M/s Capital Audit Video Pvt. Ltd., New Delhi v. ITO, New Delhi

CO 287/DEL/2011 | 2003-2004
Pronouncement Date: 23-09-2011 | Result: Dismissed

Appeal Details

RSA Number 28720123 RSA 2011
Assessee PAN AABCC5384M
Bench Delhi
Appeal Number CO 287/DEL/2011
Duration Of Justice 1 month(s) 22 day(s)
Appellant M/s Capital Audit Video Pvt. Ltd., New Delhi
Respondent ITO, New Delhi
Appeal Type Cross Objection
Pronouncement Date 23-09-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 23-09-2011
Date Of Final Hearing 18-08-2011
Next Hearing Date 18-08-2011
Assessment Year 2003-2004
Appeal Filed On 01-08-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH B NEW DELHI) BEFORE SHRI RAJPAL YADAV AND SHRI B.C. MEENA ITA NO.2921/DEL/2011 ASSESSMENT YEAR: 2003-04 INCOME-TAX OFFICER VS. M/S. CAPITAL AUDIT VIDEO PVT. WARD 3(2) LTD. 303/2183-84 GALI NO.62 NEW DELHI. NAIWALA KAROL BAGH N.DELHI. (PAN: AABCC5384M) (APPELLANT) (RESPONDENT) CROSS OBJ. NO.287/DEL/2011 (ITA NO.2921/DEL/2011) ASSESSMENT YEAR: 2003-04 M/S. CAPITAL AUDIT VIDEO PVT. VS. INCOME-TAX OFFIC ER LTD. 303/2183-84 GALI NO.62 WARD 3(2) NAIWALA KAROL BAGH N.DELHI. NEW DELHI. (PAN: AABCC5384M) (CROSS OBJECTOR) (RESPONDENT) DEPARTMENT BY: SHRI ROHIT G ARG SR.DR ASSESSEE BY: S/SH ASHWANI TANEJA & TARUN KUMAR ADVS. ORDER PER RAJPAL YADAV: JUDICIAL MEMBER THE REVENUE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LEARNED CIT(APPEALS) DATED 11.03.2011 PASSED FOR ASSESSMENT YEAR 2003-04. ON RECEIPT OF NOTICE IN THE REVENUES APPEAL ASSESSEE HAS FILED CROSS OBJECTION BEARING NO.287/DEL/2011. THE REVENUE IN ITS APPEAL IS IMPUGNING THE DELETION OF RS.11 LACS WHICH WAS ADDED BY THE ASSES SING OFFICER UNDER SEC. 68 OF THE INCOME-TAX ACT 1961 WHEREAS IN THE CROSS -OBJECTION ASSESSEE IS 2 CHALLENGING THE RE-OPENING OF ASSESSMENT BY ISSUANC E OF A NOTICE UNDER SECTION 148 OF THE ACT. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED ITS RETURN OF INCOME ON 27.11.2003 DECLARING INCOME OF RS.2 604. ASSESSING OFFICER HAD RECEIVED AN INFORMATION FROM THE INVESTIGATION WING THAT INVESTIGATION WING HAD CARRIED OUT SEARCHES AT A NUMBER OF PLACES WHER EIN IT REVEALED TO THE DEPARTMENT THAT SHRI PRADEEP KUMAR SHRI GOVIND RAM SAINI SHRI RAJAN JASSAL SHRI MUKESH GUPTA SURINDER PAL SINGH ETC. WERE INVOLVED IN PROVIDING ACCOMMODATION ENTRIES TO VARIOUS CONCERNS . ASSESSEE IS ONE OF THE BENEFICIARIES OF SUCH ACCOMMODATION ENTRIES. THEREF ORE ON THE BASIS OF SUCH INFORMATION ASSESSING OFFICER HAS ISSUED A NOTICE UNDER SEC. 148 OF THE INCOME-TAX ACT 1961 AND REOPENED THE ASSESSMENT. I N RESPONSE TO THE NOTICE UNDER SECTION 148 ASSESSEE HAS SUBMITTED THAT THE RETURN FILED ORIGINALLY SHOULD BE TREATED AS FILED IN RESPONSE TO THIS NOTI CE. THE ASSESSING OFFICER ISSUED NOTICE UNDER SEC. 143(2) DATED 24.5.2007 WHI CH WAS SERVED UPON THE ASSESSEE ASSESSING OFFICER OBSERVED THAT ASSESSEE HAS ALLEGED TO HAVE SOLD SHARES TO M/S. NEERAJ CORROSION PRODUCTS PVT. LTD.. FOR A CONSIDERATION OF RS.7 LACS M/S. PRATEEK SECURITIES PVT. LTD. FOR A CONSIDERATION OF RS.1 50 000 AND M/S. FNS CONSULTANCY PVT. LTD. FOR A CONSIDERATION OF 3 RS.2 50 000 TOTALLING TO RS.11 LACS. ASSESSING OFFI CER HAS REFERRED THE STATEMENT OF SHRI PRADEEP KUMAR WHO WAS OPERATING T HE BANK ACCOUNT OF M/S. NEERAJ CORROSION (P) LTD. HE ALSO REFERRED THE STATEMENT OF SHRI GOVIND RAM SAINI WHO ALLEGED TO BE THE CONTROLLING AUTHORI TY OF M/S. NEERAJ CORROSION (P) LTD. SIMILARLY HE MADE A REFERENCE T O THE STATEMENT OF SHRI VISHESH KUMAR WHO WAS OPERATING THE ACCOUNTS OF M/S . PRATEEK SECURITIES AND STATEMENT OF SHRI SURINDER PAL SINGH WHO WAS CO NTROLLING FNS CONSULTANCY PVT. LTD. THEIR STATEMENTS WERE RECORDE D BY THE INVESTIGATION WING ON 30.5.2005 EXCEPT THE STATEMENT OF SHRI SUR INDER PAL SINGH WHOSE STATEMENT WAS RECORDED ON A NUMBER OF DATES NAMELY 24.12.2003 31.12.2003 AND 5.1.2005. THEY GAVE THE STATEMENTS B EFORE THE INVESTIGATION WING THAT THEY WERE IN THE BUSINESS OF PROVIDING AC COMMODATION ENTRIES. ASSESSING OFFICER DIRECTED THE ASSESSEE TO PRODUCE THESE PERSONS. HOWEVER ASSESSEE FAILED TO PRODUCE THESE PERSONS AND THERE FORE ASSESSING OFFICER DISBELIEVED THE SALE OF SHARES. HE MADE THE ADDITIO N OF CREDIT ENTRIES AVAILABLE IN THE BANK ACCOUNT OF ASSESSEE REPRESENT ING ALLEGED SALE OF SHARES AS UNEXPLAINED CASH CREDITS UNDER SEC. 68 OF THE IN COME-TAX ACT 1961. 3. DISSATISFIED WITH THE ADDITION ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LEARNED CIT(APPEALS). IT MADE ELABORATE SUBMISSIONS. IT 4 CONTENDED BEFORE THE LEARNED CIT(APPEALS) THAT ON 1 5.3.2000 ASSESSEE PURCHASED 40000 SHARES OF M/S. AGRIMA LEASING & FIN ANCIAL SERVICES LTD. FOR A CONSIDERATION OF RS. 4 LACS. IT HAS SUBMITTE D BEFORE THE ASSESSING OFFICER THE BANK STATEMENT OF M/S. AGRIMA LEASING & FIN. SERVICES PVT. LTD. CONFIRMATION OF ALLOTMENT OF SHARES BY M/S. A GRIMA LEASING & FINANCIAL SERVICES PVT. LTD. COPY OF ITR CERTIFIC ATE OF INCORPORATION COPY OF BANK STATEMENT OF THE ASSESSEE. IT HAS PURCHASED 15000 SHARES FOR A CONSIDERATION OF RS.1 50 000 OF M/S. SUMIT OVERSEAS (P) LTD. ON 19.12.2000. SIMILARLY ON 10.3.2000 IT PURCHASED 3000 SHARES O F SUPER TELECOM LTD. FOR A SUM OF RS. 3 LACS AND 2500 SHARES OF M/S. NAMEDI LEASING & FINANCE LTD. WERE PURCHASED ON 9.2.2001 FOR A CONSIDERATION OF R S.2 50 000. IN RESPECT OF ALL THESE SHARES ASSESSEE HAS SUBMITTED THE CONFIR MATION OF ALLOTMENT COPY OF FORM NO.18 ITR OF THE COMPANY WHOSE SHARES WERE PURCHASED BANK STATEMENT OF THE ASSESSEE SHOWING PAYMENT OF PURCHA SE. THESE SHARES WERE NO MORE AVAILABLE IN THE BOOKS OF ASSESSEE. THE SHA RES OF AGRIMA LEASING AND SUPER TELECOM LTD. WERE SOLD TO M/S. NEERAJ COR ROSION ON 25.5.2002 AND 8.10.2002 RESPECTIVELY. 15000 SHARES OF M/S. SU MIT OVERSEAS WERE SOLD TO M/S. PRATEEK SECURITIES ON 8 TH OCTOBER 2002. SHARES OF NAMEDI LEASING & FINANCE LTD. WERE SOLD ON 11 TH SEPTEMBER 2002 TO M/S. FNS CONSULTANCY. 5 ASSESSEE HAS REFERRED ALL THE DETAILS TO THE LEARNE D CIT(APPEALS). LEARNED CIT(APPEALS) DELETED THE ADDITION. 4. LEARNED DR RELIED UPON THE ORDER OF THE ASSESSIN G OFFICER WHEREAS LEARNED COUNSEL FOR THE ASSESSEE RELIED UPON THE SU BMISSIONS MADE BEFORE THE LEARNED CIT(APPEALS) AND PLACED ON PAGE NOS. 201 TO 252 OF THE PAPER BOOK. 5. WE HAVE DULY CONSIDERED THE RIVAL CONTENTIONS AN D GONE THROUGH THE RECORD CAREFULLY. THE ASSESSEE HAS PURCHASED THE SH ARES IN THE YEAR 2000. THESE SHARES WERE SHOWN IN THE BOOKS OF ACCOUNT. PA YMENT WAS MADE THROUGH ACCOUNT PAYEE CHEQUES FOR THE PURCHASES. IN THE YEAR UNDER APPEAL THESE SHARES ALLEGED TO HAVE BEEN SOLD. ASSESSING O FFICER IS DOUBTING THE SALE OF SHARES. THE EVIDENCE POSSESSED BY THE ASSESSING OFFICER IS THE STATEMENT OF CERTAIN PERSONS RECORDED BY THE INVESTIGATION WI NG IN 2005. THESE STATEMENTS WERE RECORDED NOT BY THE ASSESSING OFFIC ER AND NOT IN PRESENCE OF THE ASSESSEE. THUS THEY CARRY THE STATUS OF INF ORMATION BUT LOSSES THEIR CREDIBILITY FOR READING THEM AS AN EVIDENCE FOR DOU BTING THE OTHER EVIDENCE SUBMITTED BY THE ASSESSEE. MORE SO IN THIS YEAR T HERE IS NO UNEXPLAINED INVESTMENT. THE ASSESSEE HAS JUST SOLD THE SHARES. IF ANY ADDITION OUGHT TO BE 6 MADE THEN IT IS THE YEAR IN WHICH ALLEGED SHARES HA VE BEEN PURCHASED. IN THIS YEAR THE SHARES ARE NO MORE APPEARING IN THE ACCOU NTS OF ASSESSEE. THEIR PURCHASES HAVE NOT BEEN DOUBTED BY THE ASSESSING OF FICER THEN THE ALLEGED SALE PROCEEDS CANNOT BE TREATED AS UNEXPLAINED CASH CREDITS. LEARNED CIT(APPEALS) HAS APPRECIATED THESE ASPECTS WHILE DE LETING THE ADDITION. TAKING INTO CONSIDERATION THE FACTS AND CIRCUMSTANC ES AND THE EVIDENCE ON RECORD WE DO NOT FIND ANY ERROR IN THE ORDER OF TH E LEARNED CIT(APPEALS). 6. AS FAR AS THE CROSS-OBJECTION IS CONCERNED LEAR NED COUNSEL FOR THE ASSESSEE DID NOT PRESS THE GROUNDS OF CROSS-OBJECTI ON. THUS THE APPEAL OF THE REVENUE AS WELL AS THE CROSS-OBJECTION OF THE ASSES SEE ARE REJECTED. DECISION PRONOUNCED IN THE OPEN COURT ON 23.09.2011 SD/- SD/- ( B.C. MEENA ) ( RAJ PAL YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23/09/2011 MOHAN LAL COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR