M/s. D.S.K.N. Jewellery (P) Ltd., New Delhi v. ITO, New Delhi

ITA 1347/DEL/2010 | 2001-2002
Pronouncement Date: 25-03-2011 | Result: Dismissed

Appeal Details

RSA Number 134720114 RSA 2010
Assessee PAN AAACD8563G
Bench Delhi
Appeal Number ITA 1347/DEL/2010
Duration Of Justice 11 month(s) 29 day(s)
Appellant M/s. D.S.K.N. Jewellery (P) Ltd., New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 25-03-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 25-03-2011
Date Of Final Hearing 14-03-2011
Next Hearing Date 14-03-2011
Assessment Year 2001-2002
Appeal Filed On 26-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL NEW DELHI BENCH B NEW DELHI BENCH B NEW DELHI BENCH B NEW DELHI BENCH B BEFORE SHRI R. P. TOLANI JUDICIAL MEMBER AND SHRI K. D. RANJAN ACCOUTANT MEMBER ITA NO. 1347 /DEL/2010 (ASSESSMENT YEAR 2001-02) M/S. DSKN JEWELLERY (P) LTD. VS. I.T.O. NEW DELH I 14/36 SHAKTI NAGAR DELHI (APPELLANTS) (RESPONDENTS) PAN / GIR NO. AAACD8563G APPELLANT BY: SHRI M P SETH MANAGER (WS) RESPONDENT BY: SHRI K. RAVI RAMA CHANDRAN SR. DR ORDER ORDER ORDER ORDER PER K. D. RANJAN AM: PER K. D. RANJAN AM: PER K. D. RANJAN AM: PER K. D. RANJAN AM: 1. THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT Y EAR 2001-02 ARISES OUT OF THE ORDER OF LD. CIT(A) XIII NEW DEL HI. THE GROUNDS OF APPEAL ARE REPRODUCED AS UNDER: 1) THE CIT(A) XIII NEW DELHI ERRED IN CONFIRMING THE ORDER OF THE A.O. WITHOUT AFFORDING AMPLE OPPORTUNITY TO THE APPELLANT. 2) THE CIT(A) XIII FURTHER ERRED IS NOT CONSIDERIN G THE RELATED MATERIAL AVAILABLE ON RECORD IN THIS REGARD . 3) THE CIT(A) XIII APPEAL ERRED IS NOT GETTING ON S TATUS REPORT FORM THE A.O. WHO HAD FRAMED THE ASSESSMENT ORDER. 2. THE ONLY ISSUE FOR CONSIDERATION RELATES TO CONF IRMATION OF THE ORDER OF A.O. WITHOUT AFFORDING AMPLE OPPORTUNITY T O THE ASSESSEE. THE FACTS OF THE CASE STATED IN BRIEF ARE THAT THE ORIGINAL ASSESSMENT WAS MADE ON 12.03.2004 ON AN INCOME OF ` 1 14 300/- AS AGAINST THE RETURNED INCOME OF ` 4 000/-. AN ADDITION OF ` 1 06 800/- WAS MADE BY DISALLOWING COMMISSION PAID TO SHARI RAVI K APOOR. ON APPEAL CIT(A) VIDE HIS ORDER DATED 12 TH OCT. 2005 DISMISSED THE APPEAL. ON FURTHER APPEAL ITAT DELHI BENCH VIDE O RDER DATED 19 TH I.T.A. NO. 1347/DEL/2010 2 SEP 2006 SET ASIDE THE ORDER OF CIT(A) AND RESTORED THE MATTER TO THE FILE OF THE A.O. WITH THE DIRECTION TO CONSIDER THE MATTER AFRESH IN RESPECT OF COMMISSION PAID TO SHRI RAVI KAPOOR IN T HE LIGHT OF THE EVIDENCE PRODUCED BY THE ASSESSEE BEFORE ITAT AND A NY FURTHER EVIDENCE WHICH ASSESSEE MIGHT CHOOSE TO FURNISH. 3. IN PURSUANCE TO THE DIRECTIONS CONTAINED IN ITAT OR DER THE A.O. REQUESTED THE ASSESSEE TO SUBMIT NECESSARY DET AILS ON 15.05.2007. ON THIS DATE NEITHER ANYBODY APPEARED NOR ANY REQUEST FOR ADJOURNMENT WAS FILED. THE A.O. AGAIN ISSUED NOTICE U/S 143(2) FIXINGS THE CASE FOR HEARING ON 14.06.2007 F OR FILING NECESSARY DETAILS AS DIRECTED BY ITAT. ON THIS DAT E ALSO NOBODY ATTENDED THE PROCEEDINGS. THE A.O. ISSUED AGAIN NO TICE ON 17.10.2007 FIXINGS THE DATE FOR HEARING ON 24 TH OCT. 2007. THE SAID NOTICE WAS SERVED BY THE INSPECTOR OF INCOME TAX. IN RESPONSE TO THIS NOTICE SHRI SAMAR KUMAR CA APPEARED ON VARIOUS DATES AND FILED THE COPY OF THE DOCUMENTS WHICH WERE FILED B EFORE THE ITAT. THE ASSESSEE WAS ASKED TO FILE THE COPY OF INCOME T AX RETURN OF SHRI RAVI KAPOOR TO WHOM COMMISSION OF ` 1 06 800/- WAS PAID. NONE ATTENDED ON BEHALF OF THE ASSESSEE. THE A.O. AGAIN ISSUED SHOW CAUSE NOTICE REQUESTING THE ASSESSEE TO FURNISH INF ORMATION ON OR BEFORE 27.11.2007. THIS NOTICE ALSO CAME BACK UNS ERVED WITH THE POSTAL REMARKS LEFT WITH ADDRESS DSKN 4/36 KAPOOR . THE A.O. AGAIN PROVIDED AN OPPORTUNITY TO THE ASSESSEE FOR F ILING I T RETURN BUT NOBODY APPEARED IN RESPONSE TO THE NOTICE SO IS SUED. THE A.O. THEREFORE CONCLUDED THAT ASSESSEE HAD NOT FILED TH E REQUIRED DOCUMENTS DESPITE AVAILING OF NUMBER OF OPPORTUNITI ES. THE A.O. FURTHER NOTED THAT WHOLE OF THE COMMISSION WAS PAID IN THE LAST WEEK OF MARCH I.E. ON 29.03.2001 AND 31.03.2001. H E ALSO NOTED THAT ASSESSEE COULD NOT PROVE THE GENUINENESS OF TH E PAYMENT AT THE TIME OF ORIGINAL ASSESSMENT EVEN AFTER AVAILING A NUMBER OF OPPORTUNITIES AND THE ASSESSEE DID NOT FILE COPY OF I T RETURN OF SHRI RAVI KAPOOR OF THE RELEVANT PERIOD. THE A.O. THERE FORE CONCLUDED I.T.A. NO. 1347/DEL/2010 3 THAT THE GENUINENESS OF COMMISSION PAID AT ` 1 06 8 00/- COULD NOT BE PROVED. HE THEREFORE DISALLOWED THE PAYMENT O F COMMISSION. 4. ON APPEAL BEFORE CIT(A) NONE ATTENDED IN RESPON SE TO THE NOTICE ISSUED AT THE ADDRESS GIVEN IN FORM 35 ON 30 .12.2008 AND 10.11.2009. IN VIEW OF THESE FACTS LD. CIT(A) CONC LUDED THAT THE ASSESSEE WAS PROVIDED ENOUGH OPPORTUNITIES BUT COUL D NOT ATTEND THE PROCEEDINGS AND FILED NECESSARY EVIDENCE. HE THEREFORE UPHELD THE ADDITION. 5. BEFORE US SHRI M P SETH MANAGER OF THE ASSESSE E COMPANY APPEARED AND FILED WRITTEN SUBMISSIONS. AS PER THE WRITTEN SUBMISSION IT HAS BEEN SUBMITTED THAT HE COMMISSIO N OF ` 1 06 800/- WAS PAID TO SHRI RAVI KAPOOR WHO HAD NOT COOPERATED WITH THE ASSESSEE. HE HAD NOT GIVEN COPY OF HIS IN COME TAX RETURN FOR THE REASONS BEST KNOWN TO HIM. BECAUSE OF THE NON-COOPERATION ON THE PART OF SHRI RAVI KAPOOR THE ASSESSEE COULD NOT PRODUCE INCOME TAX RETURN OF SHRI RAVI KAPOOR. HE FURTHER SUBMITTED THAT AS PER THE CERTIFICATE FROM THE BANK THE PAYMENT OF ` 40 000/- AND ` 66 800/- WAS MADE TO SHRI RAVI KAPOOR WHICH WERE PA SSED ON 31.03.2001. THE COPY OF BANK ACCOUNT HAS BEEN FURN ISHED. THEREFORE IT HAS BEEN PLEADED THAT ADDITION OF ` 1 06 800/- SHOULD BE DELETED. ON THE OTHER HAND LD. SR. DR RELIED ON THE ORDER OF LD. CIT(A). 6. WE HAVE HEARD BOTH THE PARTIES. FROM THE ASSESS MENT ORDER WE FIND THAT THE A.O. HAS DISALLOWED THE AMOUNT FOR THE REASON THAT ASSESSEE COULD NOT PROVE THE GENUINENESS OF THE PAY MENT OF COMMISSION AT THE TIME OF ORIGINAL ASSESSMENT. THE ASSESSEE HAD NOT FILED THE COPY OF I T RETURN OF THE RECIPIENT. THE ASSESSEE HAD PAID COMMISSION OF ` 1 06 800/- TO SHRI RAVI KAPOOR . THERE IS NO EVIDENCE ON RECORD TO PROVE AS TO WHAT SERVICES WER E RENDERED BY SHRI RAVI KAPOOR IN RESPECT OF WHICH COMMISSION OF ` 1 06 800/- WAS I.T.A. NO. 1347/DEL/2010 4 PAID. MERELY BECAUSE THE PAYMENT IS THROUGH BANK THE EXPENDITURE CANNOT BE ALLOWED. THE ASSESSEE HAD NO T PRODUCED SHRI RAVI KAPOOR NOR HIS COPY OF INCOME TAX RETURN WAS FILED. THEREFORE THE GENUINENESS OF PAYMENT OF COMMISSION HAS NOT BEEN PROVED. ACCORDINGLY IN OUR CONSIDERED OPINION LD . CIT(A) WAS JUSTIFIED IN UPHOLDING THE ADDITION MADE BY THE A.O . HENCE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD. CIT(A). 7. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS D ISMISSED. 8. PRONOUNCED IN THE OPEN COURT ON 25 TH MAR. 2011. SD./- SD./- (R. P. TOLANI) (K. D. RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:25 TH MAR. 2011 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR ITAT NEW DELHI