M/s. Abbas Transport, Aurangabad V. ITO, Ward 2(3), Aurangabad, Aurangabad

ITA 62/PUN/2010

• Counselvise Citation: 6224514 RSA 2010
• Duration Of Justice: 1 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-08-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 13-01-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJAY SINGH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER I.T.A. NO. 62/PN/2010 : A.Y. 2001-02 M/S. ABBAS TRANSPORT MONDA ROAD, JAFER GATE, AURANGABAD PAN AAHFA 1712 A APPELLANT VS. I.T.O. WARD 2(3) AURANGABAD RESPONDENT APPELLANT BY: SHRI M.K. KULKARNI RESPONDENT BY: SHRI SANJAY SINGH ORDER PER SHAILENDRA KUMAR YADAV, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) AURANGABAD DATED 30-9-2009 FOR A.Y. 2001-02 WHEREIN CONFIRMATION OF PENALTY LEVIED U/S 271(1)(C)OF THE ACT HAS BEEN OPPOSED. 2. THE LEARNED AR HAS ALSO CONTENDED THAT THE APPEA L IS BARRED BY LIMITATION BY 74 DAYS. IN THIS REGARD, T HE LEARNED AR FILED AN AFFIDAVIT ON BEHALF OF THE ASSE SSEE, INTER ALIA, DEPOSING THAT THE DELAY IS ATTRIBUTABLE TO TH E CONCERNED CHARTERED ACCOUNTANT. IT IS SETTLED LEGA L POSITION THAT THE ASSESSEE SHOULD NOT BE SUFFERED F OR LAPSE OR FAULT ON THE PART OF THE AUTHORIZED REPRESENTATI VE. IN VIEW OF THIS, THE DELAY IS CONDONED. 2 ITA NO.62/PN/2010 ABBAS TRANSPORT A.Y. 2001-02 3. THE ASSESSEE HAS SHOWN CREDIT BALANCE IN THE HAN DS OF APPROXIMATELY 10 PERSONS/CONCERNS ON ACCOUNT OF UNSECURED LOAN/TRADE CREDITS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS U/S 143(3) R.W.S. 263 OF THE ACT, THE ASSESSEE WAS ASKED TO FURNISH EVIDENCES IN SUPP ORT OF GENUINENESS OF UNSECURED LOAN/TRADE CREDITORS AND PRODUCE CREDITORS FOR VERIFICATION SO THAT THEIR ID ENTITY AND CREDITWORTHINESS CAN BE VERIFIED. INSPITE OF SUFFI CIENT OPPORTUNITY PROVIDED BY THE ASSESSING OFFICER, THE ASSESSEE COULD NOT PRODUCE ONE OF THE CREDITORS SHRI RAHIM M ISTRY, HYDERABAD IN WHOSE NAME AN AMOUNT OF RS. 1,00,000/- WAS CREDITED IN ASSESSEES BOOKS OF ACCOUNTS. EVEN DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE F AILED TO FURNISH SUFFICIENT EVIDENCE IN SUPPORT OF GENUINENE SS OF CREDITS STANDING IN THE NAME OF SHRI RAHIM MISTRY, HYDERABAD AND NO ATTEMPT WAS MADE TO PRODUCE THE CREDITORS FOR VERIFICATION. 4. THE FACTS CLEARLY SHOW THAT THE ASSESSEE HAS CON CEALED ITS INCOME BY FURNISHING INACCURATE PARTICULARS IN RESPECT OF UNSECURED LOAN/TRADE CREDITORS. WHILE FURNISHING A RETURN OF INCOME AN ASSESSEE IS REQUIRED TO FURNISH PARTICULARS OF ACCOUNTS ON WHICH SUCH RETURNED INCO ME HAS BEEN ARRIVED AT. THE ONUS IS ON THE ASSESSEE TO ES TABLISH THE GENUINENESS OF CREDIT BALANCES SHOWN AS OUTSTAN DING IN HIS BOOKS OF ACCOUNTS. THE ASSESSEE HAS CLEARLY FAILED TO DISCHARGE SUCH ONUS. THE ASSESSING OFFICER PROCEED ED TO VERIFY THE GENUINENESS OF CREDITORS. IN THE PROCES S, ASSESSEE UTTERLY FAILED TO SUBSTANTIATE GENUINENESS OF CREDIT BALANCE OUTSTANDING IN THE NAME OF SHRI RAHI M MISTRY, HYDERABAD AND IT WAS FOUND THAT IDENTITY AN D CREDIT WORTHINESS OF SUCH CREDITS WAS NOT VERIFIABL E IN PENALTY PROCEEDINGS. ACCORDINGLY, PENALTY WAS LEVIE D. THE 3 ITA NO.62/PN/2010 ABBAS TRANSPORT A.Y. 2001-02 SAME HAS RIGHTLY BEEN CONFIRMED BY THE CIT(A) WE UP HOLD THE SAME. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST 2011. SD/ - (G.S. PANNU) ACCOUNTANT MEMBER SD/ - SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE DATED THE 30 TH AUGUST 2011 ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) AURANGABAD 4. THE CIT AURANGABAD 5. THE D.R, ITAT PUNE BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES, PUNE.