Vadehra Furnishers Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 63/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58756 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2008-2009
• Appeal Filed On: 05-01-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: C B SINGH
• Section: 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H DELHI BEFORE SHRI U.B.S. BEDI AND SHRI K.G. BANSAL ITA NO. 63(DEL)/2012 ASSESSMENT YEAR: 2008-09 VADEHRA FURNISHERS PVT. LTD., INCOME-TAX OFFICER, A-195, OKHLA INDL. AREA, VS. WARD 17(1), NEW DELHI. PHASE-I, NEW DELHI-20. PAN: AAACV2244E (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY: SHRI C.B. SINGH, SR. D.R. DATE OF HEARIN G : 07.03.2012 DATE OF PRONOUN CEMENT: 07.03.2012 ORDER PER K.G. BANSAL : AM THE ONLY GROUND TAKEN BY THE ASSESSEE IN THIS APP EAL IS TO THE EFFECT THAT THE LD. CIT(APPEALS) ERRED IN SUSTAINING THE ADDITION OF RS. 8,50,000/- MADE BY THE AO. THE ADDITION WAS CONFI RMED BY THE LD. CIT(APPEALS) BY MAKING FOLLOWING REMARKS:- 7. THE APPELLANT COMPANY HAS SHOWN RECEIPT OF R S. 15,24,500/- DURING THE FINANCIAL YEAR 2007-08 AS ADVANCE FROM M/S SAS HOTELS & PROPERTIES PVT. LTD. THE APPELLANT HAS SUPPLIED FURNITURE FOR RS. 6,74,000/- AND THE BALANCE AMOUNT OF RS. 8,50,000/- WAS SHOWN AS OUTSTANDIN G IN FAVOUR OF THE CLIENT ON 31.03.2008. THE AO MADE ENQUIRIES UNDER S. 133(6) AND IT HAS CONFIRMED ONLY PAYMENT OF RS. 6,74,000/- EQUIVALENT TO THE SALES MADE TO THEM. THEY HAVE ITA NO. 63(DEL)/2012 2 NOT CONFIRMED THE OUTSTANDING AMOUNT OF RS. 8,50 ,000/- STANDING IN FAVOUR OF THEM IN THE BOOKS OF THE AP PELLANT. THESE FINDINGS WERE BROUGHT TO THE NOTICE OF THE APPELL ANT. THE AR STATED THAT IN THE SUBSEQUENT FINANCIAL Y EAR 08-09 SALES TO THE TUNE OF RS. 5,00,000/- WAS MADE TO M/ S BANARAS GLASS PVT. LTD. WHICH IS STATED TO BE THE GROUP CONCERN OF M/S SAS HOTELS & PROPERTIES PVT. LTD., WHICH SALE WAS ADJUSTED AGAINST THE AMOUNT DUE TO M/S SAS HOTELS & PROP ERTIES PVT. LTD. AND THE BALANCE AMOUNT OF RS. 3,50,000/- WAS WRITTEN OFF AND OFFERED FOR TAXATION IN NEXT ASSESSMENT Y EAR 2009-10. HOWEVER, THE AR COULD NOT SUBSTANTIATE THE SALE S TO M/S BANARAS GLASS PVT. LTD. AND THERE WAS ALSO NO CO NFIRMATION FROM THEM. EVEN ASSUMING SALES WAS MADE TO THEM, THE APPELLANT COULD HAVE COLLECTED THE AMOUNT IN CASH . IT IS THE PRIMARY RESPONSIBILITY OF THE APPELLANT TO PROVE THE TRANSACTIONS ENTERED IN THE BOOKS OF ACCOUNT WITH CREDIBLE EVIDENCE. IT IS SURPRISING AS TO WHY M/S SAS HOTELS & PROPERTIES PVT. LTD. WOULD ADVANCE MONEY AND DOES NOT DEMAND EITHER SALE OF FURNITURE FROM THE APPE LLANT OR RETURN OF MONEY. I HAVE NO HESITATION TO CONCLUDE THAT T HE AMOUNT OF RS. 8,50,000/- CREDITED IN THE ACCOUNT OF M/S SA S HOTELS & PROPERTIES PVT. LTD. IS THE UNEXPLAINED MONEY OF T HE APPELLANT WHICH REQUIRES TO BE ASSESSED AS DEEMED INCOM E U/S 68 WHICH PROVISIONS ARE SPECIALLY BROUGHT ON THE S TATUTE TO TACKLE THESE KIND OF SITUATIONS. THE ACTION OF THE AO IS UPHELD. 2. THE CASE WAS FIXED FOR HEARING ON 07.03.20 12, WHEN NONE ATTENDED ON BEHALF OF THE ASSESSEE. HOWEVER, THE LD. SENIOR DR EXPLAINED THE FACTS OF THE CASE AND THE IMPUGNED ORDER ON T HIS ISSUE. AS NOBODY HAS ATTENDED ON BEHALF OF THE ASSESSEE WHEN THE CAS E WAS CALLED OUT FOR HEARING ON 07.03.2012, IT IS HELD THAT IT IS NOT INTERESTED IN PURSUING THE APPEAL. IN SUCH A CIRCUMSTANCE, THE APPEAL IS LIAB LE TO BE DISMISSED IN VIEW ITA NO. 63(DEL)/2012 3 OF THE DECISIONS IN THE CASE OF CIT VS. MULTIPL AN INDIA (P) LTD., 38 ITD 320(DEL) AND ESTATE OF LATE TUKAJIRAO HOLKAR VS . CWT, 223 ITR 480 (M.P). RESPECTFULLY FOLLOWING THESE CASES, T HE APPEAL IS DISMISSED. SD/- SD/- (U.B.S. BEDI) (K.G. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER SP SATIA COPY OF THE ORDER FORWARDED TO:- VADEHRA FURNITURES PVT. LTD., NEW DELHI. ITO, WARD 17(1), NEW DELHI. CIT(A) CIT, THE D.R., ITAT, NEW DELHI. ASSISTANT REGISTRAR.