M/s. Embee Healthcare Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 5250/DEL/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6608 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 29-11-2016
• Assessment Year: 2013-2014
• Appeal Filed On: 05-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMANJANEYULU
• Assessee Lawyers: S K GUPTA
• Keywords: Opportunity of being heard
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SM C - I , NEW DELHI BEFORE SH. N. K. SAINI, A CCOUNTANT M EMBER ITA NO. 5250 /DEL/2016 : ASSTT. YEAR : 2013 - 1 4 M/S EMBEE HEALTHCARE PVT. LTD., 235, SANT NAGAR, EAS T OF KAILASH, NEW DELHI - 110065 VS INCOME TAX OFFICER, WARD - 8 ( 2 ) , NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A A ACE8992Q ASSESSEE BY : SH. S. K. GUPTA, CA REVENUE BY : SH. RAMANJANEYULU , SR. DR DATE OF HEARING : 29 .11 .201 6 DATE OF PRONOUNCEMENT : 30 . 11 .201 6 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 14.03.2016 OF LD. CIT(A) - 37, NEW DELHI. 2. THE ONLY EFFECTIVE GROUND RAISED IN THIS APPEAL READS AS UNDER: THAT ON THE FACT AND IN THE CI RCUMSTANCES OF THE CASE CIT(APPEALS) - 37, NEW DELHI WAS NOT JUSTIFIED IN CONFIRMING THE PURCHASE RETURN OF RS.166309/ - AS SHOWN IN THE PARTY (M/S ACCUREX BIOMEDICALS PVT. LTD.) THAT WAS ADDED IN TOTAL INCOME BY THE LD. ITO IGNORING THE CHECKING OF RETURN AD VICE ETC. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 27.09.2013 DECLARING AN INCOME OF RS.6,65,591/ - . SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO IN ORDER TO VERIFY THE PURCHASES/SALES ITA NO. 5250 /DEL /201 6 EMBEE HEALTHCARE PVT. LTD. 2 ISSUED NOTICES U/S 133(6) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) TO THE VARIOUS PARTIES WHICH REMAINED UNCOM PLIED WITH. THE AO NOTICED THA T THE ASSESSEE HAD MADE PURCHASES OF RS.5,6 0,085/ - FROM M/S ACCU REX BIOMED ICALS PVT. LTD. WHO FURNISHED COPY OF LEDGER ACCOUNT WHICH REFLECTED SALES RETURN AMOUNTING TO RS.1,66,309/ - . ACCORDING TO THE AO, THE ASSESSEE HAD NOT REDUCED THE PURCHASES RETURN ED IN RESPECT OF THIS PARTY . HE, THEREFORE, MADE THE ADDITION OF R S.1,66,309/ - . 4. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) AND FURNISHED THE DETAILS OF CREDIT NOTE AND CHALLANS OF SALES RETURN ED . HOWEVER, THE LD. CIT(A) HELD THAT THE SAID ADDITION HAD BEEN VALIDI T Y MADE BY THE AO AND SUSTAINED THE ADDITION. 5. NOW THE ASSESSEE IS IN APPEAL. THE LD. COUNSEL FOR THE ASSESSEE FURNISHED A CHA RT IN RESPECT OF PURCHASE RETURN ED , CREDIT NOTES AND THE ENTRIES MADE IN THE BOOKS OF ACCOUNT AND SUBMITTED THAT NEITHER THE AO NOR THE LD. CIT(A) APPRECIATED THE FACT IN RIGHT PERSPECTIVE. THEREFORE, NO ADDITION WAS CALLED FOR , PARTICULARLY WHEN THE ASSESSEE HAD ALREADY ACCOUNTED FOR THE PURCHASES RETURN ED IN ITS BOOKS OF ACCOUNT. 6. IN HIS RIVAL SUBMISSIONS THE LD. DR SUPPORTED THE ORDER OF THE AUTHORITIES BE LOW. ITA NO. 5250 /DEL /201 6 EMBEE HEALTHCARE PVT. LTD. 3 7. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT APPEARS THAT THE CHART NOW FURNISHED BY THE ASSESSEE WAS NOT AVAILA BLE TO THE AO OR THE LD. CIT(A) FOR T HEIR CONSIDERATION. AT THE SAME TIME, THE CLAIM OF THE ASSESSEE THAT THE PURCHASE S RETURNED HAD ALREADY BEEN ACCOUNTED FOR IN THE BOOKS OF ACCOUNT NEEDS VERIFICATION AT THE LEVEL OF THE AO. THEREFORE, TO MEET THE ENDS OF JUSTICE, THIS ISSUE IS SET ASIDE TO THE FILE OF THE AO TO BE DECIDED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . (ORDER PRON OUNCED IN THE CO URT ON 30 /11 /2016) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 30 /11 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELLA NT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR