VAG Commodities (P) Ltd., Delhi V. ITO, Ward- 26(1), New Delhi

ITA 8035/DEL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4576 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 18-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SATYAM SETHI
• Keywords: TDS
• Section: 131; 68; 143(3); 133(6); 20

Judgement Text

1 , , IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI !' BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT $ / ITA NO.8035/DEL/2018 % & & / ASSESSMENT YEAR 2015-16 VAG COMMODITIES (P) LTD., D-42, SOUTH EXTENSION, PART-I NEW DELHI PAN-AAACT3578R .......... '( /APPELLANT VS ITO, WARD-26(1), NEW DELHI . )*'( / RESPONDENT '(+,- / APPELLANT BY : SH. SATYAM SETHI, ADVOCATE AND SHRI. ATRA TRANA PANDA, ADVOCATE )*'(+,- / RESPONDENT BY : SH. PRADEEP SINGH GAUTAM, SR. D R +./ / DATE OF HEARING : 14.01.2020 01 +./ / DATE OF PRONOUNCEMENT: 21.02.2020 -2 / ORDER PER SUSHMA CHOWLA, VP THE PRESENT APPEAL FILED BY ASSESSEE IS AGAINST ORD ER OF CIT(A)-9, NEW DELHI DATED 16.10.2018 RELATING TO ASSESSMENT YEAR 2015-16 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE ACT. 2. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST ADDITION OF RS. 20 LACS U/S 68 OF THE ACT. ITA NO.8035/DEL/2018 2 3. BRIEFLY IN THE FACTS OF THE CASE, THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THE ASSESSEE TO HAVE R ECEIVED RS. 20 LAC AS UNSECURED LOAN FROM M/S PRASIDH FINCAP LTD. NOTICE UNDER SECTION 133(6) OF THE ACT DATED 27.09.2017 WAS ISSUED TO M/S PRASI DH FINCAP LTD., TO ASCERTAIN THE GENUINENESS AND CORRECTNESS OF THE TR ANSACTION. THE NOTICE UNDER SECTION 133(6) OF THE ACT WAS RECEIVED BACK U NSERVED WITH THE REMARKS NO SUCH FIRM AT THIS ADDRESS. 4. THE ASSESSEE THUS WAS ISSUED A SHOW CAUSE NOTICE TO PRODUCE THE DIRECTOR OF THE SAID CONCERN. IN REPLY, THE ASSESSE E SUBMITTED DOCUMENTS RELATING TO THE SAID CONCERN IN THE DAK. HOWEVER, T HE DIRECTOR WAS NOT PRODUCED FOR VERIFICATION. THE AO FURTHER ALLOWED O PPORTUNITY TO THE ASSESSEE TO PROVIDE CONFIRMATION FROM THE PARTY IND EPENDENTLY. HOWEVER, NO SUCH EVIDENCES WERE FURNISHED. HENCE THE AO MAD E THE ADDITION UNDER SECTION 68 OF THE ACT AT RS. 20 LAC. THE CIT( A) UPHELD THE ORDER OF AO, AGAINST WHICH THE ASSESSEE IS IN APPEAL. 5. THE LEARNED AR FOR THE ASSESSEE POINTED OUT THAT THE ASSESSEE HAD RECEIVED RS. 10 LAC ON 19.05.2014 AND ANOTHER RS. 1 0 LAC ON 20.05.2014. THE CONFIRMATION OF THE SAID PARTY WAS FILED ALONGWITH THE PROOF OF TAX DEDUCTION AT SOURCE ON THE INTEREST DU E TO M/S PRASIDH FINCAP LTD,. THE COPY OF THE TDS CERTIFICATE HAS AL SO BEEN FILED ON RECORD. THE SAID AMOUNT WAS RETURNED BACK TO THE SAID CONCE RN AND ALL THE TRANSACTIONS WERE THROUGH BANKING CHANNEL. THE LEAR NED AR FOR THE ASSESSEE FAIRLY ADMITTED THAT THE AO MAY GIVE NOTIC E UNDER SECTION 131 OF THE ACT TO THE DIRECTOR OF THE ASSESSEE COMPANY AS THE AMOUNT HAS BEEN REPAID AND THE SAID PARTY IS NOT COOPERATING. ITA NO.8035/DEL/2018 3 6. THE LEARNED DR FOR THE REVENUE PLACED RELIANCE O N THE ORDERS OF THE AUTHORITIES BELOW. 7. ON THE PERUSAL OF RECORD AND AFTER HEARING BOTH THE AUTHORIZED REPRESENTATIVES, THE ISSUE WHICH ARISES IN THE PRES ENT APPEAL IS AGAINST THE ADDITION MADE UNDER SECTION 68 OF THE ACT AT RS . 20 LAC. THE SAID ADDITION IS MADE ON ACCOUNT OF LOAN RECEIVED BY THE ASSESSEE DURING THE YEAR AND WHERE THE ASSESSEE HAD FAILED TO PRODUCE T HE DIRECTOR OF THE SAID CONCERN, THE AMOUNT WAS ADDED AS UNDISCLOSED INCOME OF THE ASSESSEE. UNDER SECTION 68 OF THE ACT, THE ONUS IS UPON THE A SSESSEE TO ESTABLISH THE IDENTITY AND CREDITWORTHINESS OF THE PERSON AND ALSO TO ESTABLISH THE GENUINENESS OF THE TRANSACTION. 8. THE LEARNED AR FOR THE ASSESSEE HAS POINTED OUT THAT THE SAID LOAN WHICH WAS RECEIVED BY THE ASSESSEE HAD BEEN REPAID AND ALSO POINTED OUT THAT ON THE SAID LOAN, INTEREST WAS PAID ON WHICH T AX WAS DEDUCTED AT SOURCE AND DEPOSITED IN THE ACCOUNT OF DEPARTMENT. NECESSARY EVIDENCES IN THIS REGARD HAVE BEEN FILED. HOWEVER THE INITIAL ONUS UPON THE ASSESSEE HAS NOT BEEN DISCHARGED. THE AO HAD ISSUED NOTICE U NDER SECTION 133(6) OF THE ACT WHICH REMAINED UNCOMPLIED. ACCORDINGLY, IT IS DEEMED FIT THAT THE MATTER BE RESTORED BACK TO THE AO WHO SHALL ISS UE NOTICE UNDER SECTION 131 OF THE ACT TO THE DIRECTOR OF THE M/S P RASIDH FINCAP LTD,. THE ASSESSEE IS THUS DIRECTED TO DISCHARGE THE ONUS CAS T UPON IT UNDER SECTION 68 OF THE ACT. THE ASSESSING OFFICER SHALL DECIDE T HE ISSUE IN ACCORDANCE WITH LAW. THE GROUNDS OF APPEAL RAISED BY THE ASSE SSEE ARE THUS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.8035/DEL/2018 4 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST FEBRUARY, 2020. SD/- (SUSHMA CHOWLA) !' / VICE PRESIDENT / DATED : 21 ST FEB, 2020 SH -2+)%.345-4.6 COPY OF THE ORDER IS FORWARDED TO : 1. '( / THE APPELLANT 2. )*'( / THE RESPONDENT 3. 7. 8 9 / THE CIT(A) 4. : 7. / THE PR. CIT 5. 6. 4;<)%.% / DR, ITAT, DELHI <=&>6 GUARD FILE. -2 / BY ORDER , *4.)%. // TRUE COPY // ? @ABC , ASSISTANT REGISTRAR, ITAT, DELHI