I.T.O., V. M/s Lucky Steel,

MA 2/RAN/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2635 (ITAT-RANCHI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-12-2014
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 24-03-2014
• Court: TRIBUNAL

Judgement Text

1 MA NO.02/RAN/04 M/S. LUCKY STEEL INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER M.A. NO. 02 /RAN/ 14 [ ARISING OUT OF IT A NO. 100/RAN/10 ASSESSMENT YEAR 2005 - 06 ] I.T.O W 2(2), JSR I VS. M/S. LUCKY STEEL, JSR ( APPLICANT ) ( RESPONDENT ) FOR THE APPLICANT : : SHRI DEEPAK ROSHAN, SR.S.C/LD.DR FOR THE ASSESSEE : SHRI S.K.PODDAR & M.K.CHOUDHARY, LDARS DATE OF HEARING : 05 - 1 2 - 2014 DATE OF PRONOUNCEMENT: 05 - 1 2 - 14 O R D E R SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : THE REVENUE HAS FILED THIS MISCELLANEOUS APPLICATION WITH THE PLEA THAT THERE IS PERVERSITY IN THE FACTS APPRECIATED BY THE TRIBUNAL AND HENCE THE DECISION TAKEN BY THE TRIBUNAL SHOULD BE RECONSIDERED AND RECTIFIED ACCORDINGLY. 2. THE LD D.R SUBMITTED THAT THE TRIBUNAL HAS PASSED ITS ORDER IN THE PENALTY APPEAL PREF ERRED BY THE ASSESSEE IN ITA NO.100/RAN/2010 BY ALLOWING THE APPEAL OF THE ASSESSEE. THE PENALTY U/S 271(1)(C) WAS LEVIED IN RESPECT OF AN ADDITION OF CASH CREDIT OF RS.1,50,000/ - MADE U/S 68 OF THE ACT. THE ASSESSEE HAD RECEIVED THE ABOVE SAID AMOUNT FR OM A PERSON NAMED SHRI TAHIR ANSARI. WHEN THE AO MADE ENQUIRIES WITH SHRI TAHIR ANSARI AND HE HAS DENIED THE LOAN TRANSACTION WITH THE ASSESSEE. ACCORDINGLY THE AO ASSESSED THE AMOUNT OF RS.1,50,000/ - AND LEVIED 2 MA NO.02/RAN/04 M/S. LUCKY STEEL PENALTY U/S 271(1)(C) OF THE ACT. HOWEVE R, THE AO HAS FOUND FROM THE BANK ACCOUNT OF SHRI TAHIR ANSARI THAT THE AMOUNT OF RS.1,50,000/ - HAS FLOWN FROM HIS BANK ACCOUNT TO THE ASSESSEE. LATER IT WAS EXPLAINED THAT SHRI TAHIR ANSARI HAD AVAILED A BANK LOAN FOR PURCHASING A TRUCK AND SHRI PANCHASH EEL PRASAD GUPTA STOOD AS GUARANTOR FOR THE LOAN, HAPPENED TO BE THE UNCLE OF ONE OF THE PARTNERS OF THE ASSESSEE FIRM NAMED SHRI BHARAT GUPTA. LATER SHRI TAHIR GAVE THE WORK OF BUILDING BODY OVER THE TRUCK TO SHRI PRAKASH GUPTA, WHO WAS FATHER OF THE PAR TNER SHRI BHARAT GUP TA. ACCORDINGLY, SHRI TAHIR OW ED A SUM OF RS.1,50,000/ - TO SHRI PRAKASH GUPTA. ACCORDINGLY, UPON THE INSTRUCTION GIVEN BY SHRI P RAKASH GUPTA, SHRI TAHIR ANSARI HAD PAID THE MONEY TO THE ASSESSEE IN SETTLEMENT OF THE AMOUNT PAYABLE BY HIM TO SHRI P RAKASH GUPTA. 3. THE LD D.R SUBMITTED THAT THE TRIBUNAL, IN THE IMPUGNED ORDER, HAS OBSERVED THAT SHRI PANCHSHEEL PD GUPTA IS A PARTNER OF THE ASSESSEE FIRM. HOWEVER, THE FACT REMAINS THAT HE WAS NOT A PARTNER AND HENCE THE SAID OBSE RVATION HAS RESULTED IN PERVERSITY OF FACT. ACCORDINGLY HE SUBMITTED THAT THE SAME HAS RESULTED IN A MISTAKE APPARENT FROM RECORD. 4. WE HEARD LD A.R AND PERUSED THE RECORD. WE NOTICE THAT THE TRIBUNAL HAD DELETED THE ADDITION ON APPRECIATION OF THE FACT THAT THE AMOUNT OF RS.1,50,000/ - HAS FLOWN FROM THE BANK ACCOUNT OF SHRI TAHIR ANSARI. ACCORDINGLY THE OBSERVATION MADE ABOUT THE STATUS OF SHRI PANCHSHEEL PD GUPTA, IN OUR VIEW, HAS NOT INFLUENCED THE DECISION TAKEN BY THE TRIBUNAL. ACCORDINGLY, W E DO NOT FIND ANY MERIT IN THE PETITION FILED BY THE REVENUE. 3 MA NO.02/RAN/04 M/S. LUCKY STEEL 5. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 - 12 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DATED 05 - 12 - - 2014 COPY OF THE ORDER FORWARDED TO: 1 . APPLICANT : 2 RESPONDENT : I 3 . CIT, 4 . CIT(A), 5 . DR, ITAT, RANCHI **PP/SPS / TRUE COPY] BY ORDER, ASSTT REGISTR AR.