Vipul Mittal, Delhi V. ACIT, Circle-63(1), New Delhi

ITA 8813/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2858 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2016-2017
• Appeal Filed On: 13-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL
• Keywords: Opportunity of being heard; Set aside
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES F : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA.NO.8813/DEL./2019 ASSESSMENT YEAR 2016-2017 SHRI VIPUL MITTAL, 4316/16, SAINI MARKET, BAHADURGARH, SADAR BAZAR, DELHI 110 006. PAN AGBPM6134C VS. THE ACIT, CIRCLE-63(1), NEW DELHI. ( APPELLANT ) (RESPONDENT) FOR ASSESSEE : SHRI S. KRISHNAN, AND SHRI V. RAJKUMAR, ADVOCATES FOR REVENUE : SHRI AMRIT LAL, SR. DR DATE OF HEARING : 16.0 3.2020 DATE OF PRONOUNCEMENT : 16.03.2020 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-33, DELHI, DATED 28.10.219, FOR THE A.Y. 2016-2017, CHALLENGING THE ADDITION OF RS.1,42,51,085/- ON ACCOUNT OF DISALLOWANCE OF SUNDRY CREDITORS, 2 ITA.NO.8813/DEL./2019 SHRI VIPUL MITTAL, DELHI. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE IS AN INDIVIDUAL AND FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR UNDER APPEAL DECLARING INCOME OF RS.75,74,660/-. THE CASE WAS SELECTED FOR LIMITED SCRUTINY. THE A.O. NOTED THAT REASON FOR SELECTION OF THE CASE WAS THAT ASSESSEE SHOULD EXPLAIN SUNDRY CREDITORS OF RS.13.17 CRORES IN THE BOOKS OF ACCOUNT. THE A.O. ISSUED NOTICES UNDER SECTION 133(6) TO 12 PARTIES, BUT, NO RESPONSE HAVE BEEN RECEIVED FROM 04 PARTIES. THE A.O. NOTED THAT NOTICES HAVE BEEN DELIVERED TO THE FOLLOWING PARTIES/SUNDRY CREDITORS. NO. NAME AMOUNT 1. SHIV SHAKTI ENTERPRISES RS. 10,74,990/ - 2. OM PLASTIC RS. 66,46,458/ - 3. KURELE PACKAGING PVT. LTD., RS. 46,24,293/ - 4. HPCL MITTAL ENERGY LTD., RS. 19,05,344/ - TOTAL RS.1,42,51,085/ - 2.1. THE A.O. IN THE ABSENCE OF ANY EXPLANATION OF THE AFORESAID 04 SUNDRY CREDITORS, MADE ADDITION OF RS.1,42,51,085/-. 2.2. THE ASSESSEE CONTENDED BEFORE THE LD. CIT(A) THAT ALL THE TRANSACTIONS WERE CONDUCTED THROUGH BANKING 3 ITA.NO.8813/DEL./2019 SHRI VIPUL MITTAL, DELHI. CHANNEL AND PAYMENTS ARE MADE IN NEXT YEAR THROUGH BANKING CHANNEL. ASSESSEE MAINTAINED REGULAR BOOKS OF ACCOUNT. ALL PURCHASES ARE VERIFIED. THE PARTIES HAVE FILED CONFIRMATION, BUT, AFTER COMPLETION OF THE ASSESSMENT. THE LD. CIT(A), HOWEVER, DID NOT ACCEPT THE CONTENTION OF ASSESSEE AND CONFIRMED THE ADDITION AND DISMISSED THE APPEAL OF ASSESSEE. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE ARE OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE A.O. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSEE PRODUCED COMPLETE DOCUMENTARY EVIDENCES BEFORE A.O. IN RESPECT OF THE ABOVE 04 SUNDRY CREDITORS WHICH ARE TRADE CREDITORS IN NATURE. THE DOCUMENTS FILED WERE - COMPLETE LEDGER, BANK STATEMENT REFLECTING ALL PAYMENTS ARE MADE THROUGH BANKING CHANNEL, LEDGER OF CREDITORS TO SHOW PAYMENT HAVE BEEN MADE IN NEXT YEAR, ALL ENTRIES ARE VERIFIED. THE A.O. INSTEAD OF DECIDING THE ISSUE ON MERITS, MERELY CONFIRMED THE ADDITION BECAUSE THE PARTIES HAVE NOT RESPONDED TO THE NOTICE ISSUED UNDER SECTION 133(6) OF THE I.T. ACT, 1961. HE HAS SUBMITTED THAT PARTIES HAVE BEEN 4 ITA.NO.8813/DEL./2019 SHRI VIPUL MITTAL, DELHI. CONFIRMED THE TRANSACTIONS AND FILED CONFIRMATIONS, BUT, AFTER COMPLETION OF THE ASSESSMENT. THEREFORE, THIS SHOULD HAVE BEEN LOOKED INTO BY THE LD. CIT(A) AS WELL. HE HAS SUBMITTED THAT ASSESSEE IS WILLING TO PRODUCE ALL THE ABOVE 04 PARTIES BEFORE A.O. FOR VERIFICATION OF THE TRANSACTIONS AS PER LAW. 4. THE LD. D.R. ON THE OTHER HAND RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. CONSIDERING THE FACTS OF THE CASE IN THE LIGHT OF UNDERTAKING GIVEN BY THE LEARNED COUNSEL FOR THE ASSESSEE AND DOCUMENTARY EVIDENCES ON RECORD, WE ARE OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE A.O. IT IS AN ADMITTED FACT THAT ASSESSEE PRODUCED SUFFICIENT DOCUMENTARY EVIDENCES BEFORE A.O. TO PROVE THAT THE CREDITS ARE PRIMA FACIE GENUINE IN NATURE. HOWEVER, THE A.O. HAS NOT DISCUSSED ANY OF THE DOCUMENTARY EVIDENCES IN THE ASSESSMENT ORDER. THE A.O. IN THE ABSENCE OF ANY RESPONSE FROM THE SIDE OF THE SUNDRY CREDITORS WHICH ARE 04 IN NUMBER, MADE THE ADDITION. LEARNED COUNSEL FOR THE ASSESSEE HAS GIVEN UNDERTAKING BEFORE US TO PRODUCE ALL THE 5 ITA.NO.8813/DEL./2019 SHRI VIPUL MITTAL, DELHI. ABOVE 04 SUNDRY CREDITORS FOR EXAMINATION BEFORE A.O. FOR VERIFICATION OF THE TRANSACTIONS. THEREFORE, IN THESE CIRCUMSTANCES AND IN THE INTEREST OF JUSTICE, WE ARE OF THE VIEW THAT MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE A.O. WE, ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE MATTER IN ISSUE TO THE FILE OF A.O. WITH A DIRECTION TO RE-DECIDE THIS ISSUE BY CONSIDERING THE DOCUMENTARY EVIDENCES ON RECORD AND BY GIVING REASONABLE, SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE SHALL PRODUCE ALL THE AFORESAID 04 SUNDRY CREDITORS BEFORE A.O. FOR EXAMINATION BY THE A.O. AS PER LAW, FOR VERIFICATION OF THE TRANSACTIONS. THE A.O. SHALL PASS REASONED ORDER DISCUSSING THE MERITS OF THE CASE AS PER LAW. ACCORDINGLY, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE ALLOWED FOR STATISTICAL PURPOSES. 6 ITA.NO.8813/DEL./2019 SHRI VIPUL MITTAL, DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P. KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 16 TH MARCH, 2020 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT F BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.