ITO, Salem V. M/s. Sri Ganesh Traders, Salem

ITA 941/CHNY/2009

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1088 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 08-02-2011
• Assessment Year: 1998-1999
• Appeal Filed On: 12-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SRINIVAS
• Assessee Lawyers: N MUTHUKUMARAN
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C CHENNAI BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO. 941/MDS/2009 ASSESSMENT YEAR : 1998-99 THE INCOME-TAX OFFICER, WARD-I(3), SALEM. V. M/S. SRI GANESH TRADERS, 96-A, CHAMUNDI STREET, SALEM-6. (PAN /GIR NO. : S-2599(972) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B. SRINIVAS RESPONDENT BY : SHRI N. MUTHUKUMARAN O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT(APPEALS), SALEM IN ITA NO. 59/98-99 DATED 30-3- 2009 FOR THE ASSESSMENT YEAR 1998-99. 2. SHRI B. SRINIVAS, SR. DR REPRESENTED ON BEHALF O F THE REVENUE AND SHRI N. MUTHUKUMARAN REPRESENTED ON BEHALF OF THE ASSESSEE. 3. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASSE SSEE IS AN ASSOCIATION OF PERSONS WHICH IS DOING THE BUSINESS OF MANUFACTURE AND SALE OF TEXTILES. IT WAS THE SUBMISSION THAT IN REGARD TO THE ENTRIES IN THE BOOKS OF ACCOUNTS REPRESENTING THE PURCHASES AND CREDITS IT WAS FOUND THAT THERE WERE DISCREPANCIES IN THE ACCOUNTS OF M/S. NANDHINI TRAD ERS, M/S. SARGURU AGENCIES I.T.A. NO.941/MDS/2009 2 AND M/S. SARAA YARN CENTRE. IT WAS THE SUBMISSION THAT THE ASSESSING OFFICER HAD CONSEQUENTLY MADE THE ADDITION ON ACCOUNT OF TH E PURCHASE INFLATIONS IN RESPECT OF THE THREE PARTIES TO AN EXTENT OF ` 5,55,860/- AND AN ADDITION OF ` 5,55,140/- ON ACCOUNT OF THE UNACCOUNTED INCOME REP RESENTING THE WRONG CREDITS. IT WAS THE SUBMISSION THAT THE LEARNED CI T(A) HAD DELETED THE ADDITIONS MADE BY ACCEPTING THE CONTENTION OF THE ASSESSEE TH AT THE TRANSACTIONS WERE GENUINE AND THE ERROR WAS ON ACCOUNT OF THE FACT TH AT THE TRANSACTIONS WERE BETWEEN THE ASSESSEE AND ITS SISTER CONCERNS AND TH E SAID THREE OTHER PARTIES. HE VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER. 4. IN REPLY THE LEARNED AUTHORISED REPRESENTATIVE V EHEMENTLY SUPPORTED THE ORDER OF THE LEARNED CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF THE ORDER OF THE LEARNED CIT(A) CLEARLY SHOWS THAT THE LEARNED CIT(A ) HAS VERIFIED ALL THE ENTRIES AND HAS CATEGORICALLY FOUND THAT THE ASSESSING OFFI CER HAS NOT DENIED THE TRANSACTIONS DONE BY THE ASSESSEE WITH THE SISTER C ONCERNS. IT IS ALSO NOTICED THAT HE HAS CONSIDERED THE FACT THAT DIFFERENCE IN THE PURCHASES WAS ON ACCOUNT OF RECTIFICATION OF THE ENTRIES IN THE SISTER CONCE RNS ACCOUNTS WHICH WERE ALSO VERIFIED BY THE ASSESSING OFFICER. IT IS ALSO NOTI CED THAT THE LEARNED CIT(A) HAS RECOGNIZED THE FACT THAT THE ASSESSING OFFICER HAS NOT DISPUTED THE PURCHASES MADE BY THE SISTER CONCERNS ON BEHALF OF THE ASSESS EE. A PERUSAL OF THE CHARTS AS EXTRACTED BY THE LEARNED CIT(A) AT PAGES 9 TO 11 OF HIS ORDER CLEARLY SHOWS I.T.A. NO.941/MDS/2009 3 THE EXACT PICTURE AND THIS CHART HAS NOT BEEN SHOWN BY THE REVENUE TO BE WRONG. THE FACTS AS BROUGHT OUT IN THESE CHARTS RE MAIN UNDISPUTED. IN FACT A PERUSAL OF THE ACCOUNT EXTRACTS AS PLACED BY THE LE ARNED DR IN THE COURSE OF HEARING WHICH HAVE ALSO BEEN BROUGHT OUT IN THE ASS ESSMENT ORDER CLEARLY TALLY WITH THE CHART AS EXTRACTED BY THE LEARNED CIT(A). IT IS NOTICED THAT THE ASSESSING OFFICER HAS ONLY CONSIDERED ONE PART OF T HE TRANSACTION WHEREAS THE TRANSACTION INVOLVES THREE PARTIES. HE HAS CONSIDER ED ONLY THE ENTRIES BETWEEN THE ASSESSEE ON ONE PART AND M/S. NANDHINI TRADERS, M/S. SARGURU AGENCIES AND M/S. SARAA YARN CENTRE ON THE OTHER PART WITHOUT TA KING INTO ACCOUNT THE SISTER CONCERNS OF THE ASSESSEE WHOSE ACCOUNTS HAVE BEEN F ULLY ACCEPTED BY THE ASSESSING OFFICER. IN THE CIRCUMSTANCES, AS NO ERR OR HAS BEEN POINTED OUT IN THE FINDING AS ARRIVED AT BY THE LEARNED CIT(A), WE ARE OF THE VIEW THAT THE FINDING OF THE LEARNED CIT(A) ON THIS ISSUE IS ON A RIGHT FOOT ING AND DOES NOT CALL FOR ANY INTERFERENCE. IN THE CIRCUMSTANCES, THE APPEAL OF THE REVENUE IS DISMISSED. 6. THE ORDER WAS PRONOUNCED IN THE COURT ON 10/2/20 11. SD/- SD/- (B. RAMAKOTTAIAH) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 10 TH FEBRUARY, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE