M/s. Shiv Sunder Grit Udyog, Haryana V. ITO, Narnaul

ITA 844/DEL/2015

• Counselvise Citation: 84420114 RSA 2015
• Duration Of Justice: 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 20-10-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 12-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - 2 , NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 844 /DEL/201 5 AY: 20 10 - 11 M/S SHIV SUNDER GRIT UDYOG VS. ITO, WARD 1 C/O SH HR GARG, ADV. NARNAUL PUL BAZAR, NARNAUL HARYANA PAN: AADFS 8328 N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NAVIN GUPTA, ADV. RESPONDENT BY : SH. MK JAIN , SR.D.R. ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER DATED 22.12.2014 OF LD.CIT(A), ROHTAK PERTAINING TO THE ASSESSMENT YEAR (A.Y.) 20 10 - 11. THE EFFECTIVE GROUND OF APPEAL IS GROUND NO.2 WHICH READS AS UNDER. 2. THAT THE LD.CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.1,71,627/ - MADE BY THE LD.A.O. BY TREATING THE SUNDRY CREDITORS AS BOG US. 2. AFTER HEARING RIVAL CONTENTIONS , I FIND THAT THE ASSESSEE HAS FURNISHED CONFIRMATION OF BALANCES OF SUNDRY CREDITORS TO THE TUNE OF RS.27,46,791/ - . COPIES OF ACCOUNTS AND CONFIRMATIONS WERE NOT FURNISHED ONLY IN THE CASE OF CREDITORS TO THE TU NE OF RS.1,71,627/ - . BUT THE ASSESSEE SUBMITTED THAT THESE CREDITORS LISTED OUT AT PAGE 2 OF THE ASSESSMENT ORDER, ARE LABOURERS AND TRUCK OWNERS, WHO HAVE BEEN PAID THESE AMOUNTS IN THE IMMEDIATELY SUCCEEDING FINANCIAL YEAR AND THAT CONFIRMATIONS CANNOT BE OBTAINED FROM THEM, AS THEY DO NOT HAVE ANY FIXED ADDRESSES. IN MY VIEW THIS EXPLANATION ITA NO.844/DEL/2015 A.Y. 2010 - 11 SHIV SUNDER GRIT UDYOG 2 HAS TO BE UPHELD, THE CONCLUSION OF THE LD.CIT (A) THAT THESE AMOUNTS ARE BOGUS AND FICTITIOUS LIABILITIES IS NOT CORRECT . WHEN THE LIABILITY IN QUESTION HAS BEE N DISCHARGED IN THE SUBSEQUENT A.Y., NO ADDITION CAN BE MADE UNLESS THE EVIDENCE IS GATHERED TO THE CONTRARY BY THE REVENUE. 3. IN THE RESULT ASSESSEE S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH NOVEMBER ,2015. SD/ - (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 06 TH NOV. , 2015 *MANGA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR