KUMAR VIKALP, Jaipur V. ACIT, Jaipur

ITA 586/JPR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99526 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 30-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA-@ ITA NOS. 586/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2008-09 . KUMAR VIKALP PROP. M/S. CLASSIC ROVERS, B-88, VAISHALI NAGAR, JAIPUR. CUKE VS. THE ACIT (OSD), CIRCLE-3, JAIPUR. L LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAPFS 2462 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY S BY : SHRI S.L. GUPTA, CA JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17.11.2015. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 27/11/2015. VKNS'K@ ORDER PER SHRI LALIET KUMAR, J.M. THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF LD. CIT (A), ALWAR DATED 25.03.2013. THE SOLITARY GROUND RAISED IN THE APPE AL IS AS UNDER :- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT (APPEALS) ALWAR IS WRONG, UNJUST AND HAS ERRED IN LAW IN UPHO LDING THE ADDITION OF RS. 7,07,338/- ON THE BASIS OF DETAILS OF 26AS/ITS FACTUALLY THE ASSESSEE HAS NEITHER RENDERED SERVICES FOR THE ABOVE REFERRE D AMOUNT NOR RECEIVED SUCH AMOUNT IN THE RELEVANT YEAR, FOR WHATEVER HE R ENDERED HE RAISED THE BILL IN THE RELEVANT YEAR. THEREFORE THE ADDITION O F RS. 7,07,338/- IS UNJUST AND LIABLE TO BE DELETED. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED ITS RETURN OF INCOME ON 03.10.2008 DECLARING TOTAL INCOME OF RS. 8,15,850/- . THE RETURN WAS SCRUTINIZED AND PROCESSED UNDER SECTION 143(3) OF THE IT ACT. DURI NG THE YEAR UNDER CONSIDERATION THE 2 ITA NO. 586/JP/2013 A.Y. 2008-09. KUMAR VIKALP VS. ACIT (OSD), CIRCLE-3, JAIPUR. AO OBSERVED THAT AS PER 26AS/ITS DETAILS, THE ASSES SEE HAS RECEIVED CONTRACTUAL RECEIPTS OF RS. 10,12,514/- FROM M/S. GATEWAY MEDIA PVT. LTD. VIDE ITS ENTRY NO. 4. OUT OF THIS AMOUNT RS. 3,39,514/- HAD BEEN SHOWN BY THE ASSESSEE IN HIS BOOKS OF ACCOUNT AS TAXI RECEIPTS, AIR TICKET RECEIPTS, HOTEL BOOKIN G RECEIPTS AND CONFERENCE MANAGEMENT FEES ON 23.03.2008. THE ASSESSEE HAS NOT SHOWN THE BALANCE AMOUNT OF RS. 6,73,000/- AS CONTRACTUAL RECEIPTS FOR THE YEAR UNDER CONSIDER ATION. THE ASSESSEE WAS ASKED WHY THIS AMOUNT OF RS. 6,73,000/- BE NOT ADDED TO THE T OTAL INCOME OF THE ASSESSEE. THE ASSESSEE VIDE ITS REPLY DATED 27.12.2010 EXPLAINED THAT IT HAS RAISED THE BILLS FOR RS.3,39,514/- ONLY FOR THE YEAR UNDER CONSIDERATION AND BILLS FOR THE REMAINING AMOUNT OF RS. 6,73,000/- WILL BE RAISED IN THE NEXT YEAR A S THE WORKS COMPLETED IN THE NEXT YEAR AND THE PAYMENT TO THE EXTENT OF RS. 6,73,000/- HAS ALSO NOT RECEIVED IN THE YEAR UNDER CONSIDERATION. AFTER CONSIDERING THE REPLY OF THE ASSESSEE, THE AO OBSERVED THAT THE CONTENTION OF THE ASSESSEE IS NOT TENABLE AS THE PA RTY M/S. GATEWAY MEDIA PVT. LTD. HAS SHOWN THE PAYMENT CREDITED TO THE ACCOUNT OF THE AS SESSEE OF RS. 10,12,514/- ON 22.02.2008, AS PER ITS DETAILS. THE AO ALSO OBSERVE D THAT SINCE THE ASSESSEE WAS FOLLOWING THE MERCANTILE SYSTEM OF ACCOUNTING, THE AMOUNT SO CREDITED SHOULD BE TAXED IN THE YEAR UNDER CONSIDERATION. 3. SIMILAR IS THE POSITION IN CASE OF M/S. KLG SYST EM LTD. AND M/S. RASHI ENTERTAINMENT LTD. FROM WHOM ALSO THE ASSESSEE RECEI VED RS. 25,338/- AND RS. 9000/- RESPECTIVELY BUT THE ASSESSEE HAS NOT SHOWN THIS AM OUNT IN ITS TOTAL INCOME. THUS ON THE BASIS OF OBSERVATIONS MADE IN THE FOREGOING PAR A, THE AO MADE THE TOTAL ADDITION OF RS. 7,07,338/- (RS. 6,73,000 + RS. 25,338 + RS. 9,0 00/-) TO THE INCOME OF THE ASSESSEE. 3 ITA NO. 586/JP/2013 A.Y. 2008-09. KUMAR VIKALP VS. ACIT (OSD), CIRCLE-3, JAIPUR. 4. BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER BEFORE LD. CIT (A), WHO HAD CONFIRMED THE ADDITION BY OBSERVING AS UNDER :- 4.4. I HAVE CONSIDERED THE ASSESSMENT ORDER, REM AND REPORT AS WELL AS SUBMISSIONS MADE BY THE A.R. I FIND THAT THE APPELL ANT HAS NOT OFFERED CONTRACTUAL RECEIPTS AMOUNTING TO RS. 7,07,338/-, F ROM ABOVE MENTIONED THREE PARTIES, ALTHOUGH THE SAID AMOUNTS HAVE BEEN CREDITED TO HIS ACCOUNT BY THE CONTRACTEE. THE AMOUNT CREDITED HAVE ALSO BEEN REFLECTED IN THE 26AS/ITS STATEMENTS AND THE APPELLANT, WHO I S FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING, SHOULD HAVE ACCOUNTED FOR THE SAME ON ACCRUAL BASIS SINCE HIS RIGHT TO RECEIVE THE SAID AMOUNTS I S NOT DISPUTED. THE SUBMISSION OF THE APPELLANT THAT HE HAS NEITHER REC EIVED THE SAID AMOUNTS OF RS. 6,73,000/-, RS. 25,338/- & RS. 9,000/-) NOR THE WORK HAS BEEN COMPLETED AND THEREFORE THE AMOUNTS WERE NOT SHOWN AS RECEIPTS IS FOUND TO BE WITHOUT ANY MERIT AND AGAINST THE PRINCIPLE O F ACCOUNTING. ONCE, THE APPELLANT HAS ENTERED INTO A CONTRACTUAL AGREEMENT WITH ANOTHER PARTY AND THE CONTRACTEE HAS MADE/CREDITED PAYMENT TO THE CONTRACTOR FOR THE SERVICES RENDERED AND HAS DEDUCT ED TDS ON THE SAME, THE RECEIPT SHOULD HAVE BEEN ACCOUNTED FOR, IN THE ACCOUNTS OF THE APPELLANT. THE APPELLANT HAS NOT DEMONSTRATED WHY T HE SAID CREDITS WERE NOT ITS INCOME EVEN IN THE REMAND PROCEEDINGS. THUS , I AM OF THE CONSIDERED OPINION THAT THE AO HAS RIGHTLY ADDED TH E SAID AMOUNT OF RS. 7,07,338/- TO TOTAL INCOME OF THE APPELLANT. IN VIEW OF ABOVE DISCUSSION, THE ADDITION OF RS. 7, 07,338/- IS CONFIRMED AND THIS GROUND IS DISMISSED. 5. NOW THE ASSESSEE IS BEFORE US. THE LD. A/R OF TH E ASSESSSEE HAS SUBMITTED THAT DURING THE RELEVANT FINANCIAL YEAR 2007-08 THE ASSE SSEE HAS NOT RECEIVED ANY AMOUNT FROM M/S. GATEWAY MEDIA PVT. LTD. TO THE TUNE OF RS . 10,12,514/- FOR WHICH THE 26 AS 4 ITA NO. 586/JP/2013 A.Y. 2008-09. KUMAR VIKALP VS. ACIT (OSD), CIRCLE-3, JAIPUR. WAS ISSUED AND HAS ONLY RECEIVED AN AMOUNT OF RS. 3 ,39,514/-. SIMILARLY, THE ASSESSEE HAS NEITHER RAISED THE BILL TO M/S. KLC STEELS NOR ANY PAYMENT WAS RECEIVED FROM IT, BUT FORM 26AS FOR THE AMOUNT OF RS. 25,338/- WAS WRONGL Y CREDITED TO THE ACCOUNT OF THE ASSESSEE. SIMILARLY, THE LD. A/R FOR THE ASSESSEE H AS SUBMITTED THAT NEITHER ANY BILL WAS RAISED BY THE ASSESSEE NOR ANY SERVICES WERE RENDER ED BY THE ASSESSEE NOR ANY PAYMENT WAS RECEIVED FROM M/S. RASHI ENTERTAINMENT P VT. LTD. BUT THE FORM 26AS WAS CREDITED TO THE ACCOUNT OF THE ASSESSEE FOR A SUM O F RS. 9,000/- ON THE BASIS OF WHICH TDS WAS MADE. THE LD. A/R FOR THE ASSESSEE HAS SUBM ITTED THAT THE AO HAS WRONGLY ADDED THE SUM OF RS. 7,07,338/- TO THE TOTAL INCOME OF THE ASSESSEE ON THE BASIS OF ABOVE SAID WRONG 26AS/ITS. HE SUBMITTED THAT THE A O IS UNDER AN OBLIGATION TO VERIFY THE FACTS FROM THE SAID COMPANY I.E. M/S. GATEWAY M EDIA PVT. LTD., M/S. KLC STEELS AND M/S. RASHI ENTERTAINMENT PVT. LTD. IT WAS CONTENDED BY THE LD. A/R FOR THE ASSESSEE THAT HE HAD DISCHARGED HIS ONUS BY PRODUCING THE EN TIRE BOOKS OF ACCOUNT, BANK STATEMENT ETC. AND IT IS FOR THE AO TO ISSUE THE NO TICE UNDER SEC. 133 TO THE ABOVE SAID PARTIES CALLING FOR THE EXPLANATION AS TO HOW THE A MOUNT HAS BEEN SHOWN IN 26AS/ITS. 5.1. PER CONTRA, THE LD. D/R FOR THE REVENUE HAS RE LIED ON THE ORDER OF LD. CIT (A) AND HAS SUBMITTED THAT ONCE THE FORM 26AS/ITS HAVE BEEN ISSUED, THE NON-DISCLOSURE OF THE INCOME CORRESPONDING THERETO, HAS RIGHTLY BEEN ADDE D TO THE INCOME OF THE ASSESSEE BY THE AO. 5.2. WE HAVE HEARD THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. IT IS CORRECT THAT NOBODY WILL DEPOSIT THE AMOUNT IN THE FORM OF 26AS/ ITS IN THE ACCOUNT OF THE ASSESSEE. SIMULTANEOUS IT IS ALSO CORRECT THAT THE ASSESSEE C AN ONLY PRODUCE THE RECORD IN ITS POSSESSION AND IN OUR VIEW THE ASSESSEE HAS DISCHAR GED ITS ONUS BY PRODUCING THE 5 ITA NO. 586/JP/2013 A.Y. 2008-09. KUMAR VIKALP VS. ACIT (OSD), CIRCLE-3, JAIPUR. RECORDS IN THE FORM OF BOOKS OF ACCOUNTS, BANK STAT EMENT ETC. WE, THEREFORE, HEREBY SET ASIDE THE ORDER PASSED BY THE AUTHORITIES BELOW AND REMIT THE MATTER TO THE FILE OF AO WITH THE DIRECTION TO ISSUE APPROPRIATE NOTICES UNDER SECTION 133(1) TO THE ABOVE NAMED PARTIES, NAMELY, M/S. GATEWAY MEDIA PVT. LTD. , M/S. KLC STEELS AND M/S. RASHI ENTERTAINMENT PVT. LTD. AND TO ENQUIRE FROM THEM THE BASIS FOR ISSUING 26AS/ITS IN FAVOUR OF THE ASSESSEE. IF THE AO IS SATISFIED THAT THE FORMS HAVE BEEN CORRECTLY ISSUED FOR THE SERVICES RENDERED BY THE ASSESSEE, THE AO S HALL PROCEED AGAINST THE ASSESSEE IN ACCORDANCE WITH LAW. WITH THE ABOVE DISCUSSION, THE MATTER IS REMANDED TO THE FILE OF AO FOR DECISION AFRESH. 6. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27/11/201 5. SD/- SD/- VH-VKJ-EHUK YFYR DQEKJ (T.R. MEENA) (LALIET KUMAR) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27/11/2015 DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. KUMAR VIKALP. PROP. M/S. CLASSI C ROVERS, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT (OSD), CIRCLE-3, JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDRVIHY@ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 586/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR 6 ITA NO. 586/JP/2013 A.Y. 2008-09. KUMAR VIKALP VS. ACIT (OSD), CIRCLE-3, JAIPUR.