M/s. A. G. Conveying Systems Pvt. Ltd., Pune V. Deputy Commissioner of Income-tax,

ITA 75/PUN/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9232 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-07-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 18-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SHABANA PARVEEN
• Keywords: Additional evidence; Corroborative evidences
• Section: 133(6); 37(1); 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM . / ITA NO.75/PUN/2016 / ASSESSMENT YEAR : 2009-10 M/S. A. G. CONVEYING SYSTEMS PVT. LTD., GAT NO.322-A, PLOT NO.6 & 7, PIRANGUT, LAVALE ROAD, PUNE-412111. PAN : AACGA8534L ....... / APPELLANT / V/S. DCIT, CIRCLE-1(1), PUNE. / RESPONDENT ASSESSEE BY : SHRI S. N. PURANIK REVENUE BY : MRS. SHABANA PARVEEN / DATE OF HEARING : 30.07.2019 / DATE OF PRONOUNCEMENT : 19.09.2019 / ORDER PER D. KARUNAKARA RAO, AM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-1, PUNE DATED 24.11.2015 FOR THE ASSESSMENT YEAR 2009-10. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER :- 1. CIT(A) HAS ERRED IN CONFIRMING ADDITION MADE BY ASSESSING OFFICER ON REJECTING THE EXPENDITURE ON PURCHASES RS. 22,33,000/-. APPELLANT PRAYS FOR CANCELLATION OF SAID ADDITION. 2. CIT(A) HAS ERRED IN CONFIRMING ADDITION MADE BY ASSESSING OFFICER OF RS. 50,000/-. OUT OF WAGES, UNDER HEAD SITE EXPENSES. SAME MAY PLEASE BE ALLOWED. 3. CIT(A) HAS ERRED IN NOT ACCEPTING THE ADDITIONAL EVIDENCE SUBMITTED AS CLINCHING EVIDENCE. 4. WITHOUT PREJUDICE TO ABOVE GROUNDS, EVEN AS PER CIT(A)S OWN VERSION, IF BILLS ARE FOR SQUARE OF OUTSTANDING FROM SUPPLIER, SAID LOSS MAY PLEASE BE ALLOWED. 5. ORDERS PASSED BY LOWER AUTHORITIES ARE BAD IN LAW FOR NOT ALLOWING CROSS EXAMINATION AND NOT VERIFYING SIGNATURES CERTIFIED BY HANDWRITING EXPERT. 6. APPELLANT PRAYS FOR JUST AND EQUITABLE RELIEF. 2 ITA NO.75/PUN/2016 7. APPELLANT PRAYS TO ADD, ALTER, AMEND, MODIFY, DELETE ANY GROUND IF ANY. 3. FROM THE ABOVE EXTRACTED GROUNDS, THE (I) ADDITION OF RS.22,33,000/- ON ACCOUNT OF PURCHASES; AND (II) ADDITION OF RS.50,000/- ON ACCOUNT OF DISALLOWANCES OUT OF WAGES UNDER THE HEAD SITE EXPENSES, ARE THE MERITS RELATED ISSUE FOR ADJUDICATION. THE CIT(A)S FAILURE TO ADMIT ADDITIONAL EVIDENCES AND NOT GRANTING OF CROSS EXAMINATION OF THE PARTIES IS ANOTHER LEGAL ISSUES RAISED IN THE GROUNDS. 4. BRIEFLY STATED THE RELEVANT FACTS INCLUDE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF BULK MATERIAL HANDLING SYSTEM. THE ASSESSEE FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.82,29,736/-. THE ASSESSING OFFICER SCRUTINIZED THE RETURN AND DETERMINED THE ASSESSED INCOME AT RS.1,06,65,490/-. THE ASSESSING OFFICER MADE A COUPLE OF ADDITIONS AS PER THE DISCUSSION GIVEN IN PARA 15 OF THE ASSESSMENT ORDER. ON THE ISSUE OF ADDITION OF RS.2,02,750/-, THE ASSESSING OFFICER HELD THAT THERE ARE NO SUPPORTING EVIDENCES IN FAVOUR OF THE GENUINENESS OF THE SITE EXPENSES. ASSESSING OFFICER HELD THAT THE CLAIM OF THE ASSESSEE IS NOT FULL PROOF TRANSACTIONS AS THEY ARE MADE BY WAY OF CASH BILLS. RS.2,02,750/-, OUT OF TOTAL EXPENSES OF RS.40,54,986/-, ADDED TO THE RETURN INCOME OF THE ASSESSEE. 5. FURTHER, ON THE ISSUE OF ADDITION OF RS.22,33,000/-, THE ASSESSING OFFICER INITIATED EFFORTS TO VERIFY THE GENUINENESS OF THE PURCHASES. THE PROVISIONS OF SECTION 133(6) OF THE ACT WERE ALSO INVOKED IN RESPECT OF M/S. C.N. JAIN & SONS, THE SUPPLIERS OF THE MATERIAL. M/S. C.N. JAIN & SONS GAVE A CATEGORICAL STATEMENT DENYING THE SUPPLY OF ANY MATERIAL FOR THE SAID FINANCIAL YEAR 2007- 3 ITA NO.75/PUN/2016 08. THE STATEMENT ON OATH U/S 131 OF THE ACT OF SHRI SATISH JAIN WAS ALSO CONFIRMED AGAINST THE ASSESSEE. ACCORDINGLY, THE CLAIM OF THE ASSESSEE WAS REJECTED BY THE ASSESSING OFFICER AND DISALLOWED THE SAME U/S 37(1) OF THE ACT. THE ASSESSEE FILED THE INVOICES BEARING INVOICES NO.3/07/08 AND 4/07/08 COMMONLY DATED 31.03.2008 IN THIS REGARD. IT IS A CLAIM OF THE ASSESSEE THAT THE SAID INVOICES RECEIVED BY THE ASSESSEE ONLY ON 31.03.2008. THE CIT(A) EXAMINED THE SAID INVOICES AND CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER. 6. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US WITH THE ABOVE EXTRACTED GROUNDS. 7. BEFORE US, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THESE ISSUES NEED TO BE REMANDED TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO AUDIT THE ADDITIONAL EVIDENCES. THE LD. COUNSEL MENTIONED THAT THE QUESTIONS FRAMED BY THE ASSESSING OFFICER DURING THE PROCEEDINGS BEFORE HIM U/S 131 OF THE ACT SHOULD BE RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION. LD. COUNSEL ALSO SEEKS PROPER DIRECTION TO THE ASSESSING OFFICER FOR WANT OF A SPEAKING ORDER AND ALSO PROVIDING OF BENEFIT OF CROSS-EXAMINATION OF THE SUPPLIERS. 8. ON THE OTHER HAND, LD. DR FOR THE REVENUE RELIED HEAVILY ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). 9. ON HEARING BOTH THE SIDES AND CONSIDERING THE FACTS, WE FIND THERE IS SOME CONFUSION IN THE AMOUNT MENTIONED IN CONCERNED INVOICES QUA FOR THE RELEVANT FINANCIAL YEAR IN WHICH THE PURCHASES WERE MADE FROM M/S. C.N. JAIN & SONS. IT IS IN THE INTEREST OF ADMINISTRATION OF JUSTICE TO ADMIT THE SAID 4 ITA NO.75/PUN/2016 ADDITIONAL EVIDENCES. IT IS THE DUTY OF THE ASSESSING OFFICER TO GRANT THE BENEFIT OF CROSS-EXAMINATION, WHEREVER NEEDED AS PER LAW. CONSIDERING THE SAME, IN OUR VIEW, THERE IS REQUIREMENT OF PASSING A SPEAKING ORDER AT THE END OF THE ASSESSING OFFICER IN ALL THE MATTERS UNDER CONSIDERATION. THUS, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 10. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 19 TH DAY OF SEPTEMBER, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (D. KARUNAKARA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 19 TH SEPTEMBER, 2019 SUJEET / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-1, PUNE. 4. THE PR. CCIT, PUNE. 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.