Brijlaxmi Infotech Limited, Baroda V. The Dy.CIT.,Circle-1(1), Baroda

ITA 511/AHD/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67544 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 01-08-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 15-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS
• Assessee Lawyers: M K PATEL
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER BRIJLAXMI INFOTECH LTD 204-05, STERLING CENTER, 2 ND FLOOR, RC DUTT ROAD, ALKAPURI, BARODA-390007 (APPELLANT) VS THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1(1), BARODA IST FLOOR, AAYAKAR BHAVAN, RACE COURSE, BARODA-390007 (RESPONDENT) REVENUE BY: SRI K.C. MATHEWS, SR.D.R. ASSESSEE BY: SRI M.K.PATEL, A.R. DATE OF HEARING : 01-08-2013 DATE OF PRONOUNCEMENT : 08-08-20 13 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A),-I BARODA DATED 10-11-2009. ITA NO. 511/AHD/2010 ASSESSMENT YEAR 2005-06 I.T.A NO. 511/AHD/2010 A.Y. 2005-06 PAGE NO BRIJLAXMI INFOTECH LTD VS. DY CIT 2 2. THE ASSESSEE IS AGGRIEVED IN THIS APPEAL BY THE ACTION OF LD. CIT(A) IN CONFIRMING THE ADDITION MADE U/S 68 OF THE ACT TO T HE EXTENT OF RS. 6,05,000/- 3. DURING THE ASSESSMENT PROCEEDINGS ASSESSING OFFI CER OBSERVED THAT ASSESSEE HAD ACCEPTED FOLLOWING NEW DEPOSITS DURING THE YEAR UNDER APPEAL. SR. NO. NAME OF THE PARTY AMOUNT(RS.) 1. J.K. CHATURVEDI, HUF RS. 14,700/- 2. SHYAM INFO SOLUTION PDF RS. 7,55,000/- ------ -------------- RS. 7, 69,700/- ------ -------------- SINCE NO CONFIRMATION, PAN, COPY OF ACKNOWLEDGMENT OF RETURN OF INCOME WERE FILED TO SHOW THE IDENTITY AND CREDITWORTHINES S OF THE CREDITORS AND GENUINENESS OF THE TRANSACTIONS IN RESPECT OF THE A BOVE SUM OF RS. 7,69,700/- THE SAME WAS DISALLOWED BY THE AO AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. BEFORE LD. CIT(A) IN RESPECT OF M/S J K CHATURVEDI, HUF, IT WAS SUBMITTED THAT RS. 14,700/- WAS OPENING BALANCE AND THERE WAS NO NEW CREDIT DURING THE YEAR. IN THE CASE OF SHYAM INFO SOLUTION, OUT OF CLOSING BALANCE OF RS. 7,55,000/-, RS. 1,50,000/- REPRESEN TED THE OPENING BALANCE AND THE REMAINING OF RS. 6,05000/- WAS RECEIVED DUR ING THE YEAR BY WAY OF UNSECURED LOANS. LD. CIT(A) HELD THAT OPENING BAL ANCES OF RS. 14,700/- IN THE CASE OF M/S J.K. CHATURVEDI HUF AND 1,50,000/- IN THE CASE OF SHYAM INFO SOLUTIONS CANNOT BE SAID TO BE CREDITS APPEARI NG IN THE BOOKS OF I.T.A NO. 511/AHD/2010 A.Y. 2005-06 PAGE NO BRIJLAXMI INFOTECH LTD VS. DY CIT 3 ACCOUNTS DURING THE YEAR AND TO THAT EXTENT ADDITIO N WAS DELETED. HOWEVER SINCE IN RESPECT OF BALANCE AMOUNT OF RS. 6,05,000 /- NO CONFIRMATION WAS FILED BY THE ASSESSEE EVEN BEFORE HIM NOR ANY OTHER EVIDENCE WAS BROUGHT ON RECORD TO SHOW THE IDENTITY AND CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS OF THE TRANSACTIONS, ADDITION WAS CONFI RMED TO THE EXTENT OF RS. 6,0,5,000/-. 4. BEFORE US CONFIRMATION OF M/S SHYAM INFO SOLUTIO N WAS FILED BY THE LEARNED COUNSEL OF THE ASSESSEE AND IT WAS PRAYED T HAT THE MATTER MAY KINDLY BE RESTORED BACK TO THE FILE OF AO FOR ASCERTAINING THE IDENTITY AND CREDITWORTHINESS OF THE CREDITOR AND GENUINENESS OF THE TRANSACTIONS. LD. DR HOWEVER OPPOSED THIS REQUEST OF THE LEARNED COUNSEL OF THE ASSESSEE AND SUBMITTED THAT ORDER PASSED BY LD. CIT(A) MAY KINDL Y BE UPHELD. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE FIND THAT THE ADDITION U/S 68 OF THE ACT WAS MADE BY AO SIMPLY BE CAUSE NO CONFIRMATION IN RESPECT OF THE CREDITS WAS FILED BEFORE HIM. LD . CIT(A) CONFIRMED THE ADDITION TO THE EXTENT OF RS. 6,05,000/- ONLY DUE T O THE REASON THAT ASSESSEE COULD NOT FILE CONFIRMATION FROM THE CREDITOR. SIN CE NOW ASSESSEE HAS BEEN ABLE TO FILE THE SAME IN WHICH PAN OF THE CREDITOR IS ALSO MENTIONED, WE ARE INCLINED TO ACCEPT THE PRAYER OF THE LEANED COUNSEL OF THE ASSESSEE THAT THE MATTER REQUIRES FRESH ADJUDICATION ON THE PART OF T HE AO IN THE LIGHT OF THE THIS CONFIRMATION. THE ASSESSING OFFICER WILL BE FREE TO MAKE INQUIRY ABOUT THE IDENTITY AND CREDITWORTHINESS OF THE CREDITOR A ND GENUINENESS OF THE TRANSACTION. I.T.A NO. 511/AHD/2010 A.Y. 2005-06 PAGE NO BRIJLAXMI INFOTECH LTD VS. DY CIT 4 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 08/08/2013 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,