The DCIT, Circle-1,, Surat v. M/s. Laxmihari Prints Pvt.Ltd.,, Surat

ITA 1289/AHD/2010 | 2007-2008
Pronouncement Date: 06-08-2010 | Result: Dismissed

Appeal Details

RSA Number 128920514 RSA 2010
Bench Ahmedabad
Appeal Number ITA 1289/AHD/2010
Duration Of Justice 3 month(s) 13 day(s)
Appellant The DCIT, Circle-1,, Surat
Respondent M/s. Laxmihari Prints Pvt.Ltd.,, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 06-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 06-08-2010
Assessment Year 2007-2008
Appeal Filed On 23-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH (BEFORE S/SHRI G.D. AGARWAL VICE-PRESIDENT AND MAHAVIR SINGH JUDICIAL MEMBER) ITA.NO.1289/AHD/2010 WITH CO NO.157/AHD/2010 [ASSTT. YEAR : 2007-2008] DCIT CIR.1 SURAT. VS. M/S.LAXMIHARI PRINTS PVT. LTD. 3089-90 ANUPAM TEX. MARKET RING ROAD SURAT. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI K.MADHU SUDAN ASSESSEE BY : SHRI MUKUL JALAN O R D E R PER G.D. AGRAWAL VICE-PRESIDENT: THIS IS REVENUES APPEAL AND THE ASSESSEES CO AGAINST THE ORDER OF THE CIT(A)-I SURAT DATED 22.02.2010 ARISING OUT OF THE ORDER OF THE ASSESSING OFFICER P ASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE REV ENUE READS AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD.CIT(A)-I SURAT HAS ERRED IN DELETING THE ADDITI ON MADE BY THE AO OF RS.8 74 050/- ON ACCOUNT OF UNACCOUNTED CASH CREDIT U/S.68 OF THE I.T.ACT. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. THE AO MADE THE ADDITION OF RS.8 74 050/- BEIN G THE CREDIT IN THE ACCOUNT OF TEN PARTIES. THE CIT(A) AFTER CONSIDERING THE F ACTS OF THE CASE AND RELYING UPON THE DECISIONS OF THE HONBLE APEX COURT IN THE CASE OF ORISSA CORPORATION 159 ITR 78 AND ALSO THE CASE OF ROHINI BUILDERS 256 ITR 360 DELETED THE ADDITION. THE RELEVANT FINDING OF THE CIT(A) READS AS UNDER: ITA.NO.1289/AHD/2010 WITH CO NO.157/AHD/2010 -2- 2.3.5 IN THE PRESENT CASE AS ADMITTED BY THE A.O. THAT THE ASSESSEE HAS FILED CONFIRMATIONS WITH NAME ADDRESS AND PAN COP Y OF LEDGER ACCOUNT IN RESPECT OF ALL THE CREDITORS COPY OF BALANCE SH EET AND PROFIT & LOSS ACCOUNT AND COPY OF INCOME-TAX RETURNS IN RESPECT O F ALL THE CREDITORS AND HENCE THE ONUS HAS SHIFTED ON THE A.O. IN THIS CASE ALL THE LENDERS WERE INCOME TAX ASSESSEE'S AND FILING THEIR RETURNS OF INCOME WHICH PROVES THE IDENTITY OF THE LENDERS. ALL THE LOANS W ERE RECEIVED THROUGH CHEQUES. THE ACCOUNT CONFIRMATIONS WHICH WERE DULY SIGNED BY THE LENDERS REFLECTING TRANSACTIONS NAME COMPLETE ADD RESS AND PAN OF LENDER PROVES THE GENUINENESS OF THE TRANSACTIONS. THE LOAN AMOUNTS WERE DULY REFLECTED IN THE BALANCE SHEETS OF LENDER S. FROM THE BALANCE SHEETS THE CREDIT WORTHINESS OF LENDERS IS PROVED BEYOND ANY DOUBT. THE LENDERS ARE HAVING SUFFICIENT CAPITAL/ SOURCES FOR ADVANCING THESE LOANS TO THE APPELLANT. THE AO HAS SIMPLY STATED THAT THE ASSESSEE HAS NOT PRODUCED THE CREDITORS. AS STATED ABOVE BY FILING THE ABOVE MENTIONED DOCUMENTS THE APPELLANT HAS FULFILLED ITS ONUS IN T ERMS OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ORISSA COR PORATION LTD. (SUPRA) AND IN TERMS OF THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF ROHINI BUILDERS (SUPRA). IF THE ASSESSE E HAS GIVEN THE ABOVE MENTIONED DOCUMENTS THEN IT IS THE ONUS OF THE A.O. TO VERIFY THE FACTS AS STATED BY THE HON'BLE SUPREME COURT MERELY ISSUI NG NOTICES TO THE CREDITORS END THEN NOT PURSUING THE SAME CANNOT BE HELD AGAINST THE ASSESSEE. FURTHER AS STATED BY THE HON'BLE GUJARAT HIGH COURT IN THE ABOVE MENTIONED CASE THE ASSESSEE IS NOT REQUIRED T O PROVE HOW THE MONEY WAS DEPOSITED IN THE BANKS OF THE CREDITORS A ND THEREFORE IT IS NOT FOR THE ASESSEE TO GIVE THE BANK STATEMENT BUT FOR THE A.O. TO OBTAIN THEM EITHER FROM THE BANK OR FROM THE CREDITORS IF HE CONSIDERS IT TO BE NECESSARY. ONCE THE ONUS IS FULFILLED BY THE ASSESS EE IT IS FOR THE A.O. TO EXAMINE AND BRING ANY MATERIAL ON RECORD WHICH MAY HELP IN REBUTTING THE ONUS OF THE ASSESSEE. SINCE THE A.O. HAS NO MAT ERIAL ON RECORD THE ADDITION MADE IN THIS CASE IS THEREFORE DELETED I N VIEW OF THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF RO HINI BUILDERS (SUPRA) AND IN VIEW OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF ORISSA CORPORATION LTD. (SUPRA). SINCE THE CREDITOR S HAVE BEEN HELD TO BE GENUINE THE INTEREST DISALLOWED IS ALSO DELETED. H ENCE THESE GROUNDS OF APPEAL ARE ALLOWED. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES A ND THE FACTS OF THE CASE WE ENTIRELY AGREE WITH THE ABOVE FINDINGS OF THE CIT(A ). ADMITTEDLY THE ASSESSEE HAS FURNISHED THE CONFIRMATION OF ALL THE CREDITORS WITH THEIR NAMES ADDRESSES PERMANENT ACCOUNT NUMBERS ETC. THE ASSESSEE ALSO P RODUCED THE COPY OF THE BALANCE SHEET PROFIT AND LOSS ACCOUNT AND INCOME T AX RETURNS OF ALL THE ITA.NO.1289/AHD/2010 WITH CO NO.157/AHD/2010 -3- CREDITORS. AFTER FURNISHING THE ABOVE DETAILS AS PER THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF ORISSA CORPORATION LTD. ( SUPRA) THE ASSESSEE HAS DULY DISCHARGED ITS ONUS OF PROVING THE CREDIT. THEREAF TER IT WAS FOR THE REVENUE TO LEAD THE CONTRARY EVIDENCES IF ANY TO ESTABLISH T HAT THE CREDIT WAS NOT GENUINE. THE AO HAS NOT BROUGHT ON RECORD ANY EVIDENCE BUT MERELY REFUSED TO ACCEPT THE ABOVE EVIDENCES AS SUFFICIENT TO DISCHARGE THE ASSESSEES ONUS. THE ONLY ADVERSE FINDING GIVEN BY THE AO IS THAT THE CREDITO RS HAD DEPOSITED THE CASH IN THEIR BANK ACCOUNT SOON BEFORE THE ISSUE OF CHEQUE TO THE ASSESSEE. IN OUR OPINION THAT PER SE CANNOT BE AN EVIDENCE AGAINST THE ASSESSEE. ALL T HE CREDITORS ARE ASSESSED TO INCOME AND THEY HAVE DULY DISCLOSED THE AMOUNT ADVANCED TO THE ASSESSEE IN THEIR BALANCE SHEET. T HEREFORE THE REVENUE IF AT ALL WANTS TO VERIFY THE SOURCE OF CASH IN THEIR HANDS C AN EXAMINE THEIR CASE BECAUSE ALL THE CREDITORS ARE INDEPENDENTLY ASSESSED TO TAX . IN OUR OPINION ON THE FACTS OF THE CASE THE DECISION OF THE HONBLE APEX COURT IN THE CASE OF ORISSA CORPORATION LTD. (SUPRA) AS WELL AS THE JURISDICTIO NAL HIGH COURT IN THE CASE OF ROHINI BUILDERS 256 ITR 360 ARE SQUARELY APPLICABL E AND THE CIT(A) HAS RIGHTLY APPLIED THE SAME. WE THEREFORE UPHOLD THE ORDER OF THE CIT(A) AND DISMISS THE REVENUES APPEAL ON THIS POINT. 4. THE CO FILED BY THE ASSESSEE IS ONLY IN SUPPORT OF CIT(A)S ORDER. THEREFORE THE SAME IS DISMISSED AS BEING INFRUCTOU S. 5. IN THE RESULT THE REVENUES APPEAL AND THE ASSE SSEES CO ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 6 TH AUGUST 2010. SD/- SD/- (MAHAVIR SINGH) JUDICIAL MEMBER (G.D. AGARWAL) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 06-08-2010 ITA.NO.1289/AHD/2010 WITH CO NO.157/AHD/2010 -4- VK* COPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD