RAJ ENTERPRISES, MUMBAI v. ASST CIT RG 11(1), MUMBAI

ITA 1326/MUM/2013 | 2008-2009
Pronouncement Date: 08-04-2014 | Result: Allowed

Appeal Details

RSA Number 132619914 RSA 2013
Assessee PAN AAAFR3674F
Bench Mumbai
Appeal Number ITA 1326/MUM/2013
Duration Of Justice 1 year(s) 1 month(s) 23 day(s)
Appellant RAJ ENTERPRISES, MUMBAI
Respondent ASST CIT RG 11(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 08-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 08-04-2015
Date Of Final Hearing 23-03-2015
Next Hearing Date 23-03-2015
Assessment Year 2008-2009
Appeal Filed On 15-02-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH MUMBAI BEFORE S/SHRI B.R.BASKARAN (AM) AND AMIT SHUKLA (JM) . . ./ I.T. A. NO. 1326 / MUM/20 1 3 ( / ASSESSMENT YEAR : 20 0 8 - 09 ) M/S RAJ ENTERPRISES 12 TH FLOOR RAHEJA CHAMBERS 231 NARIMAN POINT MUMBAI - 400021 / VS. ASSTT.COMMISSIONER OF INCOME TAX - RANGE 11(1) AAYAKAR BHAVAN M K ROAD MUMBAI - 40002 0 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN/GIR NO. : AAAFR3674F / A SSESSEES BY SHRI NITESH JOSHI AND SHRI MANOJ DIXIT / RE VENUE BY SHRI AKHILENDRA P YADAV / DATE OF HEARING : 23.3 . 201 5 / DATE OF PRONOUNCEMENT : 08.4 . 201 5 / O R D E R PER B.R. BASKARAN (AM) THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 06 - 12 - 2012 P ASSED BY LD CIT(A) - 3 MUMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2008 - 09. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE ASSESSMENT OF SUNDRY CREDITORS BALANCE OF RS.1.44 CRORES. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF FINANCING AND DISTRIBUTION OF CINEMATOGRAPHIC FILMS. IT IS FOLLOWING CASH SYSTEM OF ACCOUNTING. HOWEVER THE BALANCE SHEET OF THE ASSESSEE DISCLOSED SUNDRY CREDITORS BALANCE OF RS.1.44 CRORES. HENCE THE AO T OOK THE VIEW THAT THE ASSESSEE CANNOT HAVE SUNDRY I.T.A. NO. 1326/ MUM/201 3 2 CREDITORS BALANCE UNDER CASH SYSTEM OF ACCOUNTING AND ACCORDINGLY TREATED THE SAME AS INCOME OF THE ASSESSEE. ACCORDING TO LD A.R THE ASSESSEE FILED A DETAILED LETTER EXPLAINING EACH OF THE CREDITORS BUT THE AO DID NOT CONSIDER THE SAME. ACCORDING TO LD A.R THE SUNDRY CREDITORS BALANCE REPRESENT ADVANCES RECEIVED BY IT AND THE NATURE OF EACH OF THE CREDITOR WAS EXPLAINED IN THE LETTER FILED BEFORE AO. BEFORE LD CIT(A) THE ASSESSEE FILED CERTAIN DOCUME NTS IN THE FORM OF ADDITIONAL EVIDENCES BUT THE LD CIT(A) DECLINED TO ADMIT THE SAME. ACCORDINGLY THE LD CIT(A) CONFIRMED THE ASSESSMENT OF RS.1.44 CRORES AS INCOME OF THE ASSESSEE. 3. FORM THE RIVAL SUBMISSIONS; WE NOTICE THAT THE ASSESSEE COULD N OT EXPLAIN THE NATURE OF SUNDRY CREDITORS BEFORE THE ASSESSING OFFICER. ACCORDING TO LD A.R THE ASSESSING OFFICER DID NOT CONSIDER THE LETTER FILED BY THE ASSESSEE. WE HAVE ALSO NOTICED THAT THE LD CIT(A) HAS REFUSED TO ADMIT ADDITIONAL EVIDENCES FILED BEFORE HIM BY THE ASSESSEE. THUS WE NOTICE THAT THERE WAS NO OCCASION FOR TAX AUTHORITIES TO EXAMINE THE EXPLANATIONS FURNISHED BY THE ASSESSEE. BEFORE US THE LD A.R PLEADED THAT THE ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY TO EXPLAIN THE SUNDRY C REDITORS. WE FIND MERIT IN THE SAID PLEA. IN OUR VIEW AFFORDING ONE MORE OPPORTUNITY TO THE ASSESSEE CANNOT CAUSE DAMAGE TO THE DEPARTMENT BUT ON THE CONTRARY THE SAME WOULD PROMOTE CAUSE OF JUSTICE. IT IS A SETTLED PROPOSITION THAT THE ASSESSING OFFI CER SHOULD STRIVE TO COMPUTE CORRECT TOTAL INCOME. HENCE WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY. ACCORDINGLY WE SET ASIDE THE ORDER OF LD CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THE SAME AFRESH AND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH THE LAW AFTER AFFORDING NECESSARY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I.T.A. NO. 1326/ MUM/201 3 3 4. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR S TATISTICAL PURPOSES. THE AB OVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 8 TH APR 2015 . 8TH APR 2015 SD SD ( / AMIT SHUKLA ) ( . . / B.R. BASKARAN) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI: 8 TH APR 2015 . . . ./ SRL SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. / DR ITAT MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER TRUE COPY (ASSTT. REGISTRAR) /ITAT MUMBAI