Harvest Ice &Cold StoragePvt. Ltd., Agra V. DCIT, Circle 4(1), Agra

ITA 59/AGR/2011

• Counselvise Citation: 5920314 RSA 2011
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-10-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 24-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Assessee Lawyers: MAHESH AGARWAL
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.59/AGR/2011 ASSESSMENT YEAR: 2006-07 HARVEST ICE & COLD STORAGE PVT. LTD., VS. D.C .I.T., CIRCLE 4(1), 27, KHANDELWAL COLONY, AGRA. RING ROAD, AGRA. (PAN: AABCH 3811 Q). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MAHESH AGARWAL, C.A. RESPONDENT BY : SHRI A.K. SHARMA, JR. D.R. DATE OF HEARING : 13.10.2011 DATE OF PRONOUNCEMENT : 17.10.2011 ORDER PER B.C. MEENA, A.M. : THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING OUT OF THE ORDER OF CIT(A)-II, AGRA DATED 27.01.2011. 2. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINES S OF RUNNING COLD STORAGE AND DERIVING INCOME AS RENTAL CHARGES RECEIVED FROM FARMERS WHOSE PRODUCES ARE KEPT IN THE COLD STORAGE. ITA NO.59/AGR/2011 A.Y. 2006-07 2 3. THE GROUNDS OF APPEAL READ UNDER:- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE AND IN LAW THE LD. AUTHORITIES BELOW HAVE ERRED IN CONFIRMING THE ADDITION OF ` 2,15,000/-. 2. THAT THE LD. AUTHORITIES BELOW FAILED TO APPRECI ATE THAT THE ASSESSEE GAVE ALL THE INFORMATION AND MATERIAL EVID ENCES RELATED TO THE LENDER OF THE UNSECURED LOAN OF ` 2,00,000/- WHICH WERE IN THEIR CONTROL. 3. THAT THE LD. AUTHORITIES BELOW COULD NOT BE HELD JUSTIFIED, TO HAVE PROCEEDED TO UPHOLD THE ADDITION OF ` 2,15,000/- BY IGNORING ALL THE RELEVANT MATERIAL PLACED ON RECORDS DURING ASSE SSMENT AND APPELLANT PROCEEDINGS SUFFICIENT ENOUGH TO DISCHARG E THE BURDEN ON THE ASSESSEE OF PROVING THE IDENTITY, GENUINENESS, CAPACITY OF THE DEPOSITOR AND THE TRANSACTION OF LOAN, WHICH LAID U PON THE ASSESSEE. 4. THAT THE APPELLANT GRIEVES THAT THE ADDITIONS HA VE BEEN MADE ON MERE SUSPICIONS AND SURMISES AGAINST THE WELL-ACCEP TED PRINCIPLE OF NATURAL JUSTICE THAT SUSPICIONS HOWSOEVER STRONG CA NNOT TAKE PLACE OF EVIDENCE AND ADVERSE INFERENCE CANNOT BE TAKEN AGAI NST THE ASSESSEE MERELY ON THE BASIS OF SUSPICIONS. 5. THAT IN THE ABSENCE OF ANY EVIDENCE TO THE CONTR ARY PLACED ON RECORD BY THE LD. AUTHORITIES BELOW, THEY HAVE FAIL ED TO DISCHARGE THE ONUS THAT THE APPARENT WAS NOT REAL AND THE BURDEN RESTS ON THEM, AS A MATTER OF ESTABLISHED LAW IN FORCE, TO ESTABLISH TH E FACT AND BASIS FOR THEIR NOT RELYING ON APPARENT AND MAKING THE ADDITI ONS. IN THE ABSENCE OF POSITIVE AND COGENT MATERIAL, NO ADVERSE INFERENCE COULD BE DRAWN AGAINST THE ASSESSEE. 6. THAT THE APPELLANT CRAVES TO BE ALLOWED TO ADD, AMEND OR ALTER ANY OF THE ABOVE GROUNDS OF APPEAL. IT IS, THEREFORE, PRAYED THAT THE ADDITIONS MADE BE DIRECTED TO BE DELETED AND THE APPEAL BE ALLOWED AS PRAYED ABOVE. ITA NO.59/AGR/2011 A.Y. 2006-07 3 4. THE ONLY ISSUE INVOLVED IN ALL THESE GROUNDS IS CONFIRMING THE ADDITION OF ` 2,15,000/-. 5. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND AL SO PERUSED THE RECORDS AVAILABLE ON RECORD. THE CIT(A) HAS CONFIRMED THE ADDITION BY HOLDING THAT THERE WAS A CASH DEPOSIT IN THE ACCOUNT OF CREDITOR SMT. SUNITA GOYAL JUST BEFORE ISSUING CHEQUE TO THE ASSESSEE. THE CIT(A) HAS ALSO GIVEN A FINDING THAT THE CREDIT BALANCE IN THE ACCOUNT OF CREDITOR SMT. SUNITA GOYAL, PRIOR TO THE CASH DEPOSITS, WAS RANGING FROM ` 1,261/- TO ` 7,787/- AND BY HOLDING SO THE CIT(A) HAS HELD THAT THE CREDITWORTHINESS OF THE CREDITOR IS NOT PROVED AND FOR PROVING THE CREDIT WORTHINESS THE ONUS WAS ON THE ASSESSEE. BEFORE US, THE LD. D EPARTMENTAL REPRESENTATIVE HAS ALSO FAILED TO ESTABLISH THE CREDIT WORTHINESS OF T HE CREDITOR SMT. SUNITA GOYAL AND IN VIEW OF THIS FACT, WE FIND NO FAULT IN UPHOLDING THE ORDER OF THE CIT(A) AND DISMISSING THE ASSESSEES APPEAL. 6. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS DIS MISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 17.10.2011). SD/- SD/- (H.S. SIDHU) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 17 TH OCTOBER, 2011 PBN/* ITA NO.59/AGR/2011 A.Y. 2006-07 4 COPY OF THE ORDER FORWARDED TO: APPELLANT/RESPONDENT/CIT CONCERNED/CIT(APPEALS) CO NCERNED/D.R., ITAT, AGRA BENCH, AGRA/GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY