The ITO, Ward-5(1), Ahmedabad V. Nirchem Soaps & Detergents Pvt.Ltd., Ahmedabad

ITA 698/AHD/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60436 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 17-05-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 05-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESHCHANDRA SHARMA
• Assessee Lawyers: H C SHAH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI D.K.TYAGI , JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER ITA NO. 698/AHD/2010 ASSESSMENT YEAR :2006-07 ITO, WARD.5(1), AHMEDABAD V/S . NIRCHEM SOAPS & DETERGENTS P. LTD. NIRMA HOUSE, ASHRAM ROAD, AHMEDABAD PAN NO. AA ACN 3729G (APPELLANT) .. (RESPONDENT) BY APPELLANT SHRI DINESH CHANDRA SHARMA, SR.D.R. /BY RESPONDENT SHRI H.C. SHAH, A.R. /DATE OF HEARING 17.05.2012 /DATE OF PRONOUNCEMENT 25.05.2012 O R D E R PER : D.K.TYAGI, JUDICIAL MEMBER THIS IS A REVENUES APPEAL DIRECTED AGAINST THE OR DER OF LD. CIT (A)-XI, AHMEDABAD, DATED 29.12.2009 FOR ASSESSMENT YEAR 200 6-07. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED THIS RETURN OF INCOME DECLARING INCOME OF RS. 19,040/-. THE ASSES SMENT WAS COMPLETED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE A CT BY DETERMINING THAT ASSESSEES TOTAL INCOME IS RS. 25,19,040/- THE ADD ITION OF RS. 25 LACS WAS ITA NO. 698/AHD/2010 A.Y.2006-07 PAGE 2 MADE BY ASSESSING OFFICER ON ACCOUNT OF NON REFLECT ION OF INVESTMENT IN ACCOUNTS. 3. AGGRIEVED BY THIS ACTION OF ASSESSING OFFICER, T HE ASSESSEE WENT IN APPEAL BEFORE THE LD. CIT(A). BEFORE HIM, THE FOLL OWING WRITTEN SUBMISSIONS WERE FILED:- VIDE DISCUSSION AT PARA-3 OF THE ASSESSMENT ORDER, LD. AO MADE ADDITION OF RS. 25,00,000/- ON ACCOUNT OF NON REFLE CTION OF INVESTMENT IN ACCOUNTS. THE LD. A.O. OBSERVED THAT IN CASS IT RE VEALED THAT APPELLANT COMPANY HAD RECEIVED INTEREST OTHER THAN SECURITIES OF RS.3,23,750/- FROM TATA FINANCE LTD. APPELLANT MADE SUBMISSION V IDE LETTERS DATED 28.11.08, 13.12.08 AND 22.12.08. COPY ENCLOSED ANN EXURE: A TO C. THE LD. AO HAS CONSIDERED FIRST SUBMISSION VIDE LET TER DATED 28.11.08. HOWEVER, THE LD. A.O. HAS NOT CONSIDERED REMAINING TWO SUBMISSIONS VIDE LETTERS DATED 13.12.08 AND 22.12.08. THE LD. A.O. MADE ADDITION OF RS. 25,00,00/- ON THE GROUND THAT INVESTMENT IS NOT REFLECTED IN THE BALANCE SHEET. FOR THIS SOLITARY REASON, HE MADE THE ADDITION AS UNDISCLOSED INVESTM ENT U/S. 69 OF I.T.ACT. IN THIS RESPECT WE HUMBLY WISH TO SUBMIT AS UNDER:- (1) APPELLANT IS A MEMBER OF NIRCHEM ASSOCIATES. N IRCHEM ASSOCIATES MADE INVESTMENT OF RS. 25,00,000/- IN THE TATA FINA NCE LTD. VIDE CHEQUE NO. 708708 DATED 22.03.00. (2) NIRCHAM ASSOCIATE IS ASSESSED TO INCOME-TAX AT PAN AAACM 4036 G (3) INTEREST RS. 2,52,100 WAS RECEIVED AND OFFERED FOR TAXATION BY NIRCHEM ASSOCIATES. (4) INVESTMENT WAS MADE ON 23.3.00 BY NIRCHEM ASSOC IATES WHEREAS ADDITION WAS MADE IN THE CASE OF APPELLANT IN A.Y. 2006-07. (5) THE CONFIRMATION OF INVESTMENT BY NIRCHEM ASSOC IATES WAS GIVEN TO LD. AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS. (6) THE LD. A.O. HAS NOT CONSIDERED THE SUBMISSION OF THE APPELLANT VIDE LETTERS DATED 13.12.08 AND 22.12.08. HENCE, HAVING EXPLAINED THE INVESTMENT MADE BY NIRC HEM ASSOCIATES, THE ADDITION U/S. 69 CANNOT BE MADE IN THE CASE OF APPELLANT. IT IS FURTHER SUBMITTED THAT INVESTMENT WAS MADE ON 23.3.00 BY NIRCHEM ASSOCIATES, THE ADDITION CANNOT BE MADE IN A.Y. 200 6-07. ITA NO. 698/AHD/2010 A.Y.2006-07 PAGE 3 IN VIEW OF THE ABOVE, THE ADDITION OF RS. 25,00,000 /- MAY KINDLY BE DELETED. 4. AFTER TAKING INTO CONSIDERATION THESE SUBMISSION S BY THE ASSESSEE, LD. CIT (A) DIRECTED THE ASSESSING OFFICER TO DELETE TH IS ADDITION OF RS. 25 LACS. 5. BEING AGGRIEVED BY THIS ORDER OF LD. CIT(A), NOW , THE REVENUE IS IN APPEAL BEFORE US. 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORDS, WE FIND THAT THE ASSESSEE COMPANY IS A MEMBER OF NIRCHEM ASSOCIATES, AN AOP WHICH IS ASSESSED TO INCOME TAX SEPARATELY. ON 23 RD MARCH, 2000 INVESTMENT OF RS. 25 LACS, WAS MADE BY NIRCHEM ASSO CIATES IN THE TATA FINANCE LIMITED THROUGH BANKING CHANNELS. INT EREST OF RS. 2,52,100/-, WAS RECEIVED BY NIRCHEM ASSOCIATES AND WAS ALSO OFFERED FOR TAXATION. THE CONFIRMATION OF INVESTME NT BY NIRCHEM ASSOCIATES WAS ALSO GIVEN TO THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE ASSESSING OFF ICER IGNORING THESE UNDISPUTED FACTS HAS MADE THIS ADDITION OF RS . 25 LACS IN THE CASE OF ASSESSEE WHICH ACCORDING TO US, WAS NOT WAR RANTED AT ALL AND LD. CIT (A), HAS RIGHTLY DELETED THIS ADDITION. THE ORDER PASSED BY HIM IS HEREBY UPHELD. 7. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE. ITA NO. 698/AHD/2010 A.Y.2006-07 PAGE 4 SD/- SD/- (T.R. MEENA) ( D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY S.K.SINHA ! ! ! ! '! '! '! '! / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. '(' ) * / CONCERNED CIT 4. *- / CIT (A) 5. !./ ), ) , 12( / DR, ITAT, AHMEDABAD 6. /45 67 / GUARD FILE. BY ORDER/ , 8/ 1 ': ) , 12( ; STRENGTHEN PREPARATION & DELIVERY OF ORDERS IN THE ITAT 1) DATE OF TAKING DICTATION 18.05.2012 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE XXXX 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 22.05.2012 4) DATE OF CORRECTION 22.05.2012 5) DATE OF FURTHER CORRECTION 6) DATE OF INITIAL SIGN BY MEMBERS 25.05.2012 7) ORDER UPLOADED ON 25.05.2012 8) ORIGINAL DICTATION PAD HAS BEEN ENCLOSED IN THIS FILE YES 9) FINAL ORDER AND 2 ND COPY SEND TO BENCH CLERK ON 25.05.2012