ITO, New Delhi V. M/s. Baba Alloys Pvt. Ltd., Uttar Pradesh

ITA 5533/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65438 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-09-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 09-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIRTHI LAL
• Keywords: Charitable institution; Accommodation entries; Assessment record
• Section: 12A; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: A NEW DELHI BEFORE SHRI AD JAIN, JM AND SHRI J.SUDHAKAR REDDY, A.M. ITA NO: 5533/DEL/2011 ASSESSMENT YEAR : - 2003-04 ITO, WARD 2(3) VS. M/S BABA ALLOYS P.LTD. NEW DELHI HOSPITAL ROAD, DT.MUZAFFARNAGAR SHAMLI (UP) 247 776 PAN: : AACCB 7392 N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PIRTHILAL, SR.D.R. RESPONDENT BY : SHRI K.SAMPATH, ADV. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGA INST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-V, NEW DEL HI DT. 19.9.2011 PERTAINING TO THE ASSESSMENT YEAR 2003-04 ON THE F OLLOWING GROUNDS. 1.(A) THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING THE ADDITION OF RS.48,48,000/- MADE ON ACCOUNT OF UNEXPLAINED CR EDITS UNDER SECTION 68 OF THE INCOME TAX ACT, 1961. (B) THE LD.CIT(A) HAS IGNORED THE FACT THAT M/S MKM FINSEC P.LTD. IN WHOSE NAME THE AMOUNT OF RS.48,48,000/- IS CREDITED IN AS SESSEES BOOKS OF ACCOUNTS HAVE ALREADY ACCEPTED THE FACT THAT THEY W ERE IN INDULGING GIVING ACCOMMODATION ENTRIES IN LIEU OF CASH. 2. WE HAVE HEARD MR.PIRTHI LAL, SR.D.R. ON BEHALF O F THE REVENUE AND SHRI K.SAMPATH, LD.COUNSEL ON BEHALF OF THE ASSESSE E. 3. ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRC UMSTANCES OF THE CASE AND ON PERUSAL OF THE PAPERS ON RECORD, WE UPH OLD THE ORDER OF THE FIRST APPELLATE AUTHORITY ON THE GROUND THAT, THE A MOUNT IN QUESTION HAS BEEN REPORTED AS INCOME BY THE ASSESSEE IN ITS PROF IT AND LOSS A/C. ONCE THE AMOUNT HAS BEEN DISCLOSED AS A REVENUE RECEIPT , THE QUESTION OF ONCE AGAIN ADDING THE SAME UNDER SECTION 68 OF THE INCOME TAX ACT, 1961 DOES NOT ARISE. MORE OVER, THE FIRST APPELLAT E AUTHORITY IN THIS CASE HAS CALLED FOR THE ASSESSMENT RECORD AND FOUND THAT MKM FINSEC HAD IN FACT RESPONDED TO THE QUERIES MADE BY THE ASSESSING OFFICER AND FURNISHED A NUMBER OF DETAILS INCLUDING PAN NUMBER ETC., WHILE STATING THAT ITS BOOKS OF ACCOUNTS WERE SEIZED BY THE EXCIS E AND CUSTOMS DEPT. OF MEERUT. COPIES OF THE PANCHANAMA WERE ALSO SUB MITTED TO THE ASSESSING OFFICER. MR.SAMPATH FILED A PAPER BOOK R UNNING INTO 98 PAGES AND DREW THE ATTENTION OF THE BENCH TO THE VARIOUS DOCUMENTS AND EVIDENCES FILED BY THE ASSESSEE BEFORE THE ASSESSIN G OFFICER IN SUPPORT OF ITS CLAIM THAT THE TRANSACTIONS WITH M/S MKM FINSE C P.LTD. ARE GENUINE. 4. THE ASSESSING OFFICER HAS NOT STATED AS TO WHY T HE EVIDENCES FILED BY THE ASSESSEE ARE NOT ACCEPTABLE. 5. THE JURISDICTIONAL HIGH COURT IN THE CASE OF DIR ECTOR OF INCOME TAX (EXEMPTIONS) VS. KESHAV SOCIAL AND CHARITABLE FOUN DATION,(2005) 278 ITR 152 HAD HELD AS FOLLOWS:- SECTION 68 OF THE ACT HAS NO APPLICATION TO THE FACTS OF THE CASE BECAUSE THE ASSESSEE HAD IN FACT DISCLOSED THE DONA TIONS OF RS. 18,24,200 AS ITS INCOME AND IT CANNOT BE DISPUTED T HAT ALL RECEIPTS, OTHER THAN CORPUS DONATIONS, WOULD BE INC OME IN THE HANDS OF THE ASSESSEE. THERE WAS, THEREFORE, FULL D ISCLOSURE OF INCOME BY THE ASSESSEE AND ALSO APPLICATION OF THE DONATIONS FOR CHARITABLE PURPOSES. IT IS NOT IN DISPUTE THAT THE OBJECTS AND ACTIVITIES OF THE ASSESSEE WERE CHARITABLE IN NATUR E, SINCE IT WAS DULY REGISTERED UNDER THE PROVISIONS OF SECTION 12A OF THE ACT. 6. AS IN THIS CASE ALSO THE ENTIRE RECEIPTS FROM M/ S MKM WAS DISCLOSED AS A REVENUE RECEIPT, THE FIRST APPELLATE AUTHORITY WAS RIGHT IN UPHOLDING THE CONTENTION OF THE ASSESSEE AND DELETI NG THE ADDITION. WE DISMISS THIS APPEAL BY THE REVENUE. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER,2012. SD/- SD/- (A.D. JAIN) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: THE 17 TH SEPTEMBER, 2012 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT (A); 5.DR; 6.GUARD FILE BY ORDER DY. REGISTRAR 1. DATE OF DICTATION: 2. DRAFT PLACED BEFORE THE AUTHOR ON: 3. DRAFT PROPOSED AND PLACED BEFORE SECOND MEMBER ON: 4. DRAFT DISCUSSED/APPROVED BY THE SECOND MEMBER ON: /09 5. APPROVED DRAFT CAME TO SR.P.S. ON: /09 6. DATE OF PRONOUNCEMENT : /09 7. FILE SENT TO BENCH CLERK ON : 8. DATE ON WHICH FILE GIVEN TO HEAD CLERK ON: 9. DATE OF DISPATCHING THE ORDER ON :