Vilayil Satyan Pillai, Delhi V. ITO,Ward-60(5), New Delhi

ITA 972/DEL/2021

AI Insights

The case involves Mr. Vilayil Satyan Pillai, the appellant, who appealed against the order of the CIT(A)-38, New Delhi, which dated 15.04.2019. The primary contention in the appeal was regarding the additions made by the AO amounting to Rs. 6,76,14,124 on the grounds that the sundry creditors were not proved as genuine. The AO had issued notices under section 133(6) of the Income Tax Act, 1961 to various parties, which were returned unserved, leading to doubts about the genuineness of the creditors. The CIT(A) affirmed the AO's decision, leading to this appeal. The Tribunal also addressed a separate issue regarding a difference in closing stock amounting to Rs. 2,11,500, for which the assessee was given another opportunity to furnish a reconciliation statement.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121346 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 16-07-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 11-08-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: KISHAN KUMAR GUPTA
• Section: 68; 6; 133(6); 43; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Sh. C. M. Garg, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 972/Del/2021 : Asstt. Year : 2013-14 Mr. Vilayil Satyan Pillai, F-13, 3 rd Floor, Near Delhi Police Society, Janta Garden, Pandav Nagar, Patparganj Delhi-110091 Vs Income Tax Officer, Ward-60(5), New Delhi (APPELLANT) (RESPONDENT) PAN No. BIFPP2903R Assessee by : Sh. Kishan Kumar Gupta, CA Revenue by : Sh. Amit Katoch, Sr. DR Date of Hearing: 17.07.2023 Date of Pronouncement: 16.10.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of ld. CIT(A)-38, New Delhi dated 15.04.2019. 2. Following grounds have been raised by the assessee: “1 . Tha t ha vi n g rega rd t o t he f a ct s a nd c irc um s ta nc es o f t he c as e , Ld . CI T(A) has e rred in l aw as we ll a s o n f a ct s w hil e c onfi rm ing t he a c t io ns of Le ar n ed AO in ma k in g a g grega t e a dd it io ns of Rs . 6,76,14 ,1 24 /- ( Rs. 1,0 1, 51,3 41 + Rs . 5,7 4, 62 ,873 ) on t he a lleg ed g ro u nd t ha t Sund ry Cred it ors we r e not p r ov ed a s ge nu i ne, w it ho ut real i zed t h e fac t t hat t he det a ils of p urch as e s were v erif ied an d a cc ept ed as g enu ine e xp e nd it u re b y Ld . AO d ur ing t h e c ou rs e of a s ses s m ent pr oc e ed ing u /s 1 43 ( 3) of t h e In com e ta x ac t, 1 961 . 2. T ha t t he Ld. CI T(A ) ha s er re d in l a w as w e ll a s o n fac t s on c onfi rm ing t he ad dit ion of Rs .2 ,1 1, 500 / - on ac c ou nt o f di ff erenc e in t h e c los ing b a la nc e a s p er t h e c o n f irm at i on rec eive d f rom a p a r ty and a ss es s ee's b o ok s o f ac c ou nt , w h ile t he d iff erenc e am ou nt ing t o Rs .2 ,1 1, 500 /- w as n ot hing , b ut on ly d ue to ex c es s am ou nt as p er c o nf irm at ion rec eiv ed fr om t he p art y a ga ins t t he n ot ic es u/s 13 3 (6 ) of t h e Act. ITA No. 972/Del/2021 Vilayil Satyan Pillai 2 3. Tha t t h e L d. CI T( A) a ls o fa ile d to a pp r ec ia t e t he f a ct s in po int no.2 of gr ou n ds of a p p eal in his ord e r, t ha t w as app ea led a s u nd e r. " A. O has e rr ed in la w as w el l as o n f ac ts by n ot t ak ing t he P u rc h as e b ill whil e d ou bt i ng t he g en u ine ness of ou ts t and ing ba la nc e of c re d it ors " 4. T hat ha vi ng r eg a rd t o r eli ed o n v ar i ous c it ed c a s e la w, Ld . CIT ( A) ha s b ee n er red i n la w an d o n fac t s in c o nf irm i ng t he a dd it io ns m a d e b y Ld . AO u nd e r sec t io n 6 8 of t h e act , a lleg ed t he u nc on fi rm ed s u nd r y c red it ors not pr ov en t he gen uin enes s of t he t ra ns a c t io n, w hi le t h e p rov is io ns of s ec t ion 68 a re not a tt ra ct ed t o a mo u n t s repres ent in g p urc has es ma d e o n c red it . 5. Th at t h e Ld . CI T (A ) h as been e rr ed a ft er s i mp ly re lied on rep o rt o f ins p ec t or men t i on ed t ha t no s uc h p a r ty w as a v ail ab l e a t t h e g i ve n ad d r es s es , wit h o ut b ein g reli ed on ot her e vid enc es t o ve rify t he ex is t e nc e, gen ui nen es s and c red it w o rt hiness of t h e p a rt ies a nd w it hout a pp rec i at ed t he ot he r f a cts of p art ies l ik e o p e nin g b a l anc es , nat u re of r egu la r t ra ns ac t ion in c ur re nt y ea r a nd s t at us of b ala nc es in t he n ext y ea r et c .” Sundry Creditor: 3. The AO made addition on account of sundry creditor of Rs.6,80,14,124/-. The AO issued notices u/s 133(6) of the Income Tax Act, 1961 to 12 parties wherein all the addresses (the sundry creditors) found to be non-existing and the notices have been received unserved. 4. Before the ld. CIT(A), the assessee submitted ledger alongwith vouchers in support of his claim. The ld. CIT(A) held that the assessee did not prove the purchases as genuine and hence affirmed the action of Assessing Officer. 5. We have gone through the balance sheet of the assessee and also the proprietary concern, the same is reproduced as under: ITA No. 972/Del/2021 Vilayil Satyan Pillai 3  Balance sheet of the assessee  P&L Account of the assessee ITA No. 972/Del/2021 Vilayil Satyan Pillai 4  Balance sheet of the Proprietary concern of the assessee ITA No. 972/Del/2021 Vilayil Satyan Pillai 5  P&L Account of the Proprietary concern of the assessee ITA No. 972/Del/2021 Vilayil Satyan Pillai 6  Balance sheet of the Proprietary concern of the assessee ITA No. 972/Del/2021 Vilayil Satyan Pillai 7  P&L Account of the Proprietary concern of the assessee 6. Before us, the assessee at page no. 19 to 44 of paper book submitted the confirmations without quoting any PAN number or any other details. The signing authority have not been identified. From the confirmations, the signature of the persons is as under: ITA No. 972/Del/2021 Vilayil Satyan Pillai 8 ITA No. 972/Del/2021 Vilayil Satyan Pillai 9 7. The assessee has not submitted any details of movement of goods, receipt of the goods. No evidences to prove the genuineness of the purchases have been provided to the revenue authorities. The assessee has failed to discharge the primary onus casted upon him and hence, we decline to interfere with the order of the ld. CIT(A). 8. In the result, the appeal of the assessee on this ground is dismissed. Difference in the Closing Stock: (Rs.2,11,500/-) 9. In the interest of justice, the assessee is given another opportunity to furnish reconciliation statement before the AO who shall consider the same before taking a decision. ITA No. 972/Del/2021 Vilayil Satyan Pillai 10 10. In the result, the appeal of the assessee is dismissed. Order Pronounced in the Open Court on 16/10/2023. Sd/- Sd/- (C. M. Garg) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 16/10/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. 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