M/S SWASTIK SPINTEX LTD., Indore V. THE ACIT 3(1), Indore

ITA 511/IND/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5833 (ITAT-INDORE)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 13-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESHPANDE
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

M/S SWASTIK SPINTEX LTD. ITA NO. 511/IND/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JM & SHRI O.P. MEENA, AM ITA NO. 511/IND/2016 A.Y.2004-05 M/S SWASTIK SPINTEX LTD. INDORE PAN AACCS 4387F ::: APPELLANT VS ACIT 3(1) INDORE ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI MOHD.JAVED DATE OF HEARING 17..8.2016 DATE OF PRONOUNCEMENT 1 7 .8.2016 O R D E R PER SHRI D.T. GARASIA, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 29.1.2 016. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE FIL ED THE RETURN OF INCOME. THE ASSESSEE IS ENGAGED IN THE M/S SWASTIK SPINTEX LTD. ITA NO. 511/IND/2016 2 BUSINESS OF MANUFACTURING COTTON YARN. THE ASSESSEE RECEIVED THE LOAN FROM VARIOUS PERSONS AS UNDER :- NAMEOF THE COMPANY F.Y.2002 - 03 F.Y.2003 - 04 REMARKS TRIMURTI FINVEST PVT. LTD. 5,00,000 10,00,000 OUT OF RS.10 LACS, RS. 5 LACS REPAID LUNKAD SECURITIES LTD. 5 ,00,000 5,00,000 PURVI FINVEST LTD. 5,00,000 NIL ALPINE AGROTECH LTD. NIL 5,00,000 THE ASSESSING OFFICER ASKED THE ASSESSEE TO PRODUCE T HE CREDITORS BUT THE ASSESSEE DID NOT PRODUCE. THEREFOR E, THE ASSESSING OFFICER MADE THE ADDITION U/S 68 OF THE ACT . ON APPEAL, THE LEARNED CIT(A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. NOW THE ASSESSEE IS IN APPEAL B EFORE THE TRIBUNAL. 3. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE FAIRLY SUBMITTED BEFORE US THAT THE ASSESS EE RECEIVED RS. 5 LACS FROM LUNKAD SECURITIES LTD. AND PU RVI M/S SWASTIK SPINTEX LTD. ITA NO. 511/IND/2016 3 FINVEST LTD. THIS PARTY DID NOT COOPERATE AND THE ASSES SEE WILL NOT BE ABLE TO PRODUCE THIS PARTY, THEREFORE, ADD ITION MAY BE CONFIRMED. THE LEARNED COUNSEL FOR THE ASSESSE E SUBMITTED THAT TRIMURTI FINVEST PVT. LTD. IS A PARTY FROM BILASPUR AND THEIR ASSESSMENT ORDER HAS BEEN CONFIRMED AND THE ASSESSEE WILL BE ABLE TO PRODUCE THE SAME BEFOR E THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE ASSESSEE ALSO SUBMITTED THAT THIS PARTY HAD MADE THE TRANSACTION WITH LUNKAD SECURITIES LTD. AND THE ASSESSEE HAS CARRIE D OUT THE GENUINE TRANSACTION WITH THE ABOVE PARTY. THEREFORE, THE MATTER MAY BE RESTORED TO THE ASSESSI NG OFFICER FOR VERIFICATION. WE, THEREFORE, IN THE INTE REST OF JUSTICE AND EQUITY, SET ASIDE THE ORDERS OF THE AUTHOR ITIES BELOW AND RESTORE THE MATTER TO THE FILE OF THE ASSES SING OFFICER WITH THE DIRECTION THAT IF THE ASSESSEE WANTE D TO PRODUCE THE ABOVE PARTY, HE MAY BE ALLOWED TO DO SO AND THEREAFTER THE ASSESSING OFFICER SHALL EXAMINE THE SAI D M/S SWASTIK SPINTEX LTD. ITA NO. 511/IND/2016 4 PARTY AND MAKING THE ASSESSMENT DE NO ACCORDINGLY, AFTER PROVIDING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 3. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 17 AUGUST, 2016 SD SD (O.P. MEENA) (D.T. G ARASIA) ACCOUNTANTMEMBER JUDICIAL MEMB ER 17 AUGUST, 2016 DN/- M/S SWASTIK SPINTEX LTD. ITA NO. 511/IND/2016 5