SATWANTKAUR R. CHANEY, MUMBAI V. ACIT 33(3), MUMBAI

ITA 6168/MUM/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9868 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2012-2013
• Appeal Filed On: 19-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: R D KUNDALIA
• Section: 143(3)

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL H BENCH MUMB AI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH JUDICIAL MEMBER ITA NO. 6168/MUM/2016 (ASSESSMENT YEAR 2012-13 ) SATWANTKAUR R. CHANNEY UNIT , SINGH ESTATE, ROAD NO.4, FAIZAL, KANDIVALI (E), MUMBAI-400101. PAN: AAEPC3313L VS. ACIT-33(3) MUMBAI. APPELLANT RESPONDE NT APPELLANT BY : SHRI R.D. KUNDALIA (AR) RESPONDENT BY : MS. POOJA SWAROOP (DR) DATE OF HEARING : 12.07.2018 DATE OF PRONOUNCEMEN T : 26.09.2018 ORDERUNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. THIS APPEAL BY ASSESSEE UNDER SECTION 253 OF THE IN COME-TAX ACT (THE ACT) IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER O F INCOME-TAX (APPEALS) (LD. CIT(A)-45, MUMBAI DATED 24.08.2016, WHICH IN T URN ARISES FROM THE ASSESSMENT ORDER PASSED BY ASSESSING OFFICER UNDER SECTION 143(3) OF THE ACT DATED 10.03.2015 FOR ASSESSMENT YEAR 2012-13. T HE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LEARNED CIT-A HAS ERRED IN CONFIRMING THE ADDITION OF: (I) A SUM OF RS. 4,00,637/-, EXISTING IN CERTAIN SUNDRY CREDITORS ACCOUNTS IN THE BOOKS OF THE ASSESSEE-APPELLANT UND ER THE TERMS OF S.41 OF THE ITA. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS IN THE BUSINESS OF MANUFACTURER & TRADING OF FURNITURE & FIXTURE, ELEC TRICAL FITTINGS, ITA NO. 6168 MUM 2016-SATWANTKAUR R. CHANNEY 2 PLUMBING, PAINTING, AND TILING POLISHING & POP WORK , FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2012-13 ON 29.09.2012 DE CLARING TOTAL INCOME AT RS. 60,13,280/-. THE ASSESSMENT WAS COMPL ETED ON 10.03.2015 UNDER SECTION 143(3) OF THE ACT. THE ASSESSING OFFI CER WHILE PASSING THE ASSESSMENT ORDER MADE ADDITION OF RS. 4,00,637/- ON ACCOUNT OF CESSATION OF LIABILITY AS CREDITOR WERE STANDING IN THE ASSES SEES BOOK FOR MORE THAN TWO YEARS. ON APPEAL BEFORE THE LD. CIT(A), THE ACT ION OF ASSESSING OFFICER WAS CONFIRMED. THUS, AGGRIEVED BY THE ORDER OF LD. CIT(A), THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. 3. WE HAVE HEARD THE SUBMISSIONS OF THE LD. AUTHORIZED REPRESENTATIVE (AR) OF THE ASSESSEE AND THE LD. DEPARTMENTAL REPRESENTA TIVE (DR) FOR THE REVENUE AND PERUSED THE MATERIAL AVAILABLE ON RECOR D. THE LD. AR OF THE ASSESSEE SUBMITS THAT THE AMOUNTS PERTAINING TO SUN DRY CREDITORS BEING WRITTEN OFF DURING THE FINANCIAL YEAR 2014-15 I.E. ASSESSMENT YEAR 2015- 16 WERE OFFERED AS INCOME FOR TAXATION. ON THE OTHE R HAND, THE LD. DR FOR THE REVENUE SUBMITS THAT NO RETURN OF INCOME AND CO MPUTATION HAS BEEN FURNISHED ON RECORD. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF THE PAR TIES AND HAVE GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES. ON OUR DIRECTION, THE LD. AR OF THE ASSESSEE FILED COPY OF ASSESSMENT ORDER FOR ASS ESSMENT YEAR 2015-16 PASSED ON 14.12.2017 UNDER SECTION 143(3) ALONG WIT H THE RETURN OF INCOME AND COMPUTATION OF INCOME. WE HAVE NOTED THAT FOR C OMPUTATION OF ITA NO. 6168 MUM 2016-SATWANTKAUR R. CHANNEY 3 INCOME, THE ASSESSEE HAS WRITTEN BACK LIABILITY OF THE SAME AMOUNT. CONSIDERING THE CONTENTION OF LD. AR OF THE ASSESSE E, WE DIRECT THE ASSESSING OFFICER TO VERIFY THE FACTS AND GRANT APP ROPRIATE RELIEF TO THE ASSESSEE IN ACCORDANCE WITH LAW. NEEDLESS TO SAY TH AT THE ASSESSING OFFICER SHALL GRANT ADEQUATE OPPORTUNITY BEFORE GIVING EFFE CT TO ORDER OF HEARING BEFORE PASSING THE ORDER IN ACCORDANCE WITH LAW. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26/09/2018. SD/- SD/- G.S. PANNU PAWAN SINGH ACCOUNTANT MEMBER J UDICIAL MEMBER MUMBAI, DATE: 26.09.2018 SK COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. DR H BENCH, ITAT, MUMBAI 6. GUARD FILE BY ORDER, DY./ASST. REGISTRAR ITAT, MUMBAI