Durga Ferrous P.Ltd, New Delhi V. ITO, Ward-7(4), New Delhi

ITA 672/DEL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9071 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 31-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Accommodation entries
• Section: 147; 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SH. R. K. PANDA, ACCOUNTANT MEMBER ITA NO.672/DEL/2019 ASSESSMENT YEAR: 2008-09 DURGA FERROUS P. LTD. AN-2, SHALIMAR BAGH, NEW DELHI PAN NO. AABCD6942Q VS INCOME TAX OFFICER WARD 7 (4) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SHRI S. L. ANURAGI, SR. DR DATE OF HEARING: 04/07/2019 DATE OF PRONOUNCEMENT: 09/07/2019 ORDER PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 21.12.2018 OF THE CIT(A)-34, NEW DELHI RELATING TO A. Y. 2008-09. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE T IME OF HEARING. IT WAS SEEN THAT THE NOTICE ISSUED BY THE REGISTRY THROUGH RPAD WAS RETURNED BY THE POSTAL AUTHORITIES WITH TH E REMARKS NO SUCH ADDRESS. THE ASSESSEE HAS NOT TAKEN ANY STEPS TO INTIMATE THE CHANGED ADDRESS, IF ANY. THEREFORE, I PROCEED TO PAGE | 2 DECIDE THIS APPEAL ON THE BASIS OF MATERIAL AVAILAB LE ON RECORD AND AFTER HEARING THE LD. DR. 3. THE ASSESSEE IN THE VARIOUS GROUNDS OF APPEAL HA S CHALLENGED THE ORDER OF THE CIT(A) IN UPHOLDING THE ASSESSMENT ORDER PASSED U/S. 143 (3)/ 147 AND THEREBY SUSTAINI NG THE VARIOUS ADDITIONS MADE BY THE ASSESSING OFFICER U/S . 68 OF THE IT ACT. 4. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A COMPANY AND FILED ITS RETURN OF INCOME ON 17.09.20 08 DECLARING TOTAL INCOME OF RS.2,06,052/-. ON THE BASIS OF INFO RMATION RECEIVED FROM THE INVESTIGATION WING THAT THE ASSES SEE HAS RECEIVED ACCOMMODATION ENTRIES WORTH RS.15 LACS FRO M SHELL COMPANIES NAMELY M/S. VICTORY SOFTWARE PRIVATE LIMI TED AND M/S. MEGA TOP PROMOTERS PVT. LTD, RUN BY SH. SUREND RA KUMAR JAIN AND SH. VIRENDRA KUMAR JAIN THROUGH THEIR EMPL OYEES DURING THE FINANCIAL YEAR 2007-08 AND ON THE BASIS OF POST SEARCH ENQUIRY, THE ASSESSING OFFICER INITIATED PROCEEDING S U/S. 147 OF THE ACT AND ISSUED NOTICE U/S. 148 OF THE IT ACT. IN RESPONSE TO THE NOTICE U/S. 148 IT WAS SUBMITTED BY THE ASSESSE E THAT THE RETURN ALREADY FILED U/S.139 (1) MAY BE TREATED AS RETURN IN RESPONSE TO NOTICE U/S.148 OF THE IT ACT. THE ASSES SING OFFICER THEREAFTER ISSUED STATUTORY NOTICES TO WHICH THE AS SESSEE COMPLIED. SINCE THE ASSESSEE COULD NOT EXPLAIN SAT ISFACTORILY THE IDENTITY AND CREDIT WORTHINESS OF THE LOAN CREDITOR S AND GENUINESS OF THE TRANSACTIONS, THE ASSESSING OFFICER INVOKING THE PROVISIONS OF SECTION 68 OF THE IT ACT MADE ADDITION OF RS.15 LACS TO THE TOTAL INCOME OF THE ASSESSEE AND DETERMINED THE TAXABLE I NCOME AT PAGE | 3 RS.12,33,948/- AFTER GIVING CREDIT TO THE LOSS SUFF ERED BY THE ASSESSEE. 5. IN APPEAL THE LD. CIT(A) UPHELD THE ACTION OF TH E ASSESSING OFFICER. 6. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 7. I HAVE HEARD THE ARGUMENTS ADVANCED BY LD. DR AN D PERUSED THE MATERIAL AVAILABLE ON RECORD. I FIND D UE TO NON SUBSTANTIATION OF THE IDENTITY AND CREDIT WORTHINES S OF THE INVESTOR COMPANIES AND THE GENUINENESS OF THE TRANS ACTIONS, THE ASSESSING OFFICER, INVOKING THE PROVISIONS OF SECTI ON 68 OF THE IT ACT, HAS MADE ADDITION OF RS.15 LACS TO THE TOTAL L OSS DECLARED BY THE ASSESSEE. I FIND THE LD. CIT(A) RELYING ON VARI OUS DECISIONS HAS UPHELD THE ACTION OF THE ASSESSING OFFICER ON THE G ROUND THAT THE ASSESSEE COULD NOT DISCHARGE THE INGREDIENTS OF SEC TION 68 OF THE IT ACT. AFTER GOING THROUGH THE ORDER OF THE CIT(A ) I FIND THE ORDER IS A REASONED ONE AND DOES NOT CALL FOR ANY INTERFE RENCE. I, THEREFORE, UPHOLD THE ORDER OF THE CIT(A). THE VAR IOUS GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09.07.2019. SD/- (R.K PANDA) ACCOUNTANT MEMBER *NEHA* DATE:- 09.07.2019 PAGE | 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 04.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 05.07.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 09.07.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER