Anik Holdings Pvt. Ltd.,, Ahmedabad v. The Dy.CIT., (OSD) Range-1,, Ahmedabad

ITA 1628/AHD/2009 | 1994-1995
Pronouncement Date: 15-07-2011 | Result: Allowed

Appeal Details

RSA Number 162820514 RSA 2009
Assessee PAN AADCA0047R
Bench Ahmedabad
Appeal Number ITA 1628/AHD/2009
Duration Of Justice 2 year(s) 1 month(s) 27 day(s)
Appellant Anik Holdings Pvt. Ltd.,, Ahmedabad
Respondent The Dy.CIT., (OSD) Range-1,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 15-07-2011
Date Of Final Hearing 29-06-2011
Next Hearing Date 29-06-2011
Assessment Year 1994-1995
Appeal Filed On 19-05-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A AHMEDABAD BEFORE SHRI D.K. TYAGI HONBLE JUDICIAL MEMBER AND SHRI A.N.PHAUJA HONBLE ACCOUNTANT MEMBER ITA NO.1628/AHD/2009 ASSESSMENT YEAR:1994-95 DATE OF HEARING:29.6.11 DRAFTED:8.7.11 ANIK HOLDING PVT. LTD. 2/F SUMEL OPP. GNFC TOWER S.G. RAD THALTEJ AHMEDABAD PAN NO.AADCA0047R V/S. DY. CIT (OSD) RANGE-1 AHMEDABAD (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI S.N.SOPARKAR SR-AR RESPONDENT BY:- SHRI RAVINDRA KUMAR CIT-DR O R D E R PER D.K. TYAGI JUDICIAL MEMBER:- THIS IS APPEALS APPEAL AGAINST THE ORDER OF COMMI SSIONER OF INCOME- TAX (APPEALS)-VI AHMEDABAD DATED 23-01-2009 FOR TH E ASSESSMENT YEAR 1994-05. 2. THE ASSESSEES HAS TAKEN THE FOLLOWING GROUNDS: - 1. THE ORDER PASSED ON 34-01-2009 BY CIT(A)-VI AH MEDABAD IS WHOLLY UNLAWFUL AND IN GROSS VIOLATION OF THE PRINCIPALS O F JUSTICE SO THAT IS LIABLE TO BE QUASHED. 2. THE BOTH THE LOWER AUTHORITIES HAVE GRIEVOUSLY E RRED IN LAW AND OR ON FACTS IN HOLDING THE ADVANCE FROM AMBIK PROTEINS LT D. AS UNEXPLAINED CASH CREDIT. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) OUGHT NOT TO HAVE HELD THE SAID ADVANCE AS I NCOME FROM UNDISCLOSED SOURCES. THE LD. CIT(A) HAS FAILED TO A PPRECIATE THAT SINCE THE APPELLANTS SISTER CONCERN M/S. BLOOM DCOR LTD. HAD ADVANCED A ITA NO.1628/AHD/009 A.Y. 994-95 ANIK HOLDIG PVT. LTD. V. DCIT (OSD) RNG-1 ABD PAGE 2 SUM OF RS.30 LAKH TO AMBIK PROTEINS LTD. THE SAID CO. HAD UNILATERALLY ADJUSTED THE SAID SUM TO THE ACCOUNT OF THE APPELLA NT AND AS SUCH THERE WAS NO QUESTION OF IT APPEARING IN THE LIST OF LOAN S AND ADVANCES OF THE SAID COMPANY. 3. THAT APPELLANT HAS DISCHARGED THE ONUS U/S. 68 B Y PROVING THE IDENTITY OF CREDITORS SOURCE OF FUND GENUINENESS OF THE TRANSACTION AND REASON BEHIND SQUARED UP ACCOUNT THEREFORE ADDITIO N OF RS.30 LACS U/S.68 SHOULD BE DELETED. 4. BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN NOT CONSIDERING AND GROSSLY IGNORING VARIOUS EXPLANATIO NS SUBMISSIONS AND EVIDENCES PLACED ON RECORD BY THE APPELLANT IN IS P ROPER PERSPECTIVE AND FURTHER ERRED IN NOT APPRECIATING THE VIEW POIN T OF THE APPELLANT. THIS ACTION OF BOTH THE LOWER AUTHORITIES IS IN CLEAR BR EACH OF PRINCIPLES OF NATURAL JUSTICE AND THEREFORE DESERVES TO BE QUASHE D. 5. LEVY OF INTEREST U/S.234A/B OF THE ACT IS NOT JU STIFIED. 6. INITIATION OF PENALTY PROCEEDINGS U/S.271(1) OF THE ACT IS NOT JUSTIFIED. 3. THE BRIEF FACTS OF THE CASE ARE THAT ORIGINAL AS SESSMENT WAS PASSED IN THIS CASE DETERMINING TOTAL INCOME OF THE ASSESSEE AT NIL. LATER ON LD. CIT(APPEALS) INVOKED THE PROVISIONS OF SECTION 263 OF THE INCOME-TAX ACT 1961 AND DIRECTED THE ASSESSING OFFICER TO ADD RS.3 0 LAKH AS INCOME OF THE ASSESSEE U/S.68 OF THE ACT ON THE GROUND THAT AMBIK PROTEINS LTD. HAS NOT SHOWN ANY ADVANCES OR LOAN TO THE ASSESSEE DURING T HE YEAR AS THE SAME IS NOT REFLECTED IN THE BALANCE-SHEET AS ON 31 ST MARCH 1994. WHILE DECIDING THE APPEAL HONBLE ITAT SET ASIDE THE CASE TO THE FILE OF ASSESSING OFFICER FOR FRESH ADJUDICATION AFTER GIVING OPPORTUNITY TO THE ASSESSEE TO EXPLAIN THE DEPOSIT IN QUESTION. ACCORDINGLY ASSESSEE WAS ASKE D TO FURNISH ALL THE DOCUMENTS AND THE EVIDENCES IN POSSESSION OF THE AS SESSEE ON WHICH HE WANTED TO RELY. THE ASSESSEES CASE BEFORE THE LOWE R AUTHORITIES HAS BEEN THAT ASSESSEE RECEIVED LOAN OF RS.30 LAKH FROM AMBI K PROTEINS LTD. AND THIS LOAN WAS REPAID BY ITS SISTER CONCERN NAMELY M/S. B LOOM DCOR LTD. HENCE ACCOUNT OF THE ASSESSEE WAS SQUARED UP BY AMBIK PRO TEINS LTD. IN THEIR BOOKS OF ACCOUNT AND NOT SHOWN AS OUTSTANDING LOAN AND AD VANCE IN THE BALANCE- ITA NO.1628/AHD/009 A.Y. 994-95 ANIK HOLDIG PVT. LTD. V. DCIT (OSD) RNG-1 ABD PAGE 3 SHEET AS ON 31 ST MARCH 1994. IN SUPPORT OF THIS ASSESSEE FILED FO LLOWING PAPERS TO PROVE GENUINENESS OF CREDIT ENTRIES IN TH E BOOKS OF ACCOUNT OF THE ASSESSEE BEFORE LOWER AUTHORITIES:- SR.NO. DOCUMENTS 1 COPY OF CERTIFICATE OF PUNJAB NATIONAL BANK 2 COPY OF LETTER ISSUED BY GENERAL MANAGER FINANCE OF AMBIK PROTEINS LTD. 3 COPY OF ACCOUNT OF AMBIK PROTEINS LTD. FROM THE BOOKS OF APPELLANT 4 COPY OF ACCOUNT OF AMBIK PROTEINS LTD. FROM THE BOOKS OF BLOOM DEKOR LTD. 5 LEAVE TO DEFEND APPLICATION BEFORE CITY CIVIL COU RT HOWEVER THE ASSESSEE DID NOT SUCCEED IN SATISFYING THE LOWER AUTHORITIES AND ADDITION OF RS.30 LAKH WAS MADE TO THE INCOME OF TH E ASSESSEE BY THE ASSESSING OFFICER AND THE SAME WAS SUSTAINED BY LD. CIT(APPEALS). 4. FURTHER AGGRIEVED NOW ASSESSEE IS IN APPEAL BEFO RE US AND REITERATED THE SAME SUBMISSION AS MADE BEFORE THE LOWER AUTHOR ITIES AND ALSO PLACED RELIANCE SAME DOCUMENTS ON WHICH RELIANCE WAS PLACE D BEFORE THE LOWER AUTHORITIES. 5. LD. DR ON THE OTHER HAND RELIED ON THE ORDER OF LOWER AUTHORITIES. 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD WE FIND THAT IN THIS CASE IDENTITY OF THE CREDITOR AMBIK PROTEINS LTD. AND THE SOURCES OF FUND OUT OF WHICH LOAN WAS ADVANCED TO ASSESSEE AND THE GENUINENESS OF THE TRANSACTION IS ESTABLISHED BY THE CERTIFICATE ISSUE D BY CERTIFICATE OF PUNJAB NATIONAL BANK WHICH IS AVAILABLE AT PAGE 15 OF THE PAPER BOOK WHICH READS AS UNDER:- CERTIFICATE THIS IS TO CERTIFY THAT WE HAVE CREDITED C/A 1027 O F M/S. ANIK HOLDINGS PVT. LTD. BY TRANSFER FROM C/A 952 OF AMBIK PROTEIN S LTD FOR RS.1500 000 (RUPEES FIFTEEN LAKH ONLY) VIDE CHQUE N O.256985 DT. ITA NO.1628/AHD/009 A.Y. 994-95 ANIK HOLDIG PVT. LTD. V. DCIT (OSD) RNG-1 ABD PAGE 4 9/9/93 AND RS.1500 000/- (RUPEES FIFTEEN LAKH ONLY) VIDE CHEQUE NO.256986 DT. 10/9/93 ON 10/9/93 SD/-ILLEGIBLE THE FACT THAT THE ACCOUNT OF ASSESSEE AND ITS SISTE R CONCERN M/S BLOOM DCOR LTD. WERE SQUARED UP BY M/S. AMBIK PROTEINS LTD. IN THEIR BOOKS OF ACCOUNT IT PROVED BY THE LETTER ISSUED BY GENERAL MANAGER FINA NCE OF AMBIK PROTEINS LTD. WHICH IS AVAILABLE AT PAGES 16-17 OF THE PAPER BOOK. THESE FACTS ARE ALSO EVIDENCED BY THE AFFIDAVIT FILED BY AMBIK PROTEINS LTD. IN THE AHMEDABAD CITY CIVIL COURT THIS AFFIDAVIT IS AVAILABLE AT PAGES F ROM 20-31 OF THE PAPER BOOK. IN VIEW OF THE ABOVE WE FIND THAT ASSESSEE HAD SATISF ACTORILY EXPLAINED THE REASON BEHIND THE NON-APPEARANCE OF THE NAME OF THE ASSESSEE IN THE LIST OF LOANS GIVEN ATTACHED WITH THE BALANCE-SHEET OF AMB IK PROTEINS LTD. AND THEREFORE SIMPLY BECAUSE THE NAME OF THE ASSESSEE D ID NOT APPEAR IN THAT LIST ADDITION CANNOT BE MADE OF THIS AMOUNT IN THE HANDS OF THE ASSESSEE AND THE ADDITION OF RS.30 LAKH SO MADE BY ASSESSING OFFICER AND SUSTAINED BY LD. CIT(APPEALS) IS HEREBY DELETED. THIS GROUND OF ASSE SSEES APPEAL IS ALLOWED. 7. IN THE RESULT ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 15 /07/2011 SD/- SD/- (A.N.PHAUJA) (D.K. TYAGI) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD DATED : 15/07/2011 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-VI AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD