ACIT, Faridabad V. M/s Hamlet Real Projects India Pvt. Ltd., New Delhi

ITA 5707/DEL/2010

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97510 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 01-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 16-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NANDITA KANCHAN
• Assessee Lawyers: SUNIL MATHUR ITP
• Keywords: Bogus purchase; Search and seizure
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI R. S. SYAL, ACCOUNTANT MEMBER AND SMT SUCHITRA KAMBLE , JUDICIAL MEMBER I.T.A .NO.- 5707/DEL/2010 (ASSESSMENT YEA R-2008-09) ACIT CENTRAL CIRCLE-1 FARIDABAD (APPELLANT) VS HAMLET REAL PROJECTS INDIA PVT. LTD. A-16/B-1, MOHAN CO-OP, INDL. ESTATE. MAIN MATHURA ROAD, NEW DELHI AABCH7111D (RESPONDENT) APPELLANT BY SMT. NANDITA KANCHAN CIT (DR) RESPONDENT BY SH. SUNIL MATHUR, ITP ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST ORDER D ATED 29/09/2010 PASSED BY LD. CIT(A) 1, LUDHIANA. THE GROUNDS OF A PPEAL ARE AS FOLLOWS:- 1. THE LD. CIT(A) HAS ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN DELETING AN ADDITION OF RS.2,78,32,218/- MADE ON ACCOUNT OF BOGUS PURCHASES [RELYING ON THE RATIO OF HIS OWN DE CISIONS IN THE CASE OF PIYUSH DEVELOPERS (P) LTD IN ITA NO. 39-IT/ CIT(A)- 1/LDH/09-10, DATED 29/09/2010], WITHOUT APPRECIATIN G THAT DESPITE ABUNDANT OPPORTUNITIES GIVEN BY THE ASSESSI NG OFFICER, AND BEING CONFRONTED ON RECORD, THE ASSESSEE FAILED TO PRODUCE THE PARTIES AND TO PROVE THE GENUINENESS, IDENTITY AND DATE OF HEARING 01.10.2015 DATE OF PRONOUNCEMENT 07 .10.2015 CREDITWORTHINESS OF THE PARTIES FROM WHOM THE ALLEG ED PURCHASES WERE MADE, THE ONUS FOR WHICH HAD SQUARELY SHIFTED ON THE ASSESSEE AFTER THE RELEVANT PARTIES WERE NOT FOUND TO EXIST AT THE ADDRESSES FURNISHED BY THE ASSESSEE TO THE ASSESSIN G OFFICER. 2. BRIEF FACTS OF THE CASE ARE THERE WAS SEARCH AND SEIZURE OPERATION OF PIYUSH GROUP OF COMPANIES ON 16/1/2008 DURING THE C OURSE OF SEARCH AT THE CORPORATE OFFICE OF PIYUSH GROUP, BOOKS OF ACCO UNTS WERE FOUND AND SEIZED AS PER ANNEXURE A-1 TO A-79 OF THE INVENTORY OF SEIZED DOCUMENT. NOTICE UNDER SECTION 143(2) AND 142(1) ALONGWITH QU ESTIONNAIRE 24.09.2009 WERE ISSUED AND DULY SERVED UPON THE ASSESSEE. TH E ASSESSING OFFICER PASSED ASSESSMENT ORDER DATED 29/12/2009 WHEREIN TH E ASSESSING OFFICER HAS ADDED RS.2,96,99,480/- AGAINST RETURN INCOME OF RS.18,66,350/- IN RESPECT OF BOGUS PURCHASE MADE DURING THE YEAR. TH E ASSESSES CHALLENGED THE SAME BEFORE THE CIT(A) AND THE SAID GROUND WAS DISMISSED BY THE CIT(A). 3. THE AR SUBMITTED AN ORDER DATED 8 TH JULY 2015 PASSED BY THE ITAT DELHI BENCH IN ITA NO. 5599/DEL/2010 IN CASE OF SEA RCHED PARTY I.E. PIYUSH DEVELOPERS PVT. LTD., WHEREIN THE APPEAL OF PIYUSH DEVELOPERS HAS BEEN ALLOWED AND POINTED OUT THAT IN FACT THE GROUNDS CO NTESTED BY THE REVENUE IN THE PRESENT CASE ARE SIMILAR. 4. THE DR TOTALLY RELIED ON ASSESSING OFFICERS ORD ER BUT COULD NOT DISTINGUISH THE ORDER PASSED BY THIS TRIBUNAL IN PI YUSH DEVELOPERS CASE. [PIYUSH DEVELOPERS PVT. LTD. VS. ACIT (ITA NO. 5599 /DEL/2010) AND ACIT VS. PIYUSH DEVELOPERS PVT. LTD. (ITA NO. 5706/DEL/2 010) DATED 08.07.2015] 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RECORDS AND FOUND THAT THE ISSUE CONTESTED BEFORE THE ITAT IN THE PRE SENT CASE ARE COVERED BY PIYUSH DEVELOPERS PVT. LTD. 6. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 7 TH OF OCTOBER, 2015. SD/- SD/- (R.S. SYAL) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBE R DATED: 07/10/2015 R. NAHEED* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 05.10.2015 PS 2. DRAFT PLACED BEFORE AUTHOR 05.10.2015 PS 3. DRAFT PROPOSED & PLACED BEFORE JM/AM THE SECOND MEMBER 06.10.2015 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 06.10.2015 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 07.10.2015 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.