIVED SHARE APPLIC ATION MONEY OF RS.64 LACS FROM VARIOUS PARTIES. IT HAS SUBMITTED THE DETAILS OF ALL THE SHARE APPLICANTS I.E. CONFIRMATION, NAME, ADDRESS, GIR/PAN ETC. ASSE SSING OFFICER HAS ALLEGED THAT DIRECTOR OF INCOME-TAX(INV.) HAS REMIT TED INFORMATION ABOUT THE RECEIPT OF FOLLOWING AMOUNTS FROM OTHER PARTIES:- NAME OF THE ACCOUNT HOLDER OF THE ENTRY GIVING ACCOUNT. INST5RUMENT NO. BY WHICH ENTRY TAKEN BY THE ASSESSEE DATE ON WHICH ENTRY TAKEN VALUE OF ENTRY TAKE SWETU STONE PVT. LTD. 25376 4/7/2001 1001000 CHINTPURNI CREDIT 14/8/2001 2003000 CHINTPURNI CREDIT 13/8/2001 2003000 TOTAL 5007000 3. ASSESSING OFFICER WITHOUT CONFRONTING THE ASSESS EE MADE THE ADDITION OF RS. 50,07,000. 3 4. BEFORE LEARNED CIT(APPEALS), ASSESSEE CONTENDED THAT ASSESSING OFFICER HAS NOT CONFRONTED THE ASSESSEE WITH REGARD TO THE INFORMATION RECEIVED FROM THE DIRECTOR OF INCOME-TAX (INV.) IT HAS NOT RECEIVED ANY SHARE APPLICATION MONEY FROM THE ENTITIES ALLEGED BY THE ASSESSING OFFICER. ASSESSING OFFICER DID NOT DOUBT ABOUT THE GENUINENE SS OF SHARE APPLICATION MONEY RECEIVED BY THE ASSESSEE AMOUNTING TO RS.64 L ACS FROM OTHER CONCERNS. LEARNED FIRST APPELLATE AUTHORITY HAS VER IFIED THIS CONTENTION AND DELETED THE ADDITION. THE RELEVANT OBSERVATIONS OF THE LEARNED FIRST APPELLATE AUTHORITY READ AS UNDER: IN RESPECT OF AMOUNT OF RS.50,07,000 ALLEGED TO HA VE BEEN RECEIVED FROM SWETU STONE (P) LTD. AND CHINTPURNI CREDITS, T HE APPELLANT CONTENDED BEFORE THE A.O. AS WELL AS BEFORE ME THAT THEY HAVE NOT RECEIVED ANY SHARE APPLICATION MONEY FROM THOSE TWO COMPANIES. THE A.O. DID NOT CONTRADICT THIS SUBMISSION OF THE APPE LLANT. THE A.O. DID NOT CONFRONT THE ASSESSEE COMPANY ABOUT THE INFORMA TION RECEIVED BY HIM FROM INVESTIGATION WING AND USED IT AGAINST THE ASSESSEE WITHOUT OPPORTUNITY OF BEING HEARD IN RESPECT OF MATERIAL I N HIS POSSESSION. THE A.O. DID NOT BRING ANY POSITIVE EVIDENCE ON THE RECORD TO ESTABLISH THAT THERE WAS ANY CREDIT IN THE BOOKS OF ACCOUNT OF THE ASSESSEE IN THE NAME OF M/S. SWETU STONE (P) LTD. A ND IN THE NAME OF M/S. CHINTPURNI CREDIT OR THAT THE APPELLANT HAS PA ID ANY MONEY TO THOSE TWO COMPANIES. CONSIDERING, THE ABOVE FACTS A ND JUDICIAL PRONOUNCEMENTS QUOTED BY THE APPELLANT, I AM OF THE CONSIDERED OPINION THAT THE A.O. WAS NOT JUSTIFIED IN MAKING T HE ADDITION ON 4 ACCOUNT OF SHARE APPLICATION MONEY ALLEGED TO HAVE BEEN RECEIVED FROM M/S. SWETU STONE (P) LTD. AND CHINTPURNI CREDI T. THEREFORE, THE ADDITION MADE BY THE A.O. IS HEREBY DELETED. THESE GROUNDS OF APPEAL ARE ALLOWED. 5. WITH THE ASSISTANCE OF LEARNED REPRESENTATIVES, WE HAVE GONE THROUGH THE RECORD CAREFULLY PLACED. THE REVENUE HAS NOT PL ACED ANY MATERIAL WHICH INDICATES THAT THE FINDINGS OF THE LEARNED CIT(APPE ALS) EXTRACTED SUPRA IS FACTUALLY INCORRECT. IF THE ASSESSEE HAS NOT TAKEN ANY SHARE APPLICATION MONEY FROM M/S. SWETU STONE PVT. LTD. AND CHINTPURINI CRE DITS THEN HOW AN ADDITION CAN BE MADE. CONSIDERING THE FINDINGS OF T HE LEARNED CIT(APPEALS), WE DO NOT SEE ANY REASON TO INTERFERE IN IT. ACCORDINGLY, APPEAL OF THE REVENUE IS REJECTED DECISION PRONOUNCED IN THE OPEN COURT ON 15.03.2 012 SD/- SD/- ( SHAMIM YAHYA ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15/03/2012 MOHAN LAL 5 COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR