APARAJITA BOTTLERS PVT. LTD., Jaipur V. DCIT, Jaipur

ITA 695/JPR/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1873 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 01-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA CIT DR DHK
• Section: 153A; 132

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES , JAIPUR JH HKKXPUN] YS[KK LNL; ,O JH DQY HKKJR] U;KF;D L NL; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI KUL BHAR AT, JM VK;DJ VIHY LA-@ ITA NO. 695/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR: 2006-07 M/S. APARAJITA BOTTLERS PVT. LTD A-3, MOTI LAL ATAL ROAD, JAIPUR CUKE VS. THE DCIT CENTRAL CIRCLE 1, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAECA 8331 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI RAJEEV SOGANI, CA JKTLO DH VKSJ LS@ REVENUE BY:SHRI VARINDER MEHTA, CIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 07/09/2017 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 1/12/2017 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-4, JAIPUR DATED 25-04-2016 FOR THE ASSESSMEN T YEAR 2006-07 RAISING FOLLOWING GROUNDS. 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE SEARCH PROCEEDINGS CONDUCTED U/S 132 IS PATENTLY ILLEGAL AND CONSEQUEN TLY THE ASSESSMENT MADE U/S 153A IS ILLEGAL, WITHOUT ANY BASIS AND BEYOND SCOPE. REL IEF MAY PLEASE BE GRANTED BY HOLDING THE SEARCH PROCEEDINGS ILLEGAL AND CONSEQUE NTLY QUASHING THE ASSESSMENT PROCEEDING U/S 153A BEING VOID AND AB INITO. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 1,83,000/- U/S 68 OF THE I.T. ACT, 1961. THE ACTION OF THE LD. CIT(A) IS ILLEGAL, UNJUSTIFIED, A RBITRARY AND AGAINST THE FACTS OF THE CASE. RELIEF MAY PLEASE BE GRANTED BY DELETING THE SAID ADDITION OF RS. 1,83,000/- ITA NO. 695/JP/2016 M/S. APARAJITA BOTTLERS PV T. LTD VS DCIT, CENTRAL CIRCLE-1, JAIPUR 2 2.1 DURING THE COURSE OF HEARING, THE LD.AR OF THE ASSESSEE HAS NOT PRESSED THE GROUND NO. 1.HENCE, THE SAME IS DISMISS ED BEING NOT PRESSED. 3.1 APROPOS GROUND NO. 2, THE FACTS AS EMERGES FROM THE ORDER OF THE LD. CIT(A) IS AS UNDER:- 3.1.2 I HAVE DULY CONSIDERED THE ASSESSEE'S SUB MISSION AND ALSO CAREFULLY GONE THROUGH THE ASSESSMENT ORDER. I HAVE ALSO TAKEN A NOTE OF FACTUAL MATRIX OF THE CASE AS WELL AS CASE LAWS RELIED UPON . DURING THE FY ASSESSEE CLAIMED TO HAVE RECEIVED TOTAL CASH AMOUNTING TO RS. 1,83,0 00/- (EACH RECEIPT BELOW RS. 20,000/-) FROM 10 PERSONS AND THESE ENTRIES WERE RE VERSED ON 31-03-2007 BY MAKING CASH PAYMENT TO PERSONS CONCERNED. AO HAS GIVEN HI S DETAILED FINDING IN PARA 6,7,8 & 9 (PAGE 2 TO 3) OF THE ASSESSMENT ORDER. DURING T HE APPELLATE PROCEEDINGS, ASSESSEE HAS NOT CONTROVERTED AOS FINDINGS AND SIMPLY RELIE D ON THE FACTS THAT ALL THESE PERSONS ARE INCOME TAX ASSESSEES. IN SUPPORT OF ITS CLAIM, LEDGER COPIES OF ACCOUNTS MAINTAINED BY ASSESSEE HAVE ALSO BEEN SUBMITTED. SH RI O.P. VYAS , A.R. HAS SUBMITTED THAT THE ASSESSEE'S BOTTLING PLANT IS SIT UATED AT BANGRU (30 KM AWAY FROM JAIPUR) WHERE BANKING FACILITIES ARE NOT AVAILABLE , ACCORDINGLY TO COPE UP WITH THE CASH SHORTAGE, THEY WERE APPROACHED AND MONEY TAKEN WAS IN CASH WHICH WAS SUBSEQUENTLY REFUNDED BACK ON 31-03-2017. BUT THE R EPLY/ JUSTIFICATION IS NOT VERY CONVINCING. IN VIEW OF FACTS AND CIRCUMSTANCES OF THE CASE, ADD ITION MADE BY THE AO IS HEREBY SUSTAINED. ASSESSEE'S APPEAL STANDS DISMISSE D. 3.2 DURING THE COURSE OF HEARING, THE LD.AR OF THE ASSE SSEE PRAYED FOR DELETION OF ADDITION CONFIRMED BY THE LD. CIT(A) AM OUNTING TO RS. 1,83,000/-U/S 68 OF THE I.T. ACT, 1961. 3.3 ON THE OTHER HAND, THE LD. DR RELIED ON THE ORD ERS OF THE AUTHORITIES BELOW. 3.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. BRIEF FACTS OF THE CASE ARE TH AT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING PACKED DRINKING WA TER AND SODA WATER. ITA NO. 695/JP/2016 M/S. APARAJITA BOTTLERS PV T. LTD VS DCIT, CENTRAL CIRCLE-1, JAIPUR 3 DURING THE COURSE OF ASSESSMENT PROCEEDING, THE AO NOTED FROM THE BALANCE SHEET THAT THE ASSESSEE HAD TAKEN CASH CRED ITS FROM THE FOLLOWING PERSONS DURING THE YEAR UNDER CONSIDERATION. S.N. NAME OF THE CREDITORS AMOUNT 1. SHRI AMIT CHATURVEDI RS. 18,000/- 2. SHRI ANIL KUMAR SAXENA RS. 19,000/- 3. SHRI D.P. KHANDELWAL RS. 18,000/- 4. SHRI HARI NARYAN RS. 18,000/- 5. SHRI HARSH RAJ SANAKHLA RS. 18,000/- 6. SHRI MAHESH KHANDELWAL RS. 18,000/- 7. SHRI ROOP SINGH RS. 19,000/- 8. SHRI SADHU RAM RS. 18,000/- 9. SHRI SHISHPAL RS. 19,000/- 10. SMT. SARITA SANKHLA RS. 18,000/- TOTAL RS. 1,83,000/- IN ORDER TO VERIFY THE IDENTITY, GENUINENESS AND CR EDIT WORTHINESS OF THE UNSECURED LOANS, THE AO REQUIRED THE ASSESSEE TO FU RNISH THE CONFIRMATIONS ALONGWITH A COPY OF BANK ACCOUNT OF T HE UNSECURED LOAN. THE AO OBSERVED THAT THE ABOVE INFORMATION WAS SUPP LIED IN PART AND THUS THE ASSESSEE HAD NOT DISCHARGED HIS PRIMARY ON US OF PROVING THE CREDITWORTHINESS OF THE CREDITORS AND GENUINENESS O F TRANSACTION. IN THIS SITUATION, THE AO ADDED THE SUM OF RS. 1.83 LACS TO THE INCOME OF THE ASSESSEE U/S 68 OF THE ACT. IN FIRST APPEAL, THE LD . CIT(A) HAS CONFIRMED THE ACTION OF THE AO WITH THE OBSERVATION THAT THE ASSESSEE HAS NOT CONTROVERTED THE FINDINGS OF THE AO AS TO THE ADDIT ION OF RS. 1.83 LACS U/S 68 OF THE ACT. BEFORE US, IT IS NOTED THAT THE ARGU MENTS MADE BY THE LD.AR ITA NO. 695/JP/2016 M/S. APARAJITA BOTTLERS PV T. LTD VS DCIT, CENTRAL CIRCLE-1, JAIPUR 4 OF THE ASSESSEE WITH REGARD TO THE ADDITION OF RS. 1.83 LACS U/S 68 OF THE ACT WAS NOT CONVINCING AND HE COULD NOT CONTROVERT THE FINDINGS OF THE LOWER AUTHORITIES. TAKING INTO CONSIDERATION THE FA CTS AND CIRCUMSTANCES OF THE CASE, WE FIND NO REASON TO INTERFERE WITH TH E ORDER OF THE LD. CIT(A) ON THE ISSUE IN QUESTION. THUS GROUND NO. 2 OF THE ASSESSEE IS DISMISSED. 4.0 IN THE RESULT, THE APPEAL FILED BY THE ASSESS EE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 -12-201 7. SD/- SD/- DQY HKKJR HKKXPUN (KUL BHARAT) ( BHAGCHAND) U;KF;D LNL; / JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 1/12/ 2017 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT-M/S. APARAJITA BOTTLERS PVT. LTD, JA IPUR 2. IZR;FKHZ@ THE RESPONDENT- THE DCIT, CENTRAL CIRCLE-1 , JAIP UR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 695/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR