Gurgaon Polyplastics Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 929/DEL/2012

• Counselvise Citation: 92920114 RSA 2012
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 25-04-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 24-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH C NEW DELHI) BEFORE SHRI RAJPAL YADAV AND SHRI K.D. RANJAN ITA NO. 929/DEL/2012 ASSESSMENT YEAR: 2006-07 GURGAON POLYPLASTICS PVT. LTD., VS. INCOME-TAX OFF ICER, 26/9, INDUSTRIAL AREA, WARD 12(3), NAJAFGARH ROAD, NEW DELHI. NEW DELHI. (PAN: AACCG4822B) (APPELLANT) (RESPONDENT) APPELLANT BY: MS. RANO JAIN , CA RESPONDENT BY: SHRI SAT PAL SIN GH, SR. DR DATE OF HEARING : 25.04.2012 DATE OF PRONOUNCEMENT : 25.04.2012 ORDER PER RAJPAL YADAV: JUDICIAL MEMBER THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LEARNED COMMISSIONER DATED 23.12.2011 PASSED FOR ASSESSMENT YEAR 2006-07. THE ASSESSEE HAS TAKEN SIX GROUNDS OF APPEAL, HOWEVER, ITS GRIEVANCE REVOLVES AROUND A SINGLE ISSUE I.E. LEARNED CIT(APPEALS) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 8 LACS BY REJECTING ITS APPEAL IN L IMINE. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED ITS RETURN OF INCOME ON 12.12.2006 DECLARING AN INCOME OF RS.2,41 ,006. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT. ON S CRUTINY OF THE ACCOUNTS, IT 2 REVEALED TO THE ASSESSING OFFICER THAT THE ASSESSEE COMPANY HAS INTRODUCED FRESH UNSECURED LOAN OF RS.52,23,108. THE ASSESSEE COMPANY HAS SHOWN CREDIT OF RS.22,50,000 AS UNSECURED LOANS AGAINST T HE NAME OF M/S. POLY PLASTICS. ASSESSING OFFICER CALLED FOR A CONFIRMATI ON FROM THIS CREDITOR WHO CONFIRMED A CREDIT BALANCE OF RS.34,23,053. ASSESSI NG OFFICER DIRECTED THE ASSESSEE TO EXPLAIN THE DIFFERENCE BETWEEN THE CRED ITS SHOWN BY THE ASSESSEE VIS--VIS THE CREDITS SHOWN BY THE CREDITORS IN ITS BOOKS OF ACCOUNT. THE ASSESSEE SUBMITTED THAT THE DIFFERENCE OCCURRED DUE TO THE REASONS THAT A SUM OF RS.4 LACS EACH WAS TRANSFERRED TO THE LEDGER/CAP ITAL ACCOUNT OF SHRI KAMAL GUPTA AND SHRI KAPIL GUPTA BY THE ASSESSEE OTHERWIS E THERE IS NO DISCREPANCY. IN OTHER WORDS, ACCORDING TO THE ASSE SSEE, A LOAN OF RS. 8 LACS WAS TAKEN BY IT FROM M/S. POLY PLASTICS. IT WAS TRA NSFERRED TO CAPITAL GAIN TO TWO INDIVIDUALS. ASSESSING OFFICER DID NOT ACCEPT T HE CONTENTION OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE FAILED TO SUBSTANTIATE ITS EXPLANATION. HE MADE AN ADDITION OF RS.8 LACS. BEFORE THE LEARNE D CIT(APPEALS), ASSESSEE HAS EXPLAINED ITS POSITION BUT THE REPRESE NTATIVE FAILED TO ATTEND THE PROCEEDINGS. ACCORDING TO THE LEARNED CIT(APPEALS), THE PRESENCE OF THE PRINCIPAL OFFICER OF THE ASSESSEE OR THE COUNSEL WA S NECESSARY BECAUSE ACCORDING TO HIM ASSESSEE FAILED TO RAISE A SPECIFI C GROUND OF APPEAL. IT HAS EXPLAINED ITS GRIEVANCE IN THE STATEMENT OF FACTS B UT PRAYER WAS NOT MADE. ON 3 ACCOUNT OF FAILURE OF THE ASSESSEE TO PRESENT PRINC IPAL OFFICER OR THE COUNSEL BEFORE THE LEARNED CIT(APPEALS), ITS APPEAL HAS BEE N DISMISSED BY THE LEARNED FIRST APPELLATE AUTHORITY IN LIMINE. 3, WITH THE ASSISTANCE OF LEARNED REPRESENTATIVES, WE HAVE GONE THROUGH THE RECORD CAREFULLY. THE ASSESSEE SOUGHT ADJOURNM ENT ON ACCOUNT OF ILLNESS OF ITS COUNSEL. CONSIDERING THE LACUNA WHICH IN OUR UNDERSTANDING IS MERELY A PROCEDURAL ONE, ILLNESS OF THE COUNSEL AND THE DI SMISSAL OF APPEAL IN LIMINE WITHOUT ADJUDICATION ON MERIT, WE DEEM IT APPROPRIA TE TO SET ASIDE THE ORDER OF THE LEARNED CIT(APPEALS). THE ASSESSEE HAS PRODU CED ALL THE DETAILS BEFORE THE ASSESSING OFFICER AND IT IS JUST A VERIF ICATION OF THE RECORD WHETHER SUM OF RS. 8 LACS RECEIVED BY THE ASSESSEE AS A LOAN HAS BEEN FURTHER GIVEN AS A LOAN TO SHRI KAMAL GUPTA AND DULY ACCOUN TED FOR. CONSIDERING THE CUMULATIVE SETTING OF ALL THESE FACTS AS A WHOLE, W E SET ASIDE THE ISSUE TO THE FILE OF THE LEARNED FIRST APPELLATE AUTHORITY FOR R EADJUDICATION. THE ASSESSEE WILL BE AT LIBERTY TO PRODUCE ANY EXPLANAT ION OR MATERIAL BEFORE THE LEARNED FIRST APPELLATE AUTHORITY IN ORDER TO EXPLA IN THE DISCREPANCY OF RS. 8 LACS. IT IS NEEDLESS TO SAY THAT THE OBSERVATIONS MADE BY US WILL NOT IMPAIR OR INJURE THE CASE OF A.O. OR WOULD NOT CAUSE ANY P REJUDICE TO THE DEFENCE/EXPLANATION OF THE ASSESSEE. 4 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 25.04.2 012 SD/- SD/- ( K.D. RANJAN ) ( RAJPAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 25/04/2012 MOHAN LAL COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR