ITO, Ghaziabad V. Smt. Anita Gupta, Ghaziabad

ITA 636/DEL/2013

• Counselvise Citation: 63620114 RSA 2013
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 01-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO. .. .636/DEL/2013 636/DEL/2013 636/DEL/2013 636/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008- -- -09 0909 09 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -1(1), 1(1), 1(1), 1(1), GHAZIABAD. GHAZIABAD. GHAZIABAD. GHAZIABAD. VS. VS. VS. VS. SMT. ANITA SMT. ANITA SMT. ANITA SMT. ANITA GUPTA, GUPTA, GUPTA, GUPTA, W/O SHRI PRAMOD GUPTA, W/O SHRI PRAMOD GUPTA, W/O SHRI PRAMOD GUPTA, W/O SHRI PRAMOD GUPTA, A AA A- -- -81, CHANDER NAGAR, 81, CHANDER NAGAR, 81, CHANDER NAGAR, 81, CHANDER NAGAR, GHAZIABAD. GHAZIABAD. GHAZIABAD. GHAZIABAD. PAN : AFVPG8914K. PAN : AFVPG8914K. PAN : AFVPG8914K. PAN : AFVPG8914K. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. Y. KAKKAR, SR.DR. RESPONDENT BY : NONE. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), GHAZIABAD DATED 7 TH NOVEMBER, 2012 FOR THE AY 2008- 09. 2. GROUND NO.1 OF THE REVENUES APPEAL READS AS UND ER:- THE LD.CIT(A) HAS ERRED IN LAW & ON FACTS BY DELET ING THE ADDITION OF RS.12,31,850/- WITHOUT APPRECIATING THE FACT THAT ASSESSEE HAS FAILED TO DISCHARGE ITS ONUS TO P ROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. 3. GROUND NO.2 IS ONLY ARGUMENTS IN SUPPORT OF ABOV E GROUND OF APPEAL. 4. AT THE TIME OF HEARING BEFORE US, NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE THE SERVICE OF NOTICE BY REGISTERE D POST. THEREFORE, WE PROCEED TO DECIDE THE APPEAL EX-PARTE QUA THE AS SESSEE. ITA-636/DEL/2013 2 5. WE HAVE HEARD THE ARGUMENTS OF LEARNED DR AND PE RUSED RELEVANT MATERIAL PLACED BEFORE US. THE ASSESSING OFFICER DISALLOWED 20% OF THE CREDITORS WITH THE FOLLOWING FINDING IN THE ASSESSMENT ORDER:- CREDITORS : AS PER RETURN OF INCOME YOU HAVE SHOWN NETT. INCOM E AT RS.227140/- AGAINST TURNOVER RS.2,13,96,205/- RE SULTANT N.P. IS ALMOST @ 1.06% WHICH IS VERY LOW FOR AN EXP ORT BUSINESS CONCERN AND COMMISSION INCOME AT RS.28,945 , INTEREST INCOME AT RS.21,917/- AND OTHER INCOME AT RS.19,13,425/-. YOU HAVE SHOWN CREDITORS FOR RS.56,90,895/- AND LOANS FOR RS.4,68,375/- (=61,59, 270/-). BUSINESS CANNOT BE RUN WITHOUT ANY CREDIT. CREDITO RS ARE AN INEVITABLE PART OF BUSINESS. YOU HAVE FAILED TO DISCHARGE YOUR ONUS OF PROVING THE CREDITORS/LOANS. IN ABSENCE OF ANY DETAILS IT IS NOT POSSIBLE TO ASCERT AIN THE IDENTITY, CREDITWORTHINESS OF THE CREDITORS/LOANS A ND GENUINENESS OF THE TRANSACTION. TO BE PRUDENT IT W OULD BE FAIR IF ONLY 20% OF THE CREDITORS/LOANS I.E. RS.12, 31,850/- ARE CONSIDERED AS NOT VERIFIABLE AND ADDED TO YOUR INCO ME. (PROPOSED ADDITION RS.12,31,850/-). 6. LEARNED CIT(A) DELETED THE ADDITION. THE REVENU E, AGGRIEVED WITH THE ORDER OF LEARNED CIT(A), IS IN APPEAL BEFO RE US. 7. AFTER CONSIDERING THE ARGUMENTS OF LEARNED DR AN D THE FACTS OF THE CASE, WE DO NOT FIND ANY JUSTIFICATION TO INTER FERE WITH THE ORDER OF LEARNED CIT(A). THE ASSESSING OFFICER HIMSELF HAS RECORDED THAT THE TURNOVER OF THE ASSESSEE IS MORE THAN ` 2 CRORES AND IN THE BUSINESS, CREDITORS ARE AN INEVITABLE PART. HOWEVER, DESPITE OBSERVING THIS, HE PROCEEDED TO ADD 20% OF THE CREDITORS/LOAN AS UNVER IFIABLE. WE ARE UNABLE TO ACCEPT ANY JUSTIFICATION FOR THE PRESUMPT ION THAT 20% OF THE CREDITORS ARE NOT VERIFIABLE. THE ADDITION FOR UNE XPLAINED CASH CREDIT, IF ANY, CAN BE MADE FOR A SPECIFIC CREDITOR AND THERE CANNOT BE A LUMP SUM OR ADHOC ADDITION OF CERTAIN PERCENTAGE OF THE CREDITORS. ITA-636/DEL/2013 3 MOREOVER, ON PAGE 19 PARAGRAPH 5.3, THE CIT(A) HAS RECORDED THE FOLLOWING FINDING:- DURING APPEAL, THE APPELLANT HAS CONTENDED THAT AL L THE UN-SECURED LOANS ARE OLD LOANS AND THE SAME IS APPA RENT FROM BALANCE SHEET AND ITS LEDGER ACCOUNTS. THUS, I AGREE THAT APPELLANTS CONTENTION THAT NO ADDITION CAN BE MADE IN RESPECT OF UN-SECURED LOANS WHICH ARE ONLY BROUGHT FORWARD BALANCES FROM EARLIER YEARS. 8. FROM THE ABOVE, IT IS EVIDENT THAT ALL THE UNSEC URED LOANS ARE OLD LOANS AND, THEREFORE, NO ADDITION CAN BE MADE IN TH IS YEAR IN RESPECT OF BROUGHT FORWARD BALANCE OF THOSE YEARS. IN VIEW OF THE ABOVE, WE UPHOLD THE ORDER OF LEARNED CIT(A) AND DISMISS THE APPEAL FILED BY THE REVENUE. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 29 TH AUGUST, 2014. SD/- SD/- ( (( (ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 29.08.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICE INCOME TAX OFFICE INCOME TAX OFFICE INCOME TAX OFFICER, R,R, R, WARD WARD WARD WARD- -- -1(1), GHAZIABAD. 1(1), GHAZIABAD. 1(1), GHAZIABAD. 1(1), GHAZIABAD. 2. RESPONDENT : SMT. ANITA GUPTA, SMT. ANITA GUPTA, SMT. ANITA GUPTA, SMT. ANITA GUPTA, W/O SHRI PRAMOD GUPTA, W/O SHRI PRAMOD GUPTA, W/O SHRI PRAMOD GUPTA, W/O SHRI PRAMOD GUPTA, A A A A- -- -81, CHANDER NAGAR, GHAZIABAD. 81, CHANDER NAGAR, GHAZIABAD. 81, CHANDER NAGAR, GHAZIABAD. 81, CHANDER NAGAR, GHAZIABAD. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR