The Gowthami Solvent Oils Ltd., Tanuku V. THE ACIT, Rajahmundry

ITA 610/VIZ/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8757 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 24-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P S MURTHY
• Assessee Lawyers: E V SRIKRISHNA; C SUBRAHMANYAM CA S
• Keywords: Additional evidence
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 610 / VIZ /201 4 (ASST. YEAR : 20 1 0 - 11 ) M/S. THE GOWTHAMI SOLVENT OILS LTD., P.B.NO. 7, PYDIPARRU, TANUKU , W.G. DISTRICT . V S . A CIT, CIRCLE - 1 , RAJAHMUNDRY . PAN NO. AAACT 6359 A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI E.V. SRI KRISHNA & SHRI C. SUBRAHMANYAM CA S . DEPARTMENT BY : SHRI P.S. MURTHY SR. DR DATE OF HEARING : 20 / 0 2 /201 8 . DATE OF PRONOUNCEMENT : 23 / 0 2 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT ( A ), VISAKHAPATNAM , DATED 22 /0 9 /2014 FOR THE ASSESSMENT YEAR 20 1 0 - 11 . 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS ENGAGED IN GENERATION OF POWER PLANT, MANUFACTURING OF RICE BAN OIL, FATTY ACID OIL, DE - OILED BRAN AND SPINNING OF COTTON Y ARN . THE ASSESSEE FILED ITS RETURN OF INCOME BY DECLARING TOTAL INCOME OF RS. 5,16,31,580/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND AFTER FOLLOWING DUE PROCEDURE, ASSESSMENT IS COMPLETED UNDER SECTION 2 ITA NO. 610/VIZ/2014 ( M/S. THE GOWTHAMI SOLVENT OILS LTD. ) 143(3) OF THE ACT BY MAKING ADDITION IN RESPECT OF SUNDRY CREDITORS OF RS. 49,72,933/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER CALLED THE DETAILS OF THE FOLLOWING SUNDRY CREDITORS: - S.NO. DESCRIPTION AMOUNT (RS.) 1 SMT. MALLINA BHARATI RAO 488 2 SHRI ANV PRASAD 15,000 3 B.H. VENKATA SATYANARAYANA 50 , 000 4 LAKSHMI GANAPATI ENTERPRISES 51 , 358 5 SAI GAYATRI SOAP WORKS 3 , 55 , 910 6 SANJEEV AGRO PVT LTD.,. 39 , 097 7 SUNDRY CREDITORS DOB AGENT 6 , 95 , 715 8 SUNDRY CREDITOR OIL AGENTY 3 , 10 , 243 9 SUNDRY CREDITOR REFINED OIL AGENT 10 , 07 , 603 10 SUNDRY CREDITORS SOYA 1 , 33 , 125 11 FCS CREDITORS ON YARN/COTTON 3 , 62 , 320 12 S.V. OIL & CHEMICAL INDUSTRY 670 13 SRI Y.V. RAMA KRISHNA 50 , 000 14 SUNDRY CREDITORS YARN AGENT 19 , 01 , 404 TOTAL 49 , 72 , 933 THE ASSESSEE HAS FILED THE RELEVANT DETAILS BEFORE THE ASSESSING OFFICER. THE ASSESSING OFFICER ALSO NOTED THAT IN CERTAIN CONFIRMATION LETTERS SUBMITTED BY THE ASSESSEE , THERE IS A OVERWRITING , CHANGES OF DATES AND INFORMATION BY US ING WHITENER ETC. THEREFORE, HE TOOK A VIEW THAT THE ASSESSEE COULD NOT ESTABLISH THE IDENTITY , GENUINENESS OF THE TRANSACTIONS OF SOME OF THE CREDITORS , HENCE, DISALLOWED RS. 49,72,933/ - . 3. ON APPEAL BEFORE THE LD. CIT(A) ALSO , THE ASSESSEE COULD NOT FURNISH THE CONFIRMATIONS IN RESPECT OF CREDITORS REFERRED AT S.NO. 3 ITA NO. 610/VIZ/2014 ( M/S. THE GOWTHAMI SOLVENT OILS LTD. ) 1, 6, 7, 8, 9, 10, 11 & 14 OF THE ABOVE TABLE. IN RESPECT OF S.NO.6, THE ASSESSEE HAS FILED ONLY LEDGER EXTRACT , IN RESPECT OF S.NOS. 2, 3, 13 CONFIRMATION LETTERS WERE FILED , IN RESPECT OF S.NO. 4 & 5, ACCOUNT STATEMENT S WERE FILED. THEREFORE, LD.CIT(A) HAS DIRECTED THE ASSESSING OFFICER TO CONSIDER THE DETAILS FILED BY THE ASSESSEE AND RE - COMPUTE THE TOTAL INCOME OF THE ASSESSEE. 4. BEFORE U S, LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE HAS FILED A PETITION UNDER RULE 29 OF THE ITAT RULES, 1963 SEEKING ADMISSION OF ADDITIONAL EVIDENCE IN THE FORM OF PAPER BOOK , WHICH IS CONSISTING OF LEDGER COPY OF THE CREDITORS AT PAGE NO.376 , CONFIRMATION LETTERS FROM THE CREDITORS AT PAGE NO. 377 AND LEDGER COPIES OF CREDITORS FOR THE NEXT YEARS AT PAGE NO. 378 TO 390 . 5. ON THE OTHER HAND, THE LD. D.R. STRONGLY OPPOSED FOR ADMISSION OF ADDITIONAL EVIDENCE AND SUBMITTED THAT MANY OPPORTUNITIES HAVE BEEN GIVEN BY THE ASSESSING OFFICER, BUT ASSESSEE HAS NOT UTILIZED TO FILE THE DETAILS. 6 . WE HAVE HEARD BOTH THE PARTIES . 7 . WE FIND THAT THE ASSESSING OFFICER HAS MADE THE ADDITION IN RESPECT OF 14 SUNDRY CREDITORS OF RS. 49,72,933/ - . THE ASSESSEE HAS NOT FILED THE RELEVANT DETAILS BEFORE THE ASSESSING OFFICER, THEREFORE HE MADE AN ADDITION UNDER SECTION 68 OF THE ACT. BEFORE THE LD. CIT(A) ALSO, THE ASSESSEE HAS NOT FILED THE DETAILS OF SOME 4 ITA NO. 610/VIZ/2014 ( M/S. THE GOWTHAMI SOLVENT OILS LTD. ) OF THE ABOVE SUNDRY CREDITORS , THEREFORE, LD. CIT(A) REMANDED THE MATTER BACK TO THE ASSESSING OFFICER FOR CONSIDERATION OF THE SAME. NOW, THE ASSESSEE HAS MOVED A PETITION FOR ADMISSION OF ADDITIONAL EVIDENCE AND SUBMITT ED THAT ALL THE DETAILS OF THE SUNDRY CREDITORS ARE AVAILABLE WITH THE ASSESSEE AND THE SAME MAY BE ADMITTED , AND DIRECT THE ASSESSING OFFICER TO CONSIDER THE SAME . BY CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE , WE ARE OF THE OPINION THAT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE H AS TO BE ADMITTED. ACCORDINGLY, WE ADMIT THE ADDITIONAL EVIDENCE AND SET ASIDE THE ORDER PASSED BY THE LD.CIT(A) AND REMAND THE MATTER BACK TO THE ASSESSING OFFICER TO ADJUDICATE THE ISSUE AFRESH BY CONSIDERING T HE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 2 3 R D DAY OF FEB . , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 3 R D FEB RUARY , 201 8 . VR/ - 5 ITA NO. 610/VIZ/2014 ( M/S. THE GOWTHAMI SOLVENT OILS LTD. ) COPY TO: 1. THE ASSESSEE - M/S. THE GOWTHAMI SOLVENT OILS LTD., P.B.NO. 7, PYDIPARRU, TANUKU, W.G. DISTRICT. 2. THE REVENUE A CIT, CIRCLE - 1 , RAJAHMUNDRY . 3. THE CIT, RAJAHMUNDRY . 4. THE CIT(A) , VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM . 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR.PS, ITAT, VIZAG.