The ACIT, Circle-6, Ahmedabad V. M/s. Megha Chem Industries, Ahmedabad

ITA 811/AHD/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2183 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 23-07-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 19-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Assessee Lawyers: SOHAN MASHRUWALA
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEM BER ACIT, CIRCLE-6, AHMEDABAD (APPELLANT) VS M/S. MEGHA CHEM INDUSTRIES PLOT NO. 8, PHASE-II, GIDC, VATVA, AHMEDABAD-382445 PAN: AAIFM1621R (RESPONDENT) REVENUE BY: SRI P.L. KUREEL, SR.D.R. ASSESSEE BY: SRI SOHAN MASHRUWALA, A .R. DATE OF HEARING : 23-07-2013 DATE OF PRONOUNCEMENT : 23-07-20 13 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE REVENUES APPEAL AGAINST THE ORDER OF LD. CIT(A)-XI AHMEDABAD DATED 31-01-2013. 2. THE ONLY EFFECTIVE GROUND TAKEN BY THE REVENUE R EADS AS UNDER:- ITA NO. 811 /AHD/2013 ASSESSMENT YEAR 2009-10 I.T.A NO.811/AHD/2013 A.Y. 2009-10 PAGE NO ACIT VS. M/S. MEGHA CHEM INDUSTRIES. 2 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 93,44,028/- ON ACCOUNT OF UNEXPLAIN ED CASH CREDIT U/S. 68 OF THE IT ACT. 3. DURING THE ASSESSMENT PROCEEDINGS ASSESSING OFFI CER OBSERVED THAT TOTAL CREDITS IN ASSESSEES BANK ACCOUNT DURING THE YEAR UNDER APPEAL ARE OF RS. 40,26,41,569/-. THE ASSESSING OFFICER MADE TOT AL CREDITS WITH THE HELP OF VARIOUS FIGURES AVAILABLE IN PROFIT AND LOSS ACCOUN T AND BALANCE SHEET. THE ASSESSING OFFICER ALSO CONSIDERED CREDITS IN RESPEC T OF SALES, NEW LOANS, CREDIT BALANCE IN THEIR BANK ACCOUNT ETC TO WORK OUT THE T OTAL CREDITS OF THE ASSESSEE. BY DOING SO, THE ASSESSING OFFICER HAD WORKED OUT T OTAL CREDITS OF RS. 39,32,97,541/-. SINCE THE CREDIT IN THE BANK ACCOU NT WERE MORE BY RS. 93,44,528/- (40,26,41,569-39,32,97,541). ACCORDING LY, THE ASSESSING OFFICER HAD MADE AN ADDITION OF THIS AMOUNT U/S 68 OF THE A CT AFTER GIVING OPPORTUNITY TO THE ASSESSEE TO RE-CONCILE THIS DIFF ERENCE. BEFORE LD. CIT(A) ASSESSEE FURNISHED RECONCILIATION OF CREDIT ENTRIES IN THE BANK ACCOUNT WHICH WAS ACCEPTED BY LD. CIT(A) AND THE ADDITION MADE BY ASSESSING OFFICER OF RS. 93,44,028/- U/S 68 WAS DELETED. 4. AGGRIEVED BY ACTION OF LD. CIT(A) NOW THE REVENU E IS IN APPEAL BEFORE US. 5. AFTER HEARING BOTH PARTIES AND PERUSING THE RECO RD, WE FIND THAT LD. CIT(A) HAS ACCEPTED THE RE-CONCILIATION OF CREDIT E NTRIES IN THE BANK ACCOUNT OF THE ASSESSEE WITHOUT MAKING ANY INQUIRY BY HIM O R BY GETTING THIS INQUIRY MADE THROUGH ASSESSING OFFICER, THEREFORE IN OUR CO NSIDERED OPINION THE RE- CONCILIATION OF CREDIT ENTRIES FURNISHED BY THE ASS ESSEE BEFORE LD. CIT(A) I.T.A NO.811/AHD/2013 A.Y. 2009-10 PAGE NO ACIT VS. M/S. MEGHA CHEM INDUSTRIES. 3 WHICH IS AVAILABLE AT PAGE NO. 30-35 OF THE PAPER B OOK REQUIRES VERIFICATION AT THE END OF THE ASSESSING OFFICER. IF AFTER VERI FICATION THE RE-CONCILIATION OF THIS CREDIT ENTRIES IN THE BANK ACCOUNT IS FOUND CO RRECT, NO ADDITION ON THIS ACCOUNT IS CALLED FOR AND IF SITUATION IS OTHERWISE ASSESSING OFFICER WILL BE FREE TO ACT AS PER LAW. WE HOLD ACCORDINGLY. 6. IN THE RESULT, REVENUES APPEAL IS ALLOWED FOR S TATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (T.R. MEENA) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 23/07/2013 AK / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '#